Expense Percentages-Apartment Complex

Comments(5)

• 
  DaveT5th December, 2003

  In the absence of any actual expense numbers, just use 50% as a starting point.

• 
  MrMike5th December, 2003

  Quote:
  On 2003-12-05 11:26, DaveT wrote:
  In the absence of any actual expense numbers, just use 50% as a starting point.
  
  
  Do you feel that hold true for single unit rental houses, or duplexes?

• 
  Patoons5th December, 2003

  Do you know of any individual breakdown that would be typical? Like 8% managment fees? I have the total expenses that I got from city hall, but I want to figure out the breakdown.
  
  Thanks.[ Edited by Patoons on Date 12/05/2003 ]

• 
  DaveT5th December, 2003

  Patoons and MrMike,
  
  As a rule of thumb, operating expenses for investment rental properties are between 30% and 50%. Just where depends upon your actual expenses for property taxes, liability insurance, hazard insurance, advertising, legal fees, leasing fees, management fees, pest control, utilities, trash removal, preventive maintenance, repairs and upkeep, postage, supplies, property owners association dues, and your contributions to a replacement reserve fund.
  
  Not all of these may apply in a given situtation, and many are dependent upon local factors. Self-managing and do-it-yourself repairs reduce your overhead costs, while outsourcing everything increases your overhead. Since 50% is usually the worst case, I say use that figure until you can refine your estimates with actual expenses.

• 
  MrMike5th December, 2003

  Thank you Dave for taking the time to post a detailed answer.
  
  Mike