Property Management
A net operating income (NOI) is calculated as:
AGross income minus debt service
BGross income minus vacancy, credit losses, and operating expenses✓ Correct
CGross income minus property taxes only
DNet income after depreciation and tax deductions
Explanation
NOI = Effective Gross Income (potential gross income minus vacancy and credit losses) minus all operating expenses (maintenance, management, insurance, taxes), but before debt service and depreciation.
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