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

Practice More North Dakota Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free North Dakota Quiz →