Is there a way to find a regional average operating expenses for residential multi-unit property?
Obviously, different regions of the country have different operating expenses. It seems like to me it is really a matter of finding out by getting local estimates from contractors, managers, etc… I guess I am wondering if there is a simple database to look up certain information relating to operating expenses for say, Mid-Atlantic states.
It seems like to me it is really a matter of finding out by getting local estimates from contractors, managers, etc...
What kind of operating expenses are you talking about? For what business? Rental Properties? Rehabbing? Wholesaling? New Construction?
Thanks for helping me be more specific, Mike.
There is not an accurate way to determine specific operating expenses for a given property in a given year. Unless you are looking at a large multi-family with a long history and excellent records, finding accurate expense data is almost impossible. The National Apartment Association does an annual survey of operating expenses for rentals. Their survey covers hundreds of thousands of rental units.
Since getting accurate data for a specific small multi-unit building is nearly impossible, I simply use 50% of the gross rents as the operating expenses. If you use 50%, you’ll be very close, if you have a building that is stabilized.