Property Management
Which of the following is a 'capital expense' for a rental property as opposed to an operating expense?
AMonthly landscaping services
BReplacing the entire roof✓ Correct
CAnnual property insurance premium
DMonthly utility bills
Explanation
A capital expense is a major expenditure that extends the useful life of a property, such as replacing a roof, HVAC system, or other major component. Operating expenses are recurring costs of routine maintenance and management.
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