Property Management
Net operating income (NOI) is used in property management to:
ACalculate the agent's commission
BMeasure the property's income-producing performance and support valuation✓ Correct
CDetermine the tenant's income qualification
DSet the property tax assessment
Explanation
NOI (gross income minus vacancy and operating expenses, before debt service) measures operating performance and is used in the income approach to value and in calculating investment returns.
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