Budgets

You are a property developer who owns an apartment building with $160$ apartments. In $2023,$ your occupancy rate was $90\%,$ which worked out to $1,728$ rental months. $(160$ units x $12$ months x $90\%).$ Average rent was $$3,500$ per month.

You also rent parking spots and storage lockers monthly, using the same formula. You have $65$ storage lockers and $180$ parking stalls. In $2023,80\%$ of the storage lockers were rented, equalling $624$ rental months. Rent for the storage lockers is $$90\mathrm{.}00$ per month. All $180$ parking stalls were rented $100\%$ of the time, making $2,160$ rental months, at a rate of $$75\mathrm{.}00$ per month.

Variable costs for $2023$ were:

Garbage collection $$22\mathrm{.}00$ per unit per month

Property Management fees $9\%$ of total gross revenue

Unit repairs and maintenance $$25\mathrm{.}00$ per unit per month

Expenses

Landscaping $ $40,000\mathrm{.}00$

Building Repairs & Maintenance $ $80,000\mathrm{.}00$

Depreciation $ $1,500,000\mathrm{.}00$

Insurance $ $250,000\mathrm{.}00$

Building Caretaker $ $60,000\mathrm{.}00$

Snow removal $ $25,000\mathrm{.}00$

Heat$/$water $ $350,000\mathrm{.}00$

Security $ $120,000\mathrm{.}00$

You borrowed $$50$ million to finance building the apartment building, and your finance $($interest$)$ costs were $$2,881,353\mathrm{.}27.$ The $2023$ income tax rate was $$11\%.$

As you prepare the $2024$ budget, you realize that inflation is driving up many of your costs and you must raise rents in order to remain profitable. You also anticipate increasing your occupancy rate $$ after all, there is a housing shortage in Vancouver, and leaving units sitting empty does not make sense.

You anticipate the following changes for $2024$:

Occupancy in your apartments will increase by $5\%$ to $95\%,$ and you will raise the rent an average of $5\%.$ You anticipate a $10\%$ increase in storage locker rentals, and you plan to raise the prices by $8\%.$ Finally, you have added an extra $10$ parking spots and expect they will be rented $100\%$ of the time. Parking prices will increase by $6\%.$

Your expenses will increase as follows:

Variable:

Garbage collection: $11\%$ increase in price.

Property management fees will now be $10\%$ of gross revenue

Unit repairs and maintenance will go up by $10\%$

Fixed:

Landscaping $5\%$ increase

Building R & M $8\%$ increase

Depreciation will not change

Insurance $-2\%$ increase

Caretaker $4\%$ increase

Snow removal $7\%$ increase

Heat$/$water $1\%$ increase

Security $5\%$ decrease.

Interest costs for $2024$ will be $$2,793,941\mathrm{.}43$

$2024$ income tax rate will increase to $18\%.$

Create a table and calculate the profit for $2023,$ and the budget for $2024.$