Need some help from anyone in the Apartment development industry
I was asked to review a development proforma for a planned 102 unit apartment complex in Florida.  I have been able to get most information from just googling (sales cap rates, vacancy in the area) and working with the local municipalities (impact fees per key) but there are some things I honestly don't know.  Any help would be greatly appreciated!

1. Operating expenses as a % of Gross income?
2. Anticipated income from the leasing of garages (not included with apartment)?
3.  Any guesses on payroll &amp; Benefits for a 102 unit complex?  The developer has $100k in there plus 4% of Gross Revenues but this seems low?
5. Insurance per key (florida, non costal, non flood-zone.

Thanks everyone!


[{"id": "c92ookr", "text": "1. My rule is a minimum 38% to 42% of gross income for standard multifamily property quality, however it can increase significantly if the quality is higher.\n\n2. What I generally do in these situations is develop a list of comparable properties in the area.  I then call each property, posing as a prospective tenant and ask about rents and amenities offered at the properties.  Through that conversation you should be able to get the extra fee per month for parking.  Also, if this development is in a major city there are probably many apartment finder companies that can help you with your research.  Just call saying that you are moving to the city and are looking at potential places.\n\n3. For a 102 unit complex, $100K seems appropriate.  The \"4% of Gross Revenues,\" which I assume is the management fee seems appropriate as well.\n\n4. This is one that I don't have a ton of experience on, because our company has an on-staff insurance consultant.    I think you can call an insurance company and get a soft quote from them, by giving them details on the property, but don't hold me to that.  \n\n\nThis is the best I can do with the details you have provided. If you need more help, but don't want to share certain details of the project to all of the internet, PM me an I am more than willing to help!\n\nEDIT: For number one, I was mistaken in saying it can increase significantly.  I should have said it can vary significantly.", "replies": [{"id": "c92puf3", "text": "I appreciate your help Kazmaniandevil!\n\nEdit: I also found out that we got a full market analysis from the bank when they gave us our lending terms sheet, I was not provided with this when first asked to review.  That solves #1!", "replies": [], "depth": 2}, {"id": "cbn3cme", "text": "When you say your company has an on-staff insurance consultant, do you mean he or she is your own in-house insurance broker?  How much of a savings do you achieve in the way of insurance premiums by using someone working for your company as opposed to an independent broker?", "replies": [], "depth": 2}], "depth": 1}]