Operating Expenses

Operating expenses are the ongoing costs of running a property—such as maintenance, insurance, management fees, and utilities. These costs directly impact profitability and rental yield, especially in income-producing assets.

For investors or developers using short-term finance, understanding projected operating expenses helps model outcomes like gross realisation value (GRV) and net return. Commercial properties with ancillary tenants (e.g. cafés or service providers) may have variable costs that must be factored into exit strategies.