# Property management internships: operating budgets, tenants and vendors

## Reconcile a property operating variance

Fictional monthly operating model. Debt service and capital expenditure are excluded from the defined NOI.

### Monthly building assumptions in USD

| Line | Plan |
| --- | --- |
| Potential rent | 100000 |
| Vacancy loss | 8000 |
| Collection loss | 2000 |
| Other operating income | 5000 |
| Operating expenses | 55000 |
| Additional operating repair expense | 4000 |
| Additional utility expense | 3000 |

## Your turn

Calculate planned effective revenue and NOI, then NOI after both additional expenses. Name the source records needed before explaining the cause.

## Your answer

[Write your approach here.]

## For your own application

Create one fictional monthly operating report and keep cash collection, expense recognition and approval status in separate fields.

Return to the guide for the worked answer and source notes:
https://internshipdeadlines.com/guides/property-management-internships-commercial-real-estate