What's a good expense ratio for 40 unit apartment in Dallas, TX?

I have spoken with local owners who run at about 50% expense ratios but I'm also hearing experts say 35% of gross collected rent is ideal.
In Property Management - Asked by Patrick W. - Oct 1, 2008
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Jeng L.
Broker/Agent
Houston, TX

It depends on the apartment if it is an all bills paid (60% expense ratio) or individually metered property (40% expense ratio). The age of the property is also a factor in the ratios. At 35% expense ratios, it is probably a newer property with well organized owner/management staff or the seller is hiding expenses to make the Net Operating Income higher.

Nov 21, 2008
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