Arizona Real Estate License Practice Exam 2025 – All-in-One Resource to Pass with Confidence!

Question: 1 / 1505

What term describes the ongoing expenses associated with running a rental property?

Amortization

Operating costs

The term that describes the ongoing expenses associated with running a rental property is "operating costs." Operating costs include various expenses necessary for the day-to-day functioning of the property. These can encompass maintenance, repairs, property management fees, utilities, insurance, and property taxes. Understanding operating costs is crucial for property owners and investors since they directly impact cash flow and profitability.

Other terms like amortization refer to the gradual repayment of a loan, which doesn't encompass ongoing expenses. Revenue pertains to the income generated from the rental property, while investment yield usually refers to the return on investment, often expressed as a percentage, not the day-to-day costs required to maintain the property. Therefore, the concept of operating costs aligns perfectly with the context of managing rental properties.

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Revenue

Investment yield

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