Question

Which of the following would a property manager take into consideration to determine the net operating income of a property?

A. vacancy and rent loss
B. taxes
C. debt service
D. post tax cash flow

Answer 1

A property manager would take into consideration vacancy and rent loss, taxes, and debt service to determine the net operating income of a property.

Step-by-step explanation:

A property manager would take into consideration vacancy and rent loss, taxes, and debt service to determine the net operating income of a property.

Vacancy and rent loss refer to the amount of potential rental income that is not being generated due to unoccupied units or nonpayment of rent. Taxes represent the property taxes that need to be paid on the property. Debt service refers to the payment of interest and principal on any loans or mortgages associated with the property.

By subtracting these expenses from the property's potential income, a property manager can calculate the net operating income.