Don owns a rental property and during the year ended 30 June 2020 he received gross rent of $14,040. From this gross rent, the property manager took out his fee of $1,404 and a leasing fee of $130 and paid, on behalf of Don, the council rates of $1,200. Don paid the water rates of $1,100 and undertook various minor repairs of $220 and also paid bank interest of $7,500. What is Don's net rental income for the year ended 30 June 2020?

Question

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Don's net rental income is calculated as follows: Gross rent ($14,040) minus property manager's fee ($1,404), leasing fee ($130), council rates ($1,200), water rates ($1,100), repairs ($220), and bank interest ($7,500). This results in a net rental income of $2,486.

Don Owns a Rental Property and During the Year Ended