Art Neuner, an investor in real estate, bought an office condominium. The market value of the condo was $250,000 with
70%
assessment rate. Art feels that his return should be 12% per month on his investment after all expenses. The tax rate is $31.50 per
$1,000. Art estimates it will cost $275 per month to cover general repairs, insurance, and so on. He pays a $140 condo fee per month.
All utilities and heat are the responsibility of the tenant. Calculate the monthly rent for Art. (Round your intermediate calculations and
final answer to the nearest cent.)
Monthly rent

Question

contestada

Respuesta :

anthougo anthougo · Answer 1 · 2022-05-04T13:04:16+02:00

The monthly rent that Art Neuner, an investor in real estate, who bought an office condominium, should charge the tenants is $979.31.

The monthly rent can be computed by adding all monthly expenses and marking them up by the expected returns.

Market value of property = $250,000

Assessment rate = 70%

Assessed value = $175,000 ($250,000 x 70%)

Expected rate of return = 12% per month

Monthly investment cost and expenses:

Property tax = $5,512.50 ($175,000 x $31.50/$1,000)

Monthly property tax = $459.38 ($5,512.50/12)

General repairs, insurance, etc. = $27N5

Condo fee per month = $140

Total expenses per month = $874.38

Monthly return = $104.93

Total monthly rent = $979.31

Thus, the monthly rent for Art Neuner for the office condominium is $979.31.

Learn more about charging monthly rent at https://brainly.com/question/9529262

#SPJ1