Property Management

In Tennessee, a 'capital expenditure' (CapEx) in property management refers to:

ARoutine maintenance costs
BMajor improvements or replacements that extend the property's useful life or add value✓ Correct
CMonthly operating expenses
DTenant security deposits

Explanation

Capital expenditures are major investments in the property — such as roof replacement, HVAC system upgrades, or major renovations — that extend useful life or add value, as opposed to routine maintenance expenses.

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