IREM Certified Property Manager (CPM) Practice Test 2025 - Free CPM Practice Questions and Study Guide

Question: 1 / 400

Which of the following does NOT typically fall under operating expenses?

Utilities

Maintenance costs

Development costs of new properties

Operating expenses are the necessary costs for running a property on a day-to-day basis. They typically include regular expenses that are linked to the ongoing operation and upkeep of a property, such as utilities, maintenance, and insurance premiums.

Development costs, on the other hand, relate to expenses associated with creating or significantly improving a property before it is ready for occupancy. These costs are incurred for activities like construction, renovation, or substantial upgrades, and are not considered part of the regular operational expenditures. Consequently, focusing on ongoing operational costs allows property managers to effectively budget for and manage properties without the influence of larger, one-time capital outlays associated with development activities.

Thus, development costs of new properties do not align with the typical categorization of operating expenses, making this the correct choice.

Get further explanation with Examzify DeepDiveBeta

Insurance premiums

Next Question

Report this question

Download IREM Certified Property Manager (CPM) Practice Test 2025 - Free CPM Practice Questions and Study Guide PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy