Property Management

A Montana property manager is responsible for a large apartment building's annual budget. They should include in the operating expense estimate all of the following EXCEPT:

AProperty insurance
BProperty taxes
CMortgage principal and interest payments✓ Correct
DMaintenance and repairs

Explanation

Mortgage principal and interest are debt service payments, not operating expenses. Operating expenses include property taxes, insurance, maintenance, management fees, utilities, and reserves—but not mortgage debt service.

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