What is the basic terminology of a property management budget?

A property management budget typically includes key terms such as "operating expenses," which cover regular costs like maintenance and utilities; "capital expenditures," which refer to larger, one-time investments for property improvements; and "net operating income (NOI)," the income generated from the property after deducting operating expenses. Other important terms include "vacancy rate," indicating the percentage of unoccupied units, and "reserve fund," which is set aside for unexpected repairs or emergencies. Understanding these terms is essential for effective financial planning and management of a property.