Is 20% of gross rents a fair estimate to calculate the total for maintenance & vacancy, for a 1940s house kept up well?
Thanks
If I recall correctly, most apartment complexes budget 40-45% for all gross rents expenses except for debt service - so that would include vacancy, maintenance, etc. However I personally come in well below that figure.
I’ve heard the 50% rule here, and if you move escrow items like insurance and taxes into the 50% category it’s not far off. Personally I’m probably closer to 30% but I have nicer rentals and am doing my own management.