Commercial or income producing properties have overhead costs that are reffered to as Operating Expenses. These are costs associated with the operation and maintenance of the property.

Operating Expenses include dome of the following items:
Accounting Expenses
Advertising
Attorney Fees
Insurance
Property Management

Utilities, supplies, snow removal and property management are all operating expenses. Repairs and maintenance are operating expenses, but improvements and additions are not - they are capital expenditures.

 

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