OPERATING EXPENSE RATIO IN APARTMENT PROPERTY ANALYSIS: EVERYTHING YOU NEED TO KNOW BEFORE INVESTING.
An expenditure ratio sometimes referred to as an operating expense ratio (OER), is a statistic used to compare a property’s running costs to the income it brings in. Use the following formula to calculate a property’s operating expense ratio: Operating Expense Ratio = Operating Expenses / Gross Operating Income For instance, a building with $40,000…