Your Real Estate Partners

Operating Expenses - Real Estate

 

             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 expenses associated with the

             operation of income producing properties.  The Property Analysis Investment   

             Analysis  can help you assess the impact of operating expenses on an

             investment property's income and cash flow.

 Tien and Jim