Explanation of Estimates:
- 'Janitor": As part of their option-to-buy agreements, one tenant in each building will be credited with $200 per month in return for their performance of basic cleaning duties for all common areas.
"Vacancy & Bad Debt": These figures can be expected to be substantially below the industry averages that are show because of the nature of the tenants who are selected.
- "Taxes": Because of the depressed nature of the neighborhoods selected, the City of Philadelphia is unlikely to eliminate the tax abatement program for at least the forseeable future.
- "Repairs & Reserves": As essentially new construction, these amounts should be available for roll-over to the next year
"Advertising": This expense is only required for the first year and only for buildings that are promoted under any of Urban Fair Trade's brands.
If tenants are entitled to a 2% discount for paying their rent early or on time, that discount will be subtracted from this expense's amount.