Average Multifamily expense

[Brandon Weigel]

Hello, I am new here and had a question I am hoping to get some answers on. I recently reviewed some details on an 8 unit property and I am curious what everyone averages for expenses on smaller Multifamily apartments? This particular property had around 625+/unit in cleaning expenses and normally has around $1,875/unit in repairs/supplies and about $700/unit for insurance annually. The yearly totals came out to be $15,000 in repairs/supplies, $5,700 in taxes, and $5,000 in cleaning expenses. Compared to other publicly listed properties I have seen these seem high but I’m not sure what to compare to exactly. If anyone could give some insight into what their average expenses per unit are in these areas I would very much appreciate it. Thanks!

[Alecia Loveless]

@Brandon Weigel Hi. I don’t know if you can compare buildings apples to apples.

But, I have a 4 unit that the insurance is about $2,500, I keep up with the cleaning in the one small common area that contains the laundry, and I’m expecting one turnover this year which will require a flip with a cleaning which will be about $300 for the cleaning portion. The building has been very well maintained and so far has only had one small repair that cost $150. I will have the furnace cleaned and would like to do some work to the hot water system which would likely bring the total repair portion to around $1700.

I allocate 7% of rents for repairs and maintenance however and set it aside in my savings. That would be approximately $2600. I also save 7% for CapEx and 7% for vacancy.

My handyman would like to see my upgrade the furnace which would be about $8,000 but as there are no problems with it yet I hope to wait two more years. Also I believe I have a bed tenant lined up for the one who is moving so I should only have about a 2 week vacancy.