Amounts paid to maintain property, such as PROPERTY TAXES, UTILITIES, HAZARD INSURANCE . Excludes financing expenses and depreciation .


Example: The following operating expenses are incurred:

• maintenance

• management

• real estate taxes

• hazard and liability insurance

• utilities

• supplies The following are not categorized as operating expenses:

• debt service principal payments interest loan fees participation payments

• depreciation

• income taxes

Previous:	Operating Expense Ratio, Operating Capital
Next:	Operating Lease, Operating Leverage

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Dictionary of Real Estate Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved.

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