Build a rental budget you can explain.
A useful rental analysis starts with evidence for each input. This checklist helps you collect the documents, separate recurring costs from purchase cash, and avoid counting the same expense twice.
Before you enter the rent
Use lease agreements, a rent roll or clearly labelled property-specific estimates. Record which utilities each tenant pays and whether parking or other income is already included in the rent you enter. A listing’s gross income is not the same as collected income.
Set a vacancy allowance explicitly. The calculator uses it as a reduction in scheduled revenue; do not also enter that same allowance as an operating expense. Suite rent counts only while its suite option is enabled.
- Confirm each main unit and suite is represented once.
- Identify concessions, arrears or known turnover separately when supporting the rent assumption.
- Keep hypothetical market rent distinct from current contracted rent.
Recurring costs for the whole property
Enter annual property tax and insurance in their annual fields. Enter owner-paid utilities, condo fees and other ongoing costs monthly. For multiple units, fixed property expenses are entered once for the building. Use a current bill, quote or budget whenever available.
Management is applied to rent collected after vacancy; maintenance and reserves are applied to scheduled rent. If you include a percentage allowance, avoid also including the same work in another operating-cost field. If a condo fee includes some utilities, check which additional costs the owner actually pays.
- Property tax notice and insurance quote.
- Utility bills and lease utility responsibilities.
- Condo budget, reserve information and any known assessment cash needs.
- Management contract, maintenance history and major-system condition.
Purchase cash and future replacements
Down payment, legal fees, inspection, agency fees, initial repairs, renovations and other known closing costs belong in upfront cash. Use quotes for the specific transaction. This calculator does not automatically add registration fees, lender charges, mortgage insurance or taxes.
Routine maintenance and a capital reserve answer different budgeting questions. A reserve allowance reduces modelled cash flow; it is not a forecast of exactly when a roof, boiler or other system will fail. A known near-term repair may require additional cash that a smooth percentage allowance does not capture.
For a hypothetical replacement budget, $12,000 spread over ten years is $1,200 per year before inflation or investment earnings. This is an arithmetic example, not a recommended reserve amount. Use inspections, contractor estimates and the building’s actual condition to support the budget.
Cash budgeting is different from tax reporting
The report is a before-tax cash analysis. Mortgage principal uses cash and builds equity, even though it is treated differently from interest for tax purposes. A reserve allowance is a budgeted cash outflow in the model, not a calculation of a tax deduction.
CRA distinguishes current and capital expenses. Keep invoices and discuss treatment with a qualified tax professional. The calculator does not prepare a tax return, calculate CCA or determine the deductibility of a particular expense.
Bring a clear analysis to the conversation
Save the report after entering the supported base case. It includes the inputs, first-year coverage, combined stress scenario and long-term projection. Mark assumptions that still need a quote or document before reviewing the analysis with a mortgage or real estate professional.
The calculator does not send the report or your inputs when you click a consultation link. Choose what to share through your own email or the optional chat.