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- $0.93 Cents of Every $1.00 Collected Cover Operational Expenses for Owners.
Topic: $0.93 Cents of Every $1.00 Collected Cover Operational Expenses for Owners.
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$0.93 Cents of Every $1.00 Collected Cover Operational Expenses for Owners.
Just 7 cents are returned as profit for property owners, according to research from the National Apartment Association’s Dollar of Rent report.
Profit: $0.07
There is a common misconception that rental housing providers enjoy large profit margins. In reality, only 7 cents of every dollar are returned as profit to owners. This slim margin underscores the challenging financial pressures that the rental housing industry faces.
Operating Expenses: $0.27
From utilities to insurance and ongoing maintenance, 27 cents cover these essential operating expense.
Mortgage Payments: $0.46
A significant portion (46 cents) goes directly to cover the property's mortgage, ensuring the property remains available for residents.
Property Taxes: $0.11
Eleven cents of every dollar of rent go towards taxes, which finance community programs such as schools, emergency services, parks and other local services.
Employee Payroll: $0.07
Payroll for community staff, from property managers to maintenance teams, collectively accounts for 7 cents of every dollar of rent. Their hard work and dedication are what keeps every community thriving.
Capital Expenditures Reserves: $0.02
For future upgrades and significant repairs, owners allocate 2 cents to capital expenditures reserves. By doing this, they are future-proofing their communities and ensuring quality housing for their residents.
On average, 93 cents of every rent dollar collected by property owners covers essential operational expenses, with only 7 cents returned as profit, according to updated research from the National Apartment Association (NAA).
Data in the report is based on 2022 operating statements from 9,263 rental properties with five or more units securing loans in Freddie Mac CMBS.
lnkd.in/gbaTApmt
Sources: National Apartment Association, Thirty Capital Performance Group, weareapartments.org
Just 7 cents are returned as profit for property owners, according to research from the National Apartment Association’s Dollar of Rent report.
Profit: $0.07
There is a common misconception that rental housing providers enjoy large profit margins. In reality, only 7 cents of every dollar are returned as profit to owners. This slim margin underscores the challenging financial pressures that the rental housing industry faces.
Operating Expenses: $0.27
From utilities to insurance and ongoing maintenance, 27 cents cover these essential operating expense.
Mortgage Payments: $0.46
A significant portion (46 cents) goes directly to cover the property's mortgage, ensuring the property remains available for residents.
Property Taxes: $0.11
Eleven cents of every dollar of rent go towards taxes, which finance community programs such as schools, emergency services, parks and other local services.
Employee Payroll: $0.07
Payroll for community staff, from property managers to maintenance teams, collectively accounts for 7 cents of every dollar of rent. Their hard work and dedication are what keeps every community thriving.
Capital Expenditures Reserves: $0.02
For future upgrades and significant repairs, owners allocate 2 cents to capital expenditures reserves. By doing this, they are future-proofing their communities and ensuring quality housing for their residents.
On average, 93 cents of every rent dollar collected by property owners covers essential operational expenses, with only 7 cents returned as profit, according to updated research from the National Apartment Association (NAA).
Data in the report is based on 2022 operating statements from 9,263 rental properties with five or more units securing loans in Freddie Mac CMBS.
lnkd.in/gbaTApmt
Sources: National Apartment Association, Thirty Capital Performance Group, weareapartments.org
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Posted 7 months 1 week ago
