Operating expenses
The ongoing costs of running a property, such as taxes, insurance, repairs, management, utilities and HOA dues. They do not include mortgage payments or major capital improvements.
Also called: OpEx, operating costs, expenses
Related terms
A property's yearly income minus operating expenses, before mortgage payments and income taxes. It is the base number for cap rate and many commercial valuations.
The money left each month after collecting rent and paying all expenses, including the mortgage. Positive cash flow means the property pays for itself with some left over.
A person or company hired to run a rental, including finding tenants, collecting rent and handling repairs. Fees are often a percentage of rent plus leasing fees. Some states require a real estate license.
Fees tenants pay for upkeep of shared areas like parking lots, lobbies, landscaping and security, usually split by each tenant's share of the space. Estimates are billed monthly and reconciled once a year.
A yearly tax set by local governments based on a property's assessed value. Lenders usually collect it monthly through escrow, and rates vary widely by location.