Expenses in real estate represent the costs associated with acquiring, maintaining, and operating a property. These expenses can significantly impact the profitability of real estate investments and the overall management of properties.
A financial statement is a formal record of the financial activities and position of a business, person, or other entity, revealing the income, expenses, assets, liabilities, and equity.
The Operating Expense Ratio (OER) is a key metric used in real estate to measure the efficiency of a property's management by comparing its operating expenses to its potential gross income. A lower OER indicates a more efficiently managed property.
A P&L statement, also known as a profit and loss statement, is a financial document that provides a summary of a company's revenues, expenses, and profits/losses over a specific period.
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