Operating Expenses – Real Estate Operating Expenses
Operating Expenses are costs associated with the operation and maintenance of an income producing property. Operating Expenses include the following items.
| Accounting Expenses | License Fees | Snow Removal |
| Advertising |
Office Expenses
|
Supplies |
| Attorney Fees |
Pest Control
|
Telephone |
| Insurance |
Property Management
|
Trash Removal |
| Janitorial Service |
Property Taxes
|
Travel Expenses |
| Lawn Care |
Repair Costs
|
Vehicle Expense |
| Leasing Commissions |
Resident Manager
|
Utilities |
| Legal Fees |
Salary and Wages
|
Etc. |
Operating Expenses do not include the following:
| Capital Expenditures |
| Improvements such as a new roof, new windows, the paving of a driveway, a building addition, etc. |
| Personal property such as lawn mowers, snow removal equipment, etc. |
| Income and Capital Gains Taxes |
| Loan Origination Fees |
| Mortgage Payments |
Make sure you have a good understanding of all operating expenses associated with the operation of income producing properties.
(c) Copyright 2000 – 2006 Advantage Software LLC
Search Our Blog
Invesment Formulas
- 1031 Exchange
- Condo Conversion
- Investing
- Appreciation
- Capital Gains
- Capitalization Rate
- Cash on Cash
- Debt Coverage Ratio
- Deducting Rental Losses
- Depreciation
- Discounted Cash Flows
- Gross Rent Multiplier
- Income Approach
- Internal Rate of Return
- Loan to Value Ratio
- Net Income Multiplier
- Net Operating Income
- Operating Expense Ratio
- Operating Expenses
- Pyramiding
- Tax Deductions
- Investment Forumulas
- Investors Tool Kit
- Research
