Property Management
What is 'operating budget' in Delaware property management?
AThe budget for the property management company's corporate operations
BA financial plan projecting income (rents, other income) and operating expenses for a property over a specified period — used to measure performance and plan cash requirements✓ Correct
CA budget required by Delaware law for all commercial properties
DA government-mandated budget for properties receiving rental assistance
Explanation
An operating budget is the property's annual financial plan — projecting rental income, vacancy, other income, and all operating expenses (management fees, insurance, taxes, maintenance, utilities, administrative costs). It is used to monitor actual vs. budgeted performance, plan capital needs, and provide owners with financial transparency. Most institutional property owners in Delaware require annual operating budgets.
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