Property Management

In South Dakota, a property manager who prepares a 'capital improvement budget' for a managed property is planning for:

AMonthly operating expenses like utilities and repairs
BMajor, long-term investments that extend the property's useful life or add significant value (roofs, HVAC systems, parking lots)✓ Correct
CThe property manager's compensation over the next year
DEmergency repairs funded by insurance proceeds

Explanation

A capital improvement (or capital expenditure) budget plans for major investments in the property that extend its useful life or add significant value — roof replacement, HVAC systems, elevators, parking lot repaving, major renovations. These are distinct from routine operating expenses.

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