Property Analyzer (Ontario Specific)

[dominicrouse]

Searched all over the forums and nothing fit my question, so here goes a new topic...

I`ve started to view properties (duplex, triplex, fourplex in KWC & Guelph) and crunch numbers from the vendor agents. Not all have records to provide vacancy (as if they`d admit anyway) or repairs & maintenance cost so I`ve begun to use a range of percentages of collected gross monthly rent to asses cash flow.

What I`d like to begin is a feedback forum on what other active members are using, and also actually experiencing in the KWC & Guelph area for vacancy allowance, various property management % take on rents collected, and repair & maintenance costs (per unit if someone has averages)

Currently, I`ve got 4 positive cash flow properties ranging from 60 to 250 per month based on (1) 5% Property Mgmt, (2) 3.5% Vacancy Allowance, and (3) 4% Repairs & Maintenance. I`ve done a few with 10, 7, 8% (1, 2, 3) and just break even.

What`s your experiences?

Many thanks...

 

[dominicrouse]

Found another topic that points towards CHMC website for Rental Market Reports specific to vacancy rates per town/area!

Thanks Mark...

 

[housingrental]

Hi,

I do property management in Waterloo, and your numbers are ballpark correct though they can vary greatly with the property type and area. Also consistently colleting rents can be very difficult for certain property types.

Thank you,
Adam


QUOTE (dominicrouse @ Oct 26 2007, 02:13 PM) Found another topic that points towards CHMC website for Rental Market Reports specific to vacancy rates per town/area!

Thanks Mark...

 

[BobHudson]

I prefer to keeps things a tad simpler - 5% vacancy, 5% property management, $500/unit/year for maintenance. Your property management is the easiest to predict assuming that you have looked at a few property managers in your area. Maintenance is at your discretion most of the time but I have found 5% or $500/unit to work well at the property analysis stage. And vacancy? Does it really matter what the "average" is? If I saw an average of 2.4% in an area or 3.1%, I would still leave my analysis at 5%.

 

[dominicrouse]

Concerning vacancy rates, I`m moving forward with advice from Don that relates to lenders, specifically when they analyze the proforma during the mortgage application process. If the CMHC vacancy rate of an area, and for a particular rental building type, is 3%, then just double the number to 6%.

Also, depending on the lender, it may be prudent to check what rate they may have already assigned to a specific area, regardless of CMHC and/or actual market performance.