How much % of rent goes towards expenses?

[Benjamin Blackburn]

Hello everyone,

I feel like I should've been able to find the answer to this question by looking through the forums but for some reason I cannot find it.  So forgive me if it was right under my nose.

So, when calculating expenses is there a guideline that you all usually go by when it comes to the % of rent that is being used for certain expenses?  For Example:

Expenses

Property Management %?

CapEx %?

Vacancy %?

Maintenance %?

Ect...

Thank you all and Happy Labor Day!!!

[J Scott]

Originally posted by @Benjamin Blackburn:

Thank you all for your insightful responses.  It really allows me to get a good feel of everything.  So, I have one more question and it might be kind of weird but here goes...

When it comes to the expenses that aren't getting paid monthly, where do those funds go?Are they just being stored in one seperate bank account?

 That really depends on how you'd like to do it.  If you need to keep the funds separate in another bank account, there's no issue doing it that way.  For landlords who have multiple units, they will typically keep a separate account with reserves to cover all of their properties.  Keep in mind that if you own 10 properties, you don't necessarily need to keep 10x as much in reserves.  It's unlikely all the roofs will need to be replaced at the same time, for example.  Though you will have things like property tax bills that come due at the same time.