PropAlly puzzles/ Puzzle #2
Which rental made more money?
Property A rents for $650 a week. Property B rents for $550. Which one left more for the owner this year?
Fictional example
The answer
Property B, by $1,215.10.
Property A collected $1,300 more rent, but six empty weeks, a letting fee and bigger repairs took more than that back.
| For the year | Property A | Property B |
|---|---|---|
| Weekly rent | $650 | $550 |
| Weeks vacant | 6 | 0 |
| Rent collected | $29,900.00 | $28,600.00 |
| Management fee 7.7% | −$2,302.30 | −$2,202.20 |
| Letting fee (1 week + GST) | −$715.00 | $0.00 |
| Repairs | −$2,000.00 | −$300.00 |
| Left for the owner | $24,882.70 | $26,097.80 |
Why the higher rent lost
Vacancy costs the most
Six empty weeks at $650 is $3,900 of rent that never arrived.
A new tenant costs money
A letting fee of one week’s rent plus GST added $715 to Property A’s year.
Compare what’s left, not the rent
Rent is the easiest number to see and the least useful one for comparing properties.
See what each rental really kept
PropAlly shows rent, fees and expenses for every property side by side, across every agent.
Start with one property freeAll figures on this page are a fictional example for illustration. They aren’t market averages, a tax calculation or financial advice.