Operating Expenses

Operating expenses are the recurring, day-to-day costs of operating and maintaining a rental: property taxes, insurance, routine repairs and maintenance, management fees, owner-paid utilities, landscaping, snow removal, pest control, trash, leasing and marketing, and administrative costs. The exact list varies by property type and location.

What's deliberately excluded: mortgage payments, income taxes, depreciation, and capital expenditures. Those are non-operating costs; keeping them out is what lets NOI describe the property itself.

The lever nobody respects

Operating expenses sit between gross income and NOI, which means small changes here have an outsized effect on everything downstream. Underestimate them and NOI inflates, the cap rate flatters, and the deal looks stronger than it is. Validate against historical financials, comparable properties, and the property's actual age and condition.

Where you'll see it in Rescover

Every expense line on an analysis is visible and editable, with sensible defaults you can override per property or set once in your default investment parameters.