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.
Related Louisiana Property Management Questions
- The management fee structure for a Louisiana commercial property is typically based on:
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