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Repair and Maintenance Ratio Calculator

Repair and maintenance spend is the first line most underwriters stress test. Too low and the property has deferred maintenance the new owner will inherit; too high and there's an operating problem or asset is past its useful life. This calculator ratios R&M to EGI and checks per-unit and per-SF against industry benchmarks.

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R&M ratio (% of EGI)

6.3%

Per unit / year

$1,125

Per SF / year

$1.41

Benchmark low ($550/unit)

$22,000

Benchmark high ($850/unit)

$34,000

How the math works

Repair and maintenance spend should land between roughly $550 and $850 per unit per year on stabilized multifamily. R&M ratio to EGI is another read on whether spend is in line — 6-9% is typical. Very low R&M usually means deferred maintenance that will hit capex later.

R&M does not include planned capex replacements (roof, HVAC, parking lot). That's a separate replacement reserve line.

How to Use

  1. Enter annual R&M spend from the T12 P&L.
  2. Enter effective gross income for the same period.
  3. Enter unit count and rentable square footage.
  4. Compare the ratios against typical multifamily benchmarks.

Frequently Asked Questions

What counts as R&M?

Paint, patch work, small plumbing and electrical, HVAC service calls, pest control, appliance repair, landscaping breakage, make-ready touch-up. Roof replacement, HVAC replacement, and paving are capex — not R&M.

Why does R&M grow with age?

Older buildings have more component failures. A 1970s multifamily can run $900-1,100 per unit per year on R&M alone. Newer construction settles around $450-600.

Low R&M — good or bad?

Often bad. It suggests the owner is deferring work. When you take over, expect a capex surge for items that should have been caught during regular maintenance.

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