Expenses Per Unit

[Taylor Vaughn]

Does anyone use rules of thumb for estimating expenses per unit for multi-family property?  I have recently been told:

Owner paid utilities:  4K-4.5K Door

Tenant paid utilities:  3K - 3.5K Door

Do any owners have actuals per door they can share?

I'm in Central Texas.

Thanks!

[Joel Owens]

How many doors are you talking a 4 unit or a 100 unit?? They operate differently with expenses.

For above 5 units a typical rule of thumb with landlord paid utility  is 60% of gross expected income.

So say 100 units at 700 in rent per door is 70,000 monthly X 12 = 840,000 gross expected a year for income.

840,000 X .40 ( 60% costs) = 336,000 expected annual NOI

840,000 - 336,000 = 504,000 annual  expected expenses  / 100 doors = 5,040 a door per year and / 12 = 420 / month. 

This is with no deferred immediate capex to the property which would come off the purchase price.