Operating expenses include all of the costs associated with running and maintaining a building. Examples are:
- Utilities – Costs for natural gas, oil, electricity, water, internet and telephone.
- Repairs & maintenance – This would represent the costs associated with keeping the property safe and operating efficiently.
- Grounds maintenance – Costs associated with keeping the exterior areas attractive and clean.
- Trash removal – Expenses incurred to collect and remove all trash including recycling.
- Janitorial – This would include all costs to keep the interior areas clean.
- Real estate taxes – All costs related to property taxes, generally including any special assessments.
- Insurance – Includes liability and property damage, rent loss, boiler and machinery, etc
- Management fee – The fee charged to the owner for professional management services.
- Administration – The costs associated with running a management office, such as computers, printers and other office equipment.
- Payroll – All costs related to payroll – salaries, overtime, payroll taxes, medical insurance, workers compensation, etc.
