NOI

4 Replies

Originally posted by @Lesley Govan :

Hi,

When calculating NOI, why do you include electricity and gas? Don't the tenants pay that in a multifamily?

Confused.

Lesley

 You will have these expenses during vacancy.

On multi units, usually 3 units and up there are common areas which require are metered separately from the tenants. Hallways and some basement areas. You will see meters for each unit, and a meter for the common areas.