Lending & investment · Defined
Net operating income (NOI)
Property operating income after the operating expenses included in a stated calculation, generally before debt service and income taxes.
Why it matters
The treatment of reserves, concessions, and extraordinary items should be clear. A capital repair budget and recurring operating expenses describe different demands on property cash flow.
In practice
A project example
Replacing a roof is evaluated separately from the recurring expenses used in the property’s stated NOI calculation.
General educational guidance from KOW Building Consultants. Examples are illustrative, not project records. The applicable contract, standard, program, and jurisdiction control the requirements for a specific assignment.