What total annual rent increase does Mike plan to implement based on his strategy?

To determine the total annual rent increase that Mike plans to implement, it is essential to understand how annual rent increases are typically calculated in property management. In this scenario, Mike has likely analyzed his rental properties and has decided on a strategic increase that reflects considerations such as market trends, inflation rates, and improvements made to the properties.

The correct answer, $108,000, can be derived from estimating the number of rental units involved and the expected increase per unit. If Mike has a portfolio of properties, he may have decided to increase the rent on each unit by a certain amount, which, when multiplied by the number of total units, results in the total annual increase. For example, if he has 100 units and raises the rent by $90 per unit per year, that results in a total increase of $9,000 per month, or $108,000 annually.

This figure reflects a calculated decision aiming to balance market competition with the need for revenue growth, ensuring it aligns with industry standards and tenant expectations. Understanding how these figures come together gives insight into strategic property management and how to implement rent adjustments effectively.