Property Management

An operating budget for a managed property includes:

AOnly capital improvement costs
BProjected income and all estimated operating expenses for a specified period✓ Correct
COnly mortgage payments and property taxes
DOnly maintenance and repair costs

Explanation

An operating budget projects all income (rents, other fees) and all operating expenses (maintenance, insurance, utilities, taxes, management fees, reserves) for the property over a specified period, typically one year. It is a key management tool.

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