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  • Writer's pictureAnthony J. Gullo

Multifamily Real Estate: The APOD Form

Updated: Aug 6, 2020

The Annual Property Operating Data Form (APOD Form) is an income and expense statement for multifamily real estate investment properties that calculates Net Operating Income (NOI), which is an essential component in real estate valuation.

While it is a great tool for quick investment analysis, it’s important to understand that it only provides a one-year snapshot of NOI. For a more detailed assessment, a Discounted Cash Flow Analysis is a preferred method that considers future performance, the time value of money, and incorporates additional line items excluded from NOI on a before or after-tax basis.

The following are common line items included on the APOD Form:


  • Gross Potential Rent (GPR): The amount of revenue if the property was fully leased for the entire year using market rates from comparable properties.

  • Loss to Lease (LTL): The amount of revenue lost based on the difference between actual contract rates and market rates from comparable properties.

  • Gross Rent (GR): The amount of revenue if the property was fully leased for the entire year using actual contract rates for occupied units and market rates from comparable properties for unoccupied units. Gross Rent (GR) is calculated by subtracting Loss to Lease (LTL) from Gross Potential Rent (GPR).

  • Concessions: Credits that offset tenant costs, which are typically given by owners to attract tenants into signing a lease.

  • Vacancy & Credit Loss: The estimated amount of revenue lost due to vacant units and uncollectible rent.

  • Effective Rental Income (ERI): The amount of rental revenue collected. Effective Rental Income (ERI) is calculated by subtracting Vacancy & Credit Loss and Concessions from Gross Rent (GR).

  • Other Income: The amount of additional revenue collected, independent of rental revenue, such as laundry income, parking, and storage fees.

  • Gross Operating Income (GOI): The amount of actual revenue collected. It is the total of all income from the annual operation of the property before deducting operating expenses. Gross Operating Income (GOI) is calculated by adding Other Income to Effective Rental Income (ERI).

Operating Expenses

  • Utilities: Examples include water, gas, electricity, sewer, telephone and trash removal. The costs of utilities are typically fixed in common areas and variable in rental areas, depending on whether each unit is separately metered.

  • Contract Services: Examples include landscaping, snow removal and janitorial. The costs of contract services are largely dependent on the specific property’s size and location.

  • Repairs & Maintenance: Examples include making repairs to the building, painting common areas, and annual maintenance required to operate the property.

  • Management Fee: The amount paid to manage the property including related services such as leasing and negotiating contracts that is typically based on a percentage of Gross Operating Income (GOI).

  • Insurance: The amount paid to cover certain liabilities and potential hazards such as fire, natural disasters, and vandalism.

  • Real Estate Taxes: The amount levied is based on the assessed value and will be reassessed periodically or if the property is sold.

  • Other Expenses: Common other expenses include Payroll, Supplies, Advertising, Administrative, Accounting & Legal, Unit Turnover, and Miscellaneous.

  • Lender Reserves: The amount of funds annually set aside for future unexpected property expenses. There is an argument that reserves should be excluded from operating expenses but they are typically required by lenders and included by appraisers for valuation purposes.

  • Total Operating Expenses: The total of all expenses from the annual operation of the property.

Net Operating Income (NOI): The total of all income from the annual operation of the property after deducting operating expenses. Net Operating Income (NOI) is calculated by subtracting Total Operating Expenses from Gross Operating Income (GOI).

*Common Items excluded from Net Operating Income (NOI): Examples include Debt Service, Financing Costs, Depreciation, Income Taxes, Capital Expenditures, Asset Management Fees and Commissions.

Example APOD Form:

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