Fixed Expenses

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Fixed Expenses are expenses that do not vary with occupancy.  Property taxes and insurance are fixed expenses.


Fixed expenses reported in the reconstructed operating statement are not the actual expenses reported by the owner but rather a forecast by the appraiser of what the expenses will be in the following year.


Some expenses that would be included in a tax return as fixed expenses are not included in an appraisal report because they don't effect the operation of the property.  See Other Expenses.

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