Just like your personal home payment, Advisors recommend that a church’s total facility expenses should not exceed thirty-three percent (33%) of a church’s annual income. These facility costs include both debt service (principal and interest payments) and the costs to operate the property (utilities, exterior maintenance, mechanical system maintenance, interior cleaning, insurance, trash, snow removal, etc. Advisors generally figures that is costs approximately $3.50/SF to operate your church property.
If you would like assistance in figuring how much debt your church might be able to comfortably handle, or the payment for a specified loan amount, please give Scott McLean a call at 303-534-3344 or email him at scott@developco.com.