School Facility Monthly Costs Checklist

Your facility budget is more than just rent. Between CAM charges, utilities, insurance, janitorial services, and amortized move-in costs, the true monthly cost of operating a school building can be 40-60% higher than the base rent alone. This checklist helps you identify every recurring facility expense so nothing catches you off guard. Use it alongside your lease terms to build a complete picture.

Base Rent

The core rental payment to the landlord.

• Monthly base rent calculated (annual rate / 12)
• Annual escalation rate noted and future years projected
• Any free rent or abatement period identified

CAM & Operating Expenses

Common Area Maintenance and building operating costs.

• Monthly CAM charges calculated
• CAM cap or controllable expense limit identified
• Property tax pass-through amount determined
• Building insurance pass-through amount determined

Utilities

Monthly utility costs for the space.

• Electric cost estimated (request utility history from landlord)
• Gas/heating cost estimated
• Water and sewer cost estimated
• Trash removal cost determined
• Internet and phone service cost estimated

Insurance & Security

Insurance and security costs for the facility.

• General liability insurance premium estimated
• Tenant property/contents insurance estimated
• Workers' compensation (facility staff portion) estimated
• Security system monitoring cost determined
• Security personnel cost estimated (if applicable)

Maintenance & Janitorial

Ongoing cleaning and maintenance costs.

• Janitorial service cost estimated
• Landscaping and grounds maintenance cost (if tenant responsibility)
• HVAC preventive maintenance contract cost
• Pest control service cost
• General repair and maintenance reserve budgeted

Amortized Costs

One-time costs spread across the lease term.

• TI costs amortized monthly over lease term
• FF&E (furniture, fixtures, equipment) costs amortized
• Move-in costs (deposit, first/last) noted
• Total monthly facility cost calculated
• Per-student monthly facility cost calculated

Putting it all together: the facilities margin

Once you have identified all your monthly facility costs, calculate your total facilities margin as a percentage of revenue:

Total facilities margin = (Debt Service + M&O) / Total Revenue

Target benchmarks:

• Total facilities margin: 20-24% of recurring public revenue
• Debt service alone: 14-16% of revenue
• M&O alone: 6-8% of revenue
• Maximum Annual Debt Service (MADS): Less than 15% of total revenue

If your numbers exceed these benchmarks, revisit your space requirements, negotiate harder on lease terms, or explore alternative properties. Early-stage schools should also identify philanthropic sources to bridge the gap during enrollment growth years.