0% vacancy
The collection loss is 10% of GPI
Although there is very limited parking in the area, residents are not charged for parking.
There is one spot for each apartment home.
Currently, the residents can reserve the clubhouse free of charge
There are 180 storage lockers on the ground floor which are currently complimentary to residents on a first-come first-serve basis
Cats and dogs weighing less than 50 lbs. are welcome but are subject to a $150 non-refundable pet fee upon lease execution. Currently, there are 168 non-refundable pet fees collected for this year (14 non-refundable fees per month). No other pet fees are charged.
There are no expense reimbursements for this property
Average monthly operating expenses are: Legal and Professional Fees, $13,150, maintenance & repairs, $65,800, marketing, $19,720, payroll $23,750, landscaping, $6,790, pest control, $1,800, trash removal, $9,900, supplies, $650 telephone and internet, $2,125, electricity, $45,100 water & sewer, $16,520, heating fuel, $43,010
Current management fee is 4% of EGI
In addition, real estate taxes of $517,222 are divided and paid twice a year, in April and October, and property insurance premiums totaling $208,000 are paid once a year in February.
There are currently not enough funds for reserves based on before-tax cash flow requirements, but capital expenditures for this year are $23,100 for parking lot restriping that was greatly needed for safety reasons. This work is paid in September.
The current loan terms are a 30-year fixed loan on $35,879,000 at an 6.00% interest rate. This equates to monthly debt service of $215,113.
The prevailing cap rate for this type of property in the area is 5.50%
What are current year total annual operating expenses?
3,946,640
268,442
3,221,308
