The Expenses section in IntellCRE helps you capture, forecast, and model property operating expenses. Whether you’re entering data manually, uploading a T12, P&L, or using the AutoEstimate feature, you have full flexibility to align expenses with your underwriting strategy.
This guide walks through the different ways to model operating expenses:
1. Getting Started
When setting up a new analysis, you’ll be prompted to upload documents such as:
T12 (Trailing 12 Months) financials
Rent Roll
Offering Memorandum (OM)
Profit & Loss statements
If you haven’t uploaded them yet, you can always upload directly in the Expenses section.
2. Entering Expenses
Option A: Type In Expenses
Add an expense category name (e.g., Utilities).
Choose a basis for the expense:
Annual
Monthly
Per Square Foot
Per Unit
% of Gross Operating Income (GOI)
% of Property Value
Enter the current expense value.
Enter proforma expense value (same or different from current).
Save your defaults if you prefer certain bases and for recurring expense types.
Tip 1: Property Taxes are modeled separately by default but you can add them as a new category and disable property taxes in the options for the section.
Tip 2: You can set your default categories of expenses in the platform Settings as well as default bases and values for these categories (i.e. Property management - 5% of GOI)
Option B: Upload Expenses
Upload a T12 (spreadsheet or PDF), and the system will automatically populate all expenses. Choose between parsing out individual line items or whole categories of expenses.
This is the fastest and most accurate way to load expenses when such documents are available.
Option C: Auto-Estimate Expenses
Use this option if you don’t have financials on hand.
The platform pulls live operational data from comparable properties in the same market and market averages to estimate expenses.
Ideal for quick underwriting or early-stage deal screening.
3. Modeling Property Taxes
Property taxes can be entered or estimated in several ways:
Direct Entry → Enter last year’s annual tax amount.
AutoEstimate → System calculates based on property value and local tax rates.
Advanced Tax Modeling → Enable advanced options to:
Set reassessment years (e.g., reassessment in Year 2)
Model reassessment upon sale
Apply tax credits
Adjust annual tax growth rate
4. Advanced Expense Options
Enable Advanced Options to unlock:
Per-Expense Growth Rates → Assign unique growth rates to individual expenses (e.g., Utilities +8%, Insurance +3%).
Expense Offsets → Delay pro forma expenses by several months (useful for ground-up developments or properties under renovation).
Tip: For ground-up development projects, set current expenses to zero and offset proforma expenses based on the development and stabilization schedule. I.e. if property starts stabilization in month 12 after acquisition data and fully stabilizes in month 24, offset proforma expenses by 18 months to accurately capture expenses in Year 2.
5. Renovation & CapEx Projects
Use the Renovation/Construction Expenses subsection to model renovations or capital projects:
Add a project name (e.g., Unit Rehab).
Enter the budget (total, per SF, or per unit basis).
Set the timeline (e.g., 6 months).
Specify if the project:
Affects vacancy (e.g., units offline during renovation)
Generates a rent premium (e.g., $200/unit increase after rehab)
Assign specific units to the project using the rent roll filters (e.g., only 1-bedroom units below $1,900 rent).
Add the Renovation & Capex Funding Method (source of capital)
When modeling renovation or CapEx projects, choose how they will be funded:
Cash Flow → Uses property’s monthly cash flow first; shortfalls are covered by working capital.
Working Capital → Costs are allocated upfront at acquisition.
Raised → Costs must be manually factored in elsewhere (e.g., additional acquisition costs, working capital, or financing assumptions).
CapEx projects (e.g., solar panels, EV chargers) differ because they do not have a timeline — costs are applied immediately after acquisition.
7. Expense Totals & Outputs
At the bottom of the section, you’ll see:
Total Current vs. Proforma Expenses
Expense Ratios (as % of GOI)
Cash Flow Previews (by opening the bottom panel on Expenses or Cashflow)
Tips & Troubleshooting
Always upload a T12 if available for the most accurate results.
Use AutoEstimate for quick “back-of-the-envelope” underwriting.
Double-check funding source selections for renovation/CapEx projects — this impacts acquisition assumptions and affects the return metrics.
Use the Reset button (top right) to clear and restart the section if needed.
Use the right side bar to confirm total current and proforma expenses and Net Operating Income (NOI) are correct
If you have any questions while working through this section, click the Support button in the platform or reach out to our team—we’re here to help!