Space Expenses

Rent and mortgage payments are just two types of expenses associated with occupying a space. You must also consider the cost of insurance, property taxes, moving expenses, utilities, etc.

Your real estate agent or the current property owner should provide you with accurate dollar figures for most of these costs. Be sure that any bills or statements shown to you are recent (especially the property tax bill, if applicable). Also, Chapters 17-22 provide resources and advice on how to locate information on property taxes, utility charges and insurance for your space, property and art work.

Keep in mind that a residential lease will typically only include the cost of your rent, utilities, insurance and personal living expenses, which will drastically reduce your expenses. If you have a commercial or industrial lease, your expenses might be as much as they would be if you had purchased the property, especially if you have a net lease.

The remaining worksheets in this chapter will help you to calculate the full cost of your proposed space. Worksheets are divided into two sections – Leasing Information and Buying Information. As you complete them, consider:

• Annual totals for bills. Many bills, including property taxes and utilities, are levied over different periods of time. Some might cover a two-month period, while others are monthly or yearly. Heating bills fluctuate on a seasonal basis.
  
  To estimate the cost of your monthly bills, add an entire year’s worth of bills together, then divide by 12. The remaining figure represents an average cost of the bill over the year.
  
  
• Factor in increases in utility charges and property taxes over the next five years.
  
  
• To get a better idea of both your leasing and buying options, complete both sets of worksheets.