2001 Income and Expense Survey.NAA NAA Nomina Anatomica Avium. has completed its 11th Survey of Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and Expenses in Rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. Apartment Communities for 2001 (data for 2000). Major findings in this survey of the professionally managed rental apartment industry continue to show a high level of performance. A record total of 3,765 properties containing 867,491 units are represented in this report. Reporting of the data is composed of 3,238 market rent properties containing 786,636 units and 527 subsidized sub·si·dize tr.v. sub·si·dized, sub·si·diz·ing, sub·si·diz·es 1. To assist or support with a subsidy. 2. To secure the assistance of by granting a subsidy. properties containing 80,856 units. Data is presented for four types of properties in this report. Garden and high-rise structures each segmented further into individually metered and master-metered utilities properties. Responses are dominated dom·i·nate v. dom·i·nat·ed, dom·i·nat·ing, dom·i·nates v.tr. 1. To control, govern, or rule by superior authority or power: by garden properties with individually metered utilities. They represented 90 percent of the market rent properties and 66 percent of the subsidized properties. The analysis is, therefore, centered on the garden properties with individually metered utilities. Averages sizes of these garden properties were 241 units for the market rent units and 150 units in subsidized units. Rentable floor area averaged 876 square feet for market rent apartments and 857 square feet for the subsidized units. This report contains detailed data summarized for six geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. regions and metropolitan areas with at least 10 properties reported. Seventy-two metropolitan areas met the separate reporting requirement for market rent properties. Sufficient numbers of subsidized properties were submitted for thirteen metropolitan areas. Data is presented in three forms: dollars per unit, dollars per square feet of rentable floor area and as a percentage of GPR (Ground Penetrating Radar) A UWB-based technology that locates objects buried underground. It is used to locate buried lines, storage tanks, pipes and conduits as well as to determine the structural integrity of the ground underneath a road or runway. . Market Rent Properties Net Operating Income Respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. reported a healthy rental apartment market based in their operating income and expense data. Net operating income (NOI NOI Net Operating Income NOI Notice of Intent NOI Nation of Islam NOI Notice of Inquiry NOI Neuro Orthopaedic Institute NOI New Organizing Institute NOI Notice of Interest NOI No Offense Intended NOI National Olympiad in Informatics ) averaged 57.7 percent of gross potential rent in individually metered garden apartments reported in this year's survey. NOI was down from the 58.8 percent average reported in the 2000 survey. NOI rose from 43.8 percent for 1998 data to the peak in the 2000 survey. NOI in the current survey in dollars per unit, was $4,800 and $5.48 on a dollars per square foot basis. These were records and indicate that the large increase in number of properties reported in the survey limits comparisons between the last two surveys. NOI regionally measure in percent of GPR terms ranged from a high of 64.3 percent in the Western states region to a low of 53 percent in the Southwest Southwest or south west is the ordinal direction halfway between south and west, the opposite of northeast. Southwest or south west may also refer to:
Gross Potential Rent GPR in the survey data tables is defined here on a post fiscal year basis. It is the sum of rent revenue collected and revenue losses. Average GPR for individually metered garden apartments was $8,335 per unit ($694 monthly). Translated into per square foot of floor area, it was $9.51. Median GPR was $7,638 ($637 per month). The range went from a high of $28,913 ($2,409 per month) to a low of $3,527 ($294 per month). Rent Revenue Collected Rent Revenue Collected averaged $7,606 per individually metered garden property unit annually last year. Measured on a per square foot basis, rent revenue averaged $8.68. Revenue Losses Data for revenue losses was reported in three categories: those due to vacancies, collections and concessions. Vacancy VACANCY. A place which is empty. The term is principally applied to cases where an office is not filled. 2. By the constitution of the United States, the president has the power to fill up vacancies that may happen during the recess of the senate. losses for individually metered market rent garden properties averaged 6 percent of GPR ($501 per unit in the property, $0.57 per square foot). Collection losses averaged 0.9 percent of GPR ($72 per unit, $0.08 per square foot). And losses from rent concession CONCESSION. A grant. This word is frequently used in this sense when applied to grants made by the French and Spanish governments in Louisiana. averaged 1.9 percent of GPR ($156 per unit in the property, $0.18 per square foot). Other Revenue Collected Other revenue collected from operating sources includes receipts from onsite laundries, cable, telephone systems, parking fees and other charges for services and amenities. These other operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. averaged $412 per unit ($0.47 per square foot unit) for individually metered garden properties reported in the survey. Other non-rent operating revenues ranged from none to a high of $5,918 per unit. Median other operating revenues was $352 per unit. Total Operating Expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. Rental apartment management firms continued to be successful in controlling operating expenses last year. Total operating expenses for individually metered garden properties in the survey averaged $3,210 per unit ($3.66 per square foot). They accounted for 38.5 percent of gross potential rent. Operating expenses increased from the $2,949 per unit ($3.46 per square foot) recorded in last year's survey. Economic Vacancy Economic vacancies were at an 8.75 percent rate for individually metered garden properties in the survey, essentially unchanged from the 8.7 percent recorded in the 2000 survey Economic vacancy is a measure of potential income not realized over a given period of time--a year in this survey. It offers another useful measure of the economic vitality vi·tal·i·ty n. 1. The capacity to live, grow, or develop. 2. Physical or intellectual vigor; energy. of a property and local markets. It is defined as the difference between rent revenue collected and GPR expressed as a percentage of gross potential rent. Turnover Rates Turnover rates averaged 65 percent of total units among the individually metered garden apartment properties reported in the survey for the second straight year. Turnover is in the middle of the 59 percent to 69 percent range recorded over the history of this survey. Age of Property NOI measured in percentages of gross potential rent was the lowest for the oldest properties reporting in the survey. It was relatively the same for the three other age groupings used in this analysis. It was the lowest for those 20 or more years old at 52.7 percent. The highest at 60.5 percent for those five to nine years old, followed by 59 percent for those less than five years old and for those 10 to 19 years old. Average GPR in dollars per unit terms moves down from the newest to oldest properties in order. It falls from $10,945 per unit for properties less than five years old to a low of $7,610 for those 20 or more years old. Repair and maintenance costs could be expected to rise with age of a property. A low average of $304 per unit ($0.31 per square foot) was reported for properties less than five years old. A high of $430 per unit ($0.48 per square foot) occurred for those 20 or more years old. Capital expenditures were also significantly lower for the newest properties. They averaged $311 per unit ($0.31 per square foot for those properties less than five years old. The highest average was reported for properties 10 to 19 years of age at $652 per unit ($.78 per square foot). Size of Property NOI rose as the size of properties became larger on both dollars per unit and dollars per square foot basis. Average NOI was the lowest in properties with fewer than 100 units at $3,471 per unit, $4.91 per square foot. Among the largest properties, 500 or more units, it was the highest at $4,959 per unit, $5.63 per square foot. The higher NOIs as property size rose did not come from scale economies in operating costs operating costs npl → gastos mpl operacionales . Properties with less than 100 units had the lowest average total operating costs at $2,758 per unit. The highest operating costs occurred in properties with 100 to 249 units at $3,294 per unit. The next highest operating costs were among the properties at $3,248 per unit followed by the $3,187 per unit for those with 250 to 499 units. None of the cost categories showed trends of either rising or falling as property size rose. Rising NOI with increasing property size, among the properties reporting in the survey, is more of a function of higher rents that was present when properties became larger. Subsidized Properties Subsidized garden apartment properties with individually metered utilities tend to have fewer units and less floor area. They contained an average of 150 units versus 241 units for market rent properties of the same type. These subsidized properties had an average of 857 square feet of floor area versus 876 square feet for the market rent properties. Revenues GPR averaged $6,634 ($7.65 per square foot) annually This is 20 percent under the $8,335 per unit ($9.51 per square foot) for their market rent counterparts. Rental revenues averaged $6,143 per unit ($7.08 per square foot). Other operating revenues in subsidized properties are significantly less than those for market rent properties. They averaged $189 per unit ($0.22 per square foot) for the subsidized properties versus $412 per unit ($0.47 per square foot) for the market rent units. Operating Expenses Operating expenses in subsidized properties were close to those for market rent properties. Subsidized properties reported in the survey had total operating costs averaging $3,229 per unit ($3.72 per square foot). The market rent property average was $3,210 per unit ($3.66 per square foot). Net Operating Income Subsidized properties with their lower rents had a lower average NOI than the market rent properties reporting in the survey. NOI for subsidized properties in the survey averaged 46.8 percent of gross potential rent versus 57.7 percent for the market rent properties. The comparisons on a per unit basis were $3,103 versus $4,808, and $3.72 per square foot versus $5.49. Economic Vacancies Economic vacancy rates tend to be lower in subsidized properties with their lower rents. A 7.39 percent average rate was calculated for the subsidized individually metered garden properties versus 8.75 percent for market rent units. Turnover Rates Occupants of subsidized apartments have lower income and fewer housing choices in most local market and are less likely to move. The turnover rate in individually metered subsidized units was 41 percent versus 65 percent for market rent units. ALL MARKET RENT PROPERTIES OPERATING INCOME & EXPENSE DATA
INDIVIDUAL METERED PROPERTIES
TOTAL GARDEN HIGH-RISE
Number of Properties 3,074 2,917 157
Number of Units 745,441 702,290 43,151
Average Number of Units/Property 242 241 275
Average Number of Square Feet/Unit 873 876 826
Turnover rate in % 65% 65% 53%
$ Per $ Per % of $ Per $ Per
Revenues Unit Sq. Ft. GPR Unit Sq. Ft.
Gross Potential Rent 8469 9.70 100.0% 8335 9.51
Rent Revenue Collected 7739 8.86 91.4% 7606 8.68
Losses to Vacancy 504 0.58 5.9% 501 0.57
Collection Losses 71 0.08 0.8% 72 0.08
Losses to Concessions 156 0.18 1.8% 156 0.18
Other Revenue 430 0.49 5.1% 412 0.47
Total Revenue 8169 9.35 96.5% 8018 9.15
OPERATING EXPENSES
Salaries and Personnel 795 0.91 9.4% 781 0.89
Insurance 89 0.10 1.1% 89 0.10
Taxes 759 0.87 9.0% 741 0.85
Utilities 403 0.46 4.8% 393 0.45
Management Fees 288 0.33 3.4% 280 0.32
Administrative 148 0.17 1.7% 141 0.16
Marketing 14 0.16 1.7% 141 0.16
Contract Services 268 0.31 3.2% 264 0.30
Repair and Maintenance 391 0.45 4.6% 380 0.43
Total Operating Expenses 3283 3.76 38.8% 3210 3.66
NET OPERATING INCOME 4886 5.59 57.7% 4808 5.49
CAPITAL EXPENDITURES 564 0.65 6.7% 561 0.64
% of $ Per $ Per % of
Revenues GPR Unit Sq. Ft. GPR
Gross Potential Rent 100.0% 10647 12.88 100.0%
Rent Revenue Collected 91.2% 9901 11.98 93.0%
Losses to Vacancy 6.0% 544 0.66 5.1%
Collection Losses 0.9% 59 0.07 0.6%
Losses to Concessions 1.9% 142 0.17 1.3%
Other Revenue 4.9% 719 0.87 6.8%
Total Revenue 96.2% 10620 2.85 99.7%
OPERATING EXPENSES
Salaries and Personnel 9.4% 1026 1.24 9.6%
Insurance 1.1% 101 0.12 0.9%
Taxes 8.9% 1041 1.26 9.8%
Utilities 4.7% 570 0.69 5.4%
Management Fees 3.4% 414 0.50 3.9%
Administrative 1.7% 256 0.31 2.4%
Marketing 1.7% 153 0.18 1.4%
Contract Services 3.2% 337 0.41 3.2%
Repair and Maintenance 4.6% 560 0.68 5.3%
Total Operating Expenses 38.5% 4458 5.39 41.9%
NET OPERATING INCOME 57.7% 6162 7.46 57.9%
CAPITAL EXPENDITURES 6.7% 608 0.74 5.7%
MASTER METERED PROPERTIES
TOTAL GARDEN HIGH-RISE
Number of Properties 164 106 58
Number of Units 41194 29629 11565
Average Number of Units/Property 251 280 199
Average Number of Square Feet/Unit 855 861 838
Turnover rate in % 56% 61% 45%
$ Per $ Per % of $ Per $ Per
Revenues Unit Sq. Ft. GPR Unit Sq. Ft.
Gross Potential Rent 10546 12.34 100.0% 9775 11.35
Rent Revenue Collected 9795 11.46 92.9% 8949 10.39
Losses to Vacancy 515 0.60 4.9% 562 0.65
Collection Losses 92 0.11 0.9% 108 0.13
Losses to Concessions 144 0.17 1.4% 155 0.18
Other Revenue 504 0.59 4.8% 487 0.57
Total Revenue 10299 12.05 97.7% 9436 10.96
OPERATING EXPENSES
Salaries and Personnel 1069 1.25 10.1% 1010 1.17
Insurance 131 0.15 1.2% 107 0.12
Taxes 793 0.93 7.5% 657 0.76
Utilities 1222 1.43 11.6% 1211 1.41
Management Fees 464 0.54 4.4% 406 0.47
Administrative 215 0.25 2.0% 205 0.24
Marketing 137 0.16 1.3% 153 0.18
Contract Services 427 0.50 4.0% 340 0.40
Repair and Maintenance 638 0.75 6.1% 510 0.59
Total Operating Expenses 5096 5.96 48.3% 4600 5.34
NET OPERATING INCOME 5203 6.09 49.3% 4836 5.62
CAPITAL EXPENDITURES 863 1.01 8.2% 732 0.85
% of $ Per $ Per % of
Revenues GPR Unit Sq. Ft. GPR
Gross Potential Rent 100.0% 12522 14.94 100.0%
Rent Revenue Collected 91.6% 11962 14.27 95.5%
Losses to Vacancy 5.8% 393 0.47 3.1%
Collection Losses 1.1% 52 0.06 0.4%
Losses to Concessions 1.6% 115 0.14 0.9%
Other Revenue 5.0% 549 0.65 4.4%
Total Revenue 96.5% 12510 14.93 99.9%
OPERATING EXPENSES
Salaries and Personnel 10.3% 1220 1.46 9.7%
Insurance 1.1% 192 0.23 1.5%
Taxes 6.7% 1142 1.36 9.1%
Utilities 12.4% 1251 1.49 10.0%
Management Fees 4.2% 614 0.73 4.9%
Administrative 2.1% 241 0.29 1.9%
Marketing 1.6% 94 0.11 0.8%
Contract Services 3.5% 648 0.77 5.2%
Repair and Maintenance 5.2% 968 1.15 7.7%
Total Operating Expenses 47.1% 6369 7.60 50.9%
NET OPERATING INCOME 49.5% 6142 7.33 49.0%
CAPITAL EXPENDITURES 7.5% 1197 1.43 9.6%
To order the 2001 Income and Expense Survey call NAA at 703/518-6141. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. J. Sheehan People whose surname is or was Sheehan include:
An economist is an expert in the social science of economics.[1] . He can be reached at 703/893-9185 or by e-mail at gdad@erols.com. |
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