you have 10 vacant units open three 1 bedrooms renting for $800 a month, six 2 bedrooms renting for $1050 a month and one 3 bedrooms renting for 1475 a month, what is your monthly rental loss if you do not rent these units?
THANK YOU SO MUCH!
1*800 + 6*1050 + 3*1475 = ?
Hi Steve.
i came up with 11,525, would this be correct?? thank you very much!
To calculate the monthly rental loss if you do not rent these units, we need to determine the total potential rental income from these vacant units and subtract it from the actual rental income if all units were rented.
First, we'll calculate the potential rental income for each type of unit:
- For the three 1-bedroom units, the potential rental income is 3 units * $800/month = $2400/month.
- For the six 2-bedroom units, the potential rental income is 6 units * $1050/month = $6300/month.
- For the one 3-bedroom unit, the potential rental income is 1 unit * $1475/month = $1475/month.
Next, we'll add up the potential rental income from all units:
$2400/month + $6300/month + $1475/month = $10,175/month.
Finally, to calculate the rental loss if these units are not rented, we'll subtract the potential rental income from the actual rental income:
Actual Rental Income - Potential Rental Income = Rental Loss
Let's assume the actual rental income is $0 since these units are vacant.
$0/month - $10,175/month = -$10,175/month.
Therefore, the monthly rental loss if you do not rent these units is -$10,175. This negative value indicates the potential income that is not being collected and represents the lost revenue from the vacant units.