Property Management
When a North Dakota property manager prepares an annual budget for an investment property, they should include:
AOnly recurring monthly expenses
BOperating expenses, capital reserves for future repairs, debt service, and projected vacancy✓ Correct
COnly the mortgage payment
DOnly utility costs
Explanation
A comprehensive annual budget for an investment property includes all operating expenses (maintenance, insurance, taxes, management fees), capital reserves for major future repairs (roof, HVAC), debt service (mortgage payments), and an allowance for vacancy to project realistic cash flow.
Related North Dakota Property Management Questions
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