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The Operating Expense report summarizes individual operating expense
amounts in the "Begin Amount" column that were entered via the
Enter Property Data form. 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.
Note: You have the flexibility to track any operating expense
item that you wish via the last four expense item rows on this
report. Also 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. You could also run the first year of data to
anticipate your operating expense and rental income increases in
your first year of operation.
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