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What Goes Into $1 Of Rent? What Landlords
Y Wish Renters Knew by Yardi breeze
ou don’t have to study the WHERE WE GOT OUR DATA
history of property management
to know there can be friction
between landlords and renters.
And thanks to all the myths
about property managers, it
can feel like renters always get
the benefit of the doubt (in the Owners get about 10% of a property management court of public opinion). Perhaps business’s total income. While the public may
the biggest myth about landlords is that they enjoy sometimes see owners as being part of large, large margins and can keep going without a steady faceless corporations, many apartment owners run
stream of rent payments. If only more of the public knew how every $1 of rent is actually broken down. Of course, your business’s actual breakdown may vary depending on management fees, property taxes, payroll and employee benefits, maintenance expenses, etc. We hope this piece helps property managers and owners explain their side of the story to renters as well as the general public.
small businesses that operate on slim margins.
It’s common for people to “own” rental properties without realizing it. That’s because many pensions and 401k plans are invested in real estate, often in the form of REITs. The success of these funds depends in part on the success of the rental property
Please turn to page 89
Here’s the original infographic from NAA that covers everything discussed in this article. It might even make a great printout to keep handy at your office.
OWNERS: 10 CENTS OF EVERY $1 RENT
AMM3 APARTMENT MANAGEMENT MAGAZINE - NOVEMBER 2021 87