Analyzing Rental expenses Illinois, Chicago

[Vincent Parello]

Hey everyone,

I had a question about analyzing rentals, I see people add the expense of Maintenance, Property manager, and vacancy along with others. And I have learned that people use a percentage of the rent to figure out the following.

Maintenance 10%

Property manager 8-10 %

Vacancy 5 %

I know everyone may have a different way or a different percentage they use.

I wanted to get every ones opinion on this. I have been analyzing my deals with the PIMIA , utilities etc. and I do 23% for the long term expenses. Maintenance 10% PM 8% and Vacancy 5%. 

My question is, Is there any good reasons to justify lowering my percentages, For example. If I have a multi-unit can I lower the vacancy ? or if the home was built pre 2000 could I lower the Maintenance %?