what are normal repair/maintenance expenses per unit per month?

Question

I have a 7 unit C class building built in the 1960s, and I feel as though my management company is charging me absurd repair and maintenance fees. What are normal repair/maintenance expenses per unit per month?

Steve S. · Answer

5% of rent for month to month maintenance and 10% for CAP ex. I self manage. If there's not a big expense one year where I don't use the funds from the cap ex acct. I will roll it over to the next year but usually will spend it at max every 3 years to make sure the place is always on the up and up and it helps with tax deductions.

Hadar Orkibi · Answer

Account Closed you need to verify that what they charge you is actually been repairs and done. there are many horror stories about PM's that over charge.

Its hard to know if you are out of are. But i allow for at list 7% Maintenance and 7% Capex per year.

In your market, you will have a average set amount of expenses you use for underwriting.

Ie. $3500 per unit per year expenses all up.  do you know your markets typical expense?

If you don't, ask a lender or a broker they should give you heads up.

Patrick Liska · Answer

That's a loaded question, what maintenance are you asking about? Inside the unit, the building itself or the building and lawn/ snow care? Every place is different depending on how old it is and what is in it, how old the systems are. Best anyone can do is give you some averages that they have had, like the answers you have already gotten, but that may not mean anything when it comes to your building, but may be close enough for you to figure on.

Todd Dexheimer · Answer

Account Closed, this really will depend on the condition of your building. Is is old galvanized and cast iron piping, old windows, cabinets, bathrooms, furnaces, etc or has it been renovated. I would expect to spend around 10-15% of the gross rents if it is decent condition and much more if things are worn down.

Vaughn Smith · Answer

Account Closed Can you provide more info about the situation? The charges in question can vary greatly based on a slew of factors, more info on the issue may help you to receive more helpful responses to your post

Jeff Kehl · Answer

@Colin Stuart As others have said, it's hard to tell. Did you buy the property in the last year or so? What kind of shape was it in when you bought it? Was it inspected?

I bought an 8-unit last year and I spent more than $60k in repairs and capex on it last year. But we completely rehabbed every unit inside and fixed up the outside. I wouldn't expect to have too much repairs in the next 5 years.

On the other hand, I have bought properties in tip-top condition where the inspector struggled to find something wrong with it. I will usually experience very little repairs on a property like that unless I suddenly get a lot of turnover or something random happens like someone steals an HVAC unit or there's a fire.

what are normal repair/maintenance expenses per unit per month?

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