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Operating Expenses
<br /> Other Taxes,Fees&Permits- Personal property taxes,sales taxes, utility taxes,fees and permit expenses.
<br /> Property Insurance—Coverage for loss or damage to the property caused by the perils of fire, lightning, extended
<br /> coverage perils,vandalism and malicious mischief,and additional perils.
<br /> Management Fees - The sum paid for management services. Management services may be contracted for or
<br /> provided by the property owner. Management expenses may include supervision, on-site offices or apartments for
<br /> resident managers, telephone service, clerical help, legal or accounting services, printing and postage, and
<br /> advertising. Management fees may occasionally be included among recoverable operating expenses
<br /> Total Administrative Fees—Depending on the nature of the real estate,these usually include professional fees and
<br /> other general administrative expenses, such as rent of offices and the services needed to operate the property.
<br /> Administrative expenses can be provided either in the following expense subcategories or in a bulk total. 1)
<br /> Professional Fees— Fees paid for any professional services contracted for or incurred in property operation; or 2)
<br /> Other Administrative—Any other general administrative expenses incurred in property operation.
<br /> Heating Fuel -The cost of heating fuel purchased from outside producers. The cost of heat is generally a tenant
<br /> expense in single-tenant, industrial or retail properties,and apartment projects with individual heating units. It is a
<br /> major expense item shown in operating statements for office buildings and many apartment properties. The fuel
<br /> consumed may be coal,oil,or public steam. Heating supplies, maintenance,and workers'wages are included in this
<br /> expense category under certain accounting methods.
<br /> Electricity-The cost of electricity purchased from outside producers.Although the cost of electricity for leased space
<br /> is frequently a tenant expense, and therefore not included in the operating expense statement,the owner may be
<br /> responsible for lighting public areas and for the power needed to run elevators and other building equipment.
<br /> Gas-The cost of gas purchased from outside producers.When used for heating and air conditioning, gas can be a
<br /> major expense item that is either paid by the tenant or reflected in the rent.
<br /> Water&Sewer-The cost of water consumed,including water specially treated for the circulating ice water system,
<br /> or purchased for drinking purposes.The cost of water is a major consideration for industrial plants that use processes
<br /> depending on water and for multifamily projects, in which the cost of sewer service usually ties to the amount of
<br /> water used. It is also an important consideration for laundries,restaurants,taverns, hotels,and similar operations.
<br /> Other Utilities-The cost of other utilities purchased from outside producers.
<br /> Total Utilities-The cost of utilities net of energy sales to stores and others. Utilities are services rendered by public
<br /> and private utility companies (e.g., electricity, gas, heating fuel, water/sewer and other utilities providers). Utility
<br /> expenses can be provided either in expense subcategories or in a bulk total.
<br /> Repairs& Maintenance -All expenses incurred for the general repairs and maintenance of the building, including
<br /> common areas and general upkeep. Repairs and maintenance expenses include elevator, HVAC, electrical and
<br /> plumbing, structural/roof, and other repairs and maintenance expense items. Repairs and Maintenance expenses
<br /> can be provided either in the following expense subcategories or in a bulk total. 1) Elevator -The expense of the
<br /> contract and any additional expenses for elevator repairs and maintenance. This expense item may also include
<br /> escalator repairs and maintenance.2) HVAC—The expense of the contract and any additional expenses for heating,
<br /> ventilation and air-conditioning systems. 3) Electrical & Plumbing —The expense of all repairs and maintenance
<br /> associated with the property's electrical and plumbing systems. 4)Structural/Roof-The expense of all repairs and
<br /> maintenance associated with the property's building structure and roof.5) Pest Control—The expense of insect and
<br /> rodent control. 6). Other Repairs & Maintenance - The cost of any other repairs and maintenance items not
<br /> specifically included in other expense categories.
<br /> Common Area Maintenance-The common area is the total area within a property that is not designed for sale or
<br /> rental, but is available for common use by all owners,tenants,or their invitees,e.g., parking and its appurtenances,
<br /> malls, sidewalks, landscaped areas, recreation areas, public toilets, truck and service facilities. Common Area
<br /> Maintenance(CAM)expenses can be entered in bulk or through the sub-categories. 1) Utilities—Cost of utilities that
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