Which term refers to the income generated from property once all operating expenses have been deducted?

The term that refers to the income generated from a property after deducting all operating expenses is known as net operating income (NOI). This calculation is crucial in real estate as it provides a clearer picture of the profitability of a property.

Net operating income is derived from taking the total revenue generated from property operations, such as rent, and subtracting all applicable operating expenses, including maintenance, property management fees, insurance, and property taxes. This figure is essential for property owners and investors as it helps assess the operational efficiency and potential profitability of real estate.

Understanding NOI is fundamental for those in real estate investment and property management, as it serves as a key indicator for financial analysis, aiding in valuation and investment decisions. It is distinct from gross rental income, which accounts only for the income before any expenses are deducted, as well as effective gross income, which considers potential losses from vacancies and uncollectible rent. Operating cash flow relates more to the cash generated from all sources, not strictly from property operations.

Recognizing this terminology and its context in real estate finance is vital for navigating property tax consulting effectively.