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     Operating Expense Report
                 ( See Report Below )  
  The Operating Expense Report displays the previous owners expense item entries in the begin amount column.  Operating expense items are summarized by expense item name, expense item amount, expense item percent of total operating expenses and expense item percent of effective gross income.  The Year 1 Amount column displays a breakdown of operating expense items for your first year of operation.  To learn more about operating expenses, click on

Operating Expense Article

Operating Expense Ratio

Operating Expense Graphic

The operating expense percentage breakdowns should help you to spot potential problems. For example, if the maintenance expense percent is excessively large, this may be an indication of the property's physical condition.  If you pay the utilities and the utility expense percent of effective gross income is excessive, this might indicate that the building is poorly insulated.

You have the flexibility to track any other operating expense items that you wish via the last four expense item rows on this report.  You can also type over and rename any expense item name that is not being used.  On the report below, note that the beginning amounts and the year 1 amounts are the same since we ran the first year of data at point of purchase.  We used a 0% expense growth rate for the first year of operation to mirror the previous owner's financial data.  You can run a constant expense growth rate or you can vary the expense growth rate from year to year over a ten year period. Note that the first year of operating expense data could have been ran at an anticipated inflation rate to emulate your first year of operation.  

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