That makes forecasting, and the resulting planning and control more important. We included a spreadsheet expense forecast model with the report. We also added a replacement reserve forecasting model to help subscribers customize reserve budgets to their situation. In absolute dollars, repairs and maintenance costs climbed the most in the past ten years, followed by capital expenses, utilities, and real estate taxes. At least spending money on repairs, maintenance, and capital items adds value and longevity to an apartment property.
Utilities are another matter.
Investors are scrambling to control costs, particularly water and sewer charges, which are climbing at double-digit rates in some communities. Most of the cost of electricity is already paid by the consumer, but their budget capacity could ultimately be a rent issue. About the research This year s edition of The Apartment Expense Report is based on our audit of last year s operating statements for 642 properties, totaling 68,099 units. The report found a number of significant trends this year, and discusses them by sub-market, property size, and age. Some are discussed here.