Property Management

In Michigan, 'operating expenses' for a rental property include all of the following EXCEPT:

AProperty taxes
BInsurance premiums
CMortgage principal and interest payments✓ Correct
DRoutine maintenance and repairs

Explanation

Operating expenses include property taxes, insurance, maintenance, management fees, utilities, and other costs of operating the property. Mortgage principal and interest (debt service) are not operating expenses—they are financing costs calculated separately from NOI.

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