![]() Operating Expenses) from the yearly rental income earned (i.e. Once you’ve calculated your Gross Operating Income and Operating Costs, you will be able to subtract your running costs (i.e. They may not be spent and must be set aside in a trust account. They are not a payment made to you as other income is. NOTE: Refundable deposits are not considered operating income. Unlike expenses, these are fun numbers to track! Here are some common forms of operating income for rental property: Also called “gross income”, this number is simply the sum of all of your income from your rental property. ![]() Thankfully finding your operating income is fairly straightforward. By leaving these out of your calculations you can eliminate factors that differ from property to property, and obtain more accurate data for comparing potential rental investments on head-to-head basis. Then simply input your monthly rent and other income and any annual expenses into the above NOI calculator to find your net operating income.īecause mortgages vary between investments, your NOI calculation should not include your mortgage.
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