Property Management

An 'operating expense ratio' (OER) for a rental property is calculated as:

AOperating expenses ÷ Net operating income
BTotal operating expenses ÷ Effective gross income✓ Correct
CGross income ÷ Total property value
DNet income ÷ Total mortgage balance

Explanation

OER = Total operating expenses ÷ Effective gross income. A lower OER indicates more efficient property operations.

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