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re: Maintenance and repairs on office rental property

Posted on 2/18/16 at 12:00 pm to
Posted by yellowhammer2098
New Orleans, LA
Member since Mar 2013
3850 posts
Posted on 2/18/16 at 12:00 pm to
I would definitely get historical financials on the property. This will be the best indicator of what to expect for the future of the property in regards to all income and expenses.

I would call a local commercial appraiser. Obviously if you personally know one they'd be likely to help out. An appraiser you don't know may help you out if they're nice. They can most likely give you comps and some income/expense information as well.

ETA: Just a general idea, you're probably looking at around $5 per square foot of expenses (can obviously vary based on age/location/previous upkeep). Taxes will be whatever the tax amount is. Insurance $0.30, Repairs/Maintenance $0.50, Cleaning/Janitorial $0.75, General/Administrative $0.25 and Management fee will vary from 3%-5% of Effective Gross Income (Income after vacancy). All of that being per square foot.
This post was edited on 2/18/16 at 12:06 pm
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