Operating expenses

Archived in the category: Real Estate Terms & Definitions
Posted by admin on 12 Jan 11 - 0 Comments

Operating expenses in Real Estate investment are all the expenses associated with operation and maintenance of a particular income producing property. They include items such as property insurance and taxes, repairs, utilities, management fees, accounting fees, attorney fees and advertising. Mortgage payments or capital improvements are not considered as operating expenses.

Operating expenses are one of the corner stones of real estate analysis, so it is important to understand this term correctly.

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