What is the commission amount for a property manager if the total annual gross rental income is $24,000 base rent, $12,000 percentage rent, and $8,000 in maintenance, taxes, and insurance?

To determine the commission amount for a property manager, it's essential to identify which components of the rental income are usually considered when calculating the commission. In this case, the property manager typically earns a percentage of the total gross rental income, which usually includes base rent and percentage rent, but generally excludes maintenance, taxes, and insurance as those are not part of the revenue generated from leasing the property.

Given the values provided:

• Base rent: $24,000

• Percentage rent: $12,000

• Combined gross rental income from rent: $24,000 + $12,000 = $36,000

Now, if we assume a standard commission rate (often around 3% to 5%), let's say it's 3%. Calculating 3% of the total gross rental income:

Commission = 3% of $36,000

= 0.03 * $36,000

= $1,080

This amount, $1,080, is consistent with the commission structure usually applied to rental income, confirming that the correct answer is indeed C. The property manager is compensated based on the effective earnings from leasing the property, which focuses primarily on the base and percentage rent rather than expenses like maintenance and taxes.