Agenda Packets - 1998/03/02 - Laserfiche WebLink

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SILVERVIEW ESTATES GENERAL PARTNERSHIP SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PROJECTION ASSUMPTIONS FOR THE PERIOD COMMENCING JANUARY 1,1998 AND ENDING DECEMBER 31, 2012 SUMMARY OF SIGNIFICANT PROJECTION ASSUMPTIONS - Continued Vacancy The partnership anticipates that it will incur vacancies at an average rate of 5% each year. Additional vacancies were projected for the first twelve ( 12 ) months of operations due to the rent-up stage. Combined Rental Operations The projected marketing, administrative, operating and maintenance expenses are based on historic costs from experienced, professional management organizations . The partnership anticipates expenses will be increased 5% over the costs of the prior year due to inflation. Combined Marketing Expenses Advertising expense will be incurred in order to achieve near 100% occupancy. A credit report will be run on each new residential tenant or commercial lessee to check current credit and any criminal activities . A portion of the credit check fee may be paid by each resident applying to rent an apartment of the 82-unit senior housing •Duildin . Combined Administration Expenses Salaries, are the largest expense in this category. Full time permanent employees will be hired to manage Silverview Estates . Additional responsibilities of on-site personnel include leasing, maintenance, and grounds maintenance. The use of outside contract services will be limited. Fire and liability insurance is based on an estimate by State Farm Business Insurance. Workers compensation is based on wages and apartment value multiplied by a rate of 10 . 5% . Combined Utilities Expenses Operating expenses, which includes all utilities, are based on the current utilities ' rates and square footage of the building. Combined Repair & Maintenance Expense Repair Maintenance expense will be based on estimated sub-contracting contracts for the various services incurred. Each service listed will be reviewed and cost estimated based on a building of this size. Combined Management Fees AmkA property management fee of 5% of the net rental income of each project on a monthly basis will be paid for management. The manage- ment fee will pay for services incurred by a professional independent accredited management organization. The management company will have significant experience in senior housing and retail office to insure maximum rents and administrate policy and procedures . (5)