Out to Put a Dent in the Multifamily Universe

Apartment Budgeting: Damages

From time to time people vacate apartments and believe it or not they leave the space damaged. It could be anything from a cigarette burn on the kitchen counter top to fist hole in the bedroom wall. Whatever the case may be; it is considered damage and it can and should be charged for.

Damages DefinedMove Out Charges

Fees associated with damages made to an apartment. Charges are applied at the time of move out and are taken out of apartment security deposits. Nearly every company I have worked with and for has a standard set of charges that are applied for specific damages. For example, if the apartment is left full of trash and debris, most companies will charge a fee to bag (per bag) and remove it. If there are pet stains on the carpet – depending on the extent of the damage a charge will be levied. If it is extensive and the carpet has to be replaced charges might apply for a full carpet replacement. There really is no end to what you can charge for provided it is within reason and according to city, state and national law.

Budget Strategy

This one is fairly straight forward. The line is typically built on twelve months of trailing information given the fact that it can and will fluctuate over any bit of time. You take the full twelve months of trailing numbers, add them up and average them. You can then straight line the information. That is to suggest that you can use the average number to budget each month. Another strategy might be to average the numbers quarterly so as to catch seasonality. Either way is appropriate.

Your getting pumped for budget season multifamily maniac,

M

 

Pic Props to ITSOGS

About Mike Brewer

Out to put a dent in the multifamily universe. Love compelling conversation...