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  • jeridmeagan

Where Does $1 of Rent Go?

Updated: Apr 24, 2020

With all the discussion about rent collections during the COVID-19 pandemic and shutdown, it's important to understand how one dollar of rent is allocated by the property owner. According to the National Apartment Association, only $0.09 on every dollar of rent is returned to the property owner after mortgage ($0.39), operating/managing the property ($0.27), taxes ($0.14) and capital expenses ($0.10) are taken into account.

That is not a huge margin of error - rent collections and unemployment will be important statistics to track in coming months.

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