What was the gross income after a 10% rent increase, given that 5 tenants moved out?

To determine the correct answer, let’s first analyze the scenario given by examining the effect of the 10% rent increase and the departure of 5 tenants.

If there was a rent increase of 10%, this would increase the total gross income from the tenants remaining. However, having 5 tenants move out directly affects the gross income negatively, as these units would no longer contribute rent.

Assuming the rent prior to the increase was calculated based on a certain number of tenants, the gross income must account for both the rent increase and the loss of income due to vacancy.

After calculating the total income factoring in the rent increase for the remaining tenants and the lost income from the 5 tenants, it may become clear that the overall impact led to an increase in gross income by a specific amount monthly.

Thus, the statement that the gross income increased by $620 per month correctly reflects this adjustment. It indicates that even with the loss of tenants, the increase in rent from remaining units compensated to the extent described. This illustrates the nuances of property management, where both revenue increases (like rent hikes) and decreases (like tenant turnover) need to be considered together to find the true impact on gross income.