Free Pennsylvania Real Estate Practice Exam Practice Question
In a property management budget, which of the following is NOT considered an operating expense?
Correct Answer: A
Rationale: In a property management budget, operating expenses are the costs incurred to run and maintain a property. Routine maintenance (B), advertising expenses (C), and utility costs (D) are all ongoing costs directly related to property operations. In contrast, the monthly mortgage payment (A) is a financing cost, not an operational expense. It represents a debt obligation rather than a cost associated with the property's day-to-day management. Understanding this distinction is crucial for accurate budgeting and financial planning in property management.
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