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Refer to Q22 and the solution of the same
- The question does not ditectly ask about the treatment of prop mgmt fee but looking at the answer I had this doubt that if ever such a treatment question is asked in the exam how do I solve it
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While valuing a building using Income Approach, when “property management fee” is given in a question, how should it be treated?
Should it be deducted from PGI to calculate EGI
OR
Deduct it from EGI to calculate NOI?
Does the treatment differ when the property management fee is given in % terms from when it is given in $ terms?
Thanks.
Aashi
I would be able to ans better if u could share the question
I have inserted the question. Please check.