Property Management

An operating expense ratio (OER) in Missouri property management is calculated as:

ANOI ÷ Gross income
BTotal operating expenses ÷ Effective gross income✓ Correct
CGross rent ÷ Purchase price
DNet income ÷ Debt service

Explanation

OER = Total operating expenses ÷ Effective gross income. It measures the proportion of income consumed by expenses. A lower OER indicates better operating efficiency.

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