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How to use · Renovation Budget

How to use the Renovation Budget.

Six steps from PCR-flagged scope to a draw-schedule-ready budget. Plus practitioner tips on per-unit cost benchmarking by market, MEP under-budgeting (the #1 overrun source), soft-cost discipline, and what 'value-add experienced' actually means in GC selection.

Practitioner-built ·Pairs with the AI Team when it ships Q3 2026 ·Human review required on every output

A. Six steps

From download to deliverable
  1. 1

    Download the Renovation Budget workbook

    You receive an XLSX with line-item budget tabs by category (exterior · interior · MEP · common areas · soft costs · contingency) + a per-unit rollup + a draw schedule. Save as Reno_<Deal>_<YYYY-MM>.xlsx. For full ground-up construction use AIA Forms instead.

  2. 2

    Load the scope from the PCR + sponsor business plan

    Inputs: PCR-flagged deferred maintenance items · sponsor renovation scope (kitchens, bathrooms, flooring, common areas) · MEP upgrade scope · exterior scope. Cross-reference: every PCR critical item should be in the budget; every sponsor scope item should have a PCR backing it (or be flagged as optional uplift).

  3. 3

    Set per-unit costs from market comparables

    Per-unit columns: Kitchen · Bath · Flooring · Paint · Appliances · Fixtures. Cost per unit varies by market: Phoenix value-add multifamily kitchen $4-6k; NY/LA same scope $8-12k. Get the market range from a GC or comparable deal; don't invent.

  4. 4

    Layer common-area + exterior + MEP scope separately

    Common areas: clubhouse, fitness center, leasing office, corridors, parking lot. Exterior: roof, siding, windows, landscaping, parking lot. MEP: HVAC replacement, electrical service, plumbing risers. These are not per-unit; they're lump-sum allocations.

  5. 5

    Build the draw schedule on the Schedule tab

    Draw schedule maps budget to monthly outflows over the renovation timeline (typically 12-24 months for value-add multifamily). Front-loads common areas + MEP (do those first); units roll through as turnovers occur. The lender funds against this schedule, so the timing matters.

  6. 6

    Stress-test contingency adequacy

    Contingency: 10% minimum on value-add; 15% if PCR has surprises; 20% if MEP is significantly aged. The model auto-calculates contingency as % of hard costs. Most renovation cost overruns come from MEP — under-budgeting MEP is the #1 cost-overrun source.

B. Practitioner tips

Things the file won't tell you on its own
  • Per-unit kitchen budget: get GC quotes early. Most value-add operators underbudget kitchens by 30-50%. The Phoenix $4k kitchen is a stripped scope; the $6k is institutional quality. Pick the one matching your business plan.
  • MEP discipline: a 1970s building with original plumbing risers + electrical service almost certainly needs full MEP replacement at some point in the hold. If you're not budgeting for it now, you're punting it to the next owner.
  • Soft costs: design fees, permits, project management, FF&E for common areas. Typically 15-20% of hard costs. Don't forget these — they're where renovation budgets quietly grow.
  • Vacancy during renovation: the budget should include vacancy assumption on units being renovated. Down units = no rent, but renovation cost is still being spent. The Cash Flow Projection should model this.
  • GC selection: for value-add renovation, you want a GC who has done comparable vintage + comparable scope in the same submarket. Not a national GC, not a luxury-finish GC. Local + value-add + apartment-experienced.
  • Change orders: budget contingency for 5-15% change orders on a value-add renovation. Most are MEP discovery (open up the wall, find unexpected) or scope creep (sponsor decides to upgrade fixtures). Capture both.

C. Scope & limits

What this template is — and is not
  • Not for ground-up construction. For greenfield + full construction loans use the AIA Forms tracker — different mechanics, different draw cadence, different lender review.
  • Not for specialty asset classes (hospitality renovation with brand-required FF&E, healthcare with regulatory build-out, data center with critical infrastructure). Built for multifamily / office / retail / industrial value-add.
  • Doesn't handle tenant improvement (TI) work for commercial leases — different budget structure, lease-driven funding mechanics.
  • Not a substitute for a construction-consultant review. Lenders often require a third-party consultant to validate the budget; this template structures the budget for that review.

D. Pairs with

Components that operate on or alongside this template

  • Construction Draw Analyst

    Agent (forthcoming Q4 2026)

    Reviews monthly draws against the budget schedule; flags contingency burn + scope drift.

  • Construction Budget Reviewer

    Skill (forthcoming Q4 2026)

    Audits the budget vs the SOV; flags line-item gaps and stress-tests contingency.

  • Change Order Tracker

    Skill (forthcoming Q4 2026)

    Logs change orders against the renovation timeline; calculates burn rate.

  • AIA Forms

    Template (available now)

    For deals with full GC contract + AIA-format draws, the AIA Forms tracker complements this budget template.

  • Cash Flow Projection

    Template (available now)

    Renovation outflows + down-unit vacancy assumptions should feed into the cash-flow model.

Next step

Build the full stack around it.

This template is the work surface for a specific AI agent + skill workflow. Open the Company Builder and assemble the matching agents when they ship Q3 2026.

Open the Company Builder Back to Renovation Budget