Net Operating Income

Net operating income measures the profitability of an income-producing property before adding any financing or tax costs.

To calculate the NOI, subtract all operating expenses incurred in connection with the property from all income received from the property.
The operating expenses used in the NOI metric can be manipulated if the property owner delays or accelerates certain income or expense items.
NOI does not include capital expenditures.
The NOI will tell the property owner if renting the property is worth the cost of owning and maintaining it.

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