![]() This determines the total cash left over to pay the bank (if financed) and investors and to make a profit. The total income minus expenses is also known as the bottom line. Net operating income = annual gross potential income - annual expenses. The next step is understanding how to calculate the net operating income. A key point to consider here is expenses that are not included in this calculation: interest, taxes and capital expenditures (one-time expenses such as a new roof or major renovations).Īnnual expenses = contract services + turnover expenses + utilities + management fees + repairs and maintenance + G&A + payroll + marketing.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |