does the noi exclude taxes ,insurance, utilities not covered by cam's

In Property Management - Asked by Bruce B. - Dec 5, 2008
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Answer(s)

Mark and Paul B.
Broker/Agent
Pocatello, ID

If the tenant pays them yes, if the owner pays them, then they should be included in the NOI as long as they pertain to the actual property and are not personal income taxes. I'm assuming you're referring to property taxes, hazard insurance for the property, etc. If you're talking about the NOI for factoring CAM in a lease, then obviously you wouldn't factor the additional expenses. You need to clarify whether you're talking about the sale of a buidling, or for a lease negotiation, etc. Hope that helps.

Dec 5, 2008
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Jolly I.
Broker/Agent
Richardson, TX

NOI means net operating income and it is the value of the property multiplied by the cap rate.The owner adds taxes, insurance, utilities to the value of the property aswell. It is advisable for the property owner not to pay utilities incurred by the tenants. Tenants do take undue advantage of this by not helping to conserve energy when necessary. On the other hand, Taxes, insurance, utilities are not included in Net operating income of the tenant if tenant pays it.

Sep 8, 2009
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