Maryland Clause Defining Operating Expenses

State:
Multi-State
Control #:
US-OL19034B
Format:
Word; 
PDF
Instant download

Description

This office lease form is a clause regarding all direct and indirect costs incurred by the landlord in the operation, maintenance, repair, overhaul, and any owner's overhead in connection with the project.

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FAQ

Some common types of operating expenses include: Rent. Salaries and wages. Accounting and legal fees. Bank charges. Sales and marketing fees. Office supplies. Repairs. Utilities expenses.

Key Takeaways Capital expenditures are a company's major, long-term expenses while operating expenses are a company's day-to-day expenses. Examples of CapEx include physical assets, such as buildings, equipment, machinery, and vehicles. Examples of OpEx include employee salaries, rent, utilities, and property taxes.

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

What is a Lease Operating Expense? Lease operating expenses, refers to the recurring costs of operating the wells and equipment. They are also known as LOEs, the term ?LOE? is frequently used in the oil and gas business to talk about costs associated with a given well or lease.

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.

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.

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Maryland Clause Defining Operating Expenses