Study that "Proves" the 50% rule

5 Replies

In the past there has been reference to a study done over some large number or rental units that showed the expense ratio was close to 50% (want to say something like on average 49.6% or something like that).

I have never seen this report and I was trying to Google it a few different ways but nothing particularly close to what I have in my head was coming up (Mostly articles or reports about how much tenants pay in rent).

Does anyone know where to find this study, if it in fact actually exists? 

I may be wrong but I feel that @Jon Holdman you were one of the people I have seen talk about this in the past. 

These were two datasets of expenses reported by apartment complexes.  One was posted many years ago by a member who's no longer active.   I recall a later post saying he was selling this data.  I can't recall his name.  The other was posted a few years ago by, I think, @Bryan Hancock   Not sure if that data is still available and I may be mis-remembering who posted it.

Thanks for the info guys.

Jon thanks for reminding me that some people had talked about it before.  Maybe Bryan will chime in and have more insight.

If not for my purposes at least the info you gave Matt is more than adequate.  Thanks for checking and posting.  You apparently did a better job coming up with the right search terms than I did.  :)

Matt beat me to it.  NAA also puts out a study:

NAA Expense Studies

Keep in mind buildings operate differently in different markets and submarkets.  YMMV.  

Thanks Bryan!

Yeah got most of that from Matt, but I didn't notice the infographics when I saw his link so that is a nice little find to quickly digest the main points.

Oh and of course there will be differences abound.  I was just trying to find some hard data that supported the use of the 50% rule as a rule of thumb for a quick initial screen. 

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