What is net operating income?
Rental and other income remaining after operating expenses (property taxes, insurance, maintenance, utilities, management) but before debt service, income taxes, and capital items. The central measure of property-level profitability.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.