Property Management

An NJ property manager preparing a capital expenditure (CapEx) reserve budget is planning for:

AMonthly operating expenses like utilities and landscaping
BMajor future expenses such as roof replacement, HVAC systems, and parking lot repaving✓ Correct
CThe broker's monthly management fee
DAnnual property tax increases

Explanation

A capital expenditure reserve sets aside funds in advance for major non-recurring expenses (roof, HVAC, elevators, parking lots) that are too large to cover in a single operating budget year.

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