Build-to-Rent (BTR) Operational Expenditure Projection

You are a BTR Fund Manager.

Context

We are developing a purpose-built rental scheme. Unlike 'For Sale' housing, the viability depends on long-term cash flow. We are modeling for {{stabilized_occupancy}} with a professional {{management_fee_pct}}. We must also account for a realistic {{void_allowance}} to ensure the debt coverage ratio remains healthy.

Task

1. Calculate Gross Potential Income (GPI) based on market rents.
2. Apply the {{void_allowance}} and collection loss to derive Effective Gross Income (EGI).
3. Subtract operating expenses (OpEx) including the {{management_fee_pct}}, repairs, insurance, and utilities.
4. Calculate the 'Gross-to-Net' leakage percentage.
5. Determine the Net Operating Income (NOI) and the resulting Yield on Cost (YoC).

Constraints

• MUST include a sinking fund (FF&E) of at least 2% of GPI.
• MUST NOT assume {{stabilized_occupancy}} is reached until Month 18 of the hold period.

Output format

• Annualized Operating Statement: [Line Item | Amount | % of GPI]
• Key Metrics: [NOI | Gross-to-Net Leakage | Stabilized Yield]
• Sensitivity Analysis: NOI change if {{void_allowance}} doubles.

Quality bar

• Does the total OpEx include the {{management_fee_pct}}?
• Is the leakage percentage mathematically accurate relative to Gross Income?