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Common rental property operating expenses include marketing and advertising, leasing and property management, repairs and maintenance, insurance, and property taxes. Costs excluded from operating expenses include mortgage payments, capital expenses, and depreciation expenses.

An operating expense is an expense that a business incurs through its normal business operations. Operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance, step costs, and funds allocated for research and development.

Operating expenses are maintenance costs that ensure the property can produce income, such as property taxes, insurance, and management fees. Mortgages, capital expenses, income taxes, and depreciation are not considered operating costs.

Operating expenses include all of the costs associated with operating the property. These include property management fees, insurance, utilities, property taxes, repairs, and maintenance.

Net operating income (NOI) is a real estate valuation method that measures the profitability of a revenue-generating real estate property. NOI is calculated by subtracting all operating expenses a property incurs from the revenue it generates.

Operating expenses are maintenance costs that ensure the property can produce income, such as property taxes, insurance, and management fees. Mortgages, capital expenses, income taxes, and depreciation are not considered operating costs.

Typically, costs such as utilities, repairs, maintenance, exterior work, insurance, management, and property taxes all factor into the overall operating expenses.

Operating Statements, also called “profit & loss” or “P&L” statements, are one of the most important documents in investment real estate. This document provides a clear view into the financial health of a property and should be accurately maintained by all real estate investors.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232