Maintenance on apartment vs. 1-4 units

[Mariah Jeffery]

When you go beyond the 50% rule and start trying to estimate expenses in more detail, what do you use to estimate maintenance and repairs for an apartment building of say, 20 units? I know there will be a big difference between a building that was built within the last 5-10 years and an older one. I'm looking at one that was built in 1977 but has had a new roof, new windows, exterior paint, and a few interior improvements within the last 5 years. For my 1951 duplex, I use 20% of the rent as my estimate. It's been much less than that, but I haven't had to replace a roof or paint the exterior yet, so I figure it will average out to be about right. For a 20-unit building, shouldn't it be lower due to economies of scale? Changing the estimate from 20% to 15% improves my cash flow by $700/month!