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Insurance Costs

Apartment owners incur a further expense if
they contract a management agency to manage
their apartments and collect income.

An added expense, required by finance
companies to protect their mortgages, is
payment on fire, theft, storm, and (in most
cases) extended liability insurance polices.
Estimates of this cost by landlords, depending
on the policy's coverage, range form $12-40 a
year per apartment.

As an illustration of what portion of rents
accounts for operating costs. These major
expenses, plus other minor operating costs,
accounts for 30-35 per cent of the collectible
income of Mr. Raynor's apartment projects.