Projection assumptions
Expense Growth %
Editable annual operating-expense change assumption used in the projection.
Why Expense Growth % matters
Taxes, insurance, utilities, labor, repairs, and other expenses can move differently from rent and from one another. Use current evidence and model expense growth that equals or exceeds rent growth as a downside case.
How to check Expense Growth % before you rely on it
Check the history of the largest lines separately: pull several years of property-tax bills, ask the insurance agent what renewals have done in the area, and look at utility and labor trends locally. Expenses have often risen faster than rent, so model a case where expense growth exceeds rent growth and see what the tenth year looks like. If the property cannot absorb that case, it is thinner than the base case suggests.
Related terms
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Where Expense Growth % shows up in TrueCap
Projection assumptions feed the 10-year view: rent and expense growth, appreciation, and the exit costs used in the sale scenarios. They do not change the first-year verdict; they change what the deal looks like over time, which is why they are kept editable and labeled separately from the current-year inputs.