Operating expenses as a share of effective gross income.
Most long-term rentals run 35–50%. A listing claiming 20% expenses is usually forgetting management, maintenance, or vacancy — check before you trust the pro forma.
Formula: OER = Operating Expenses ÷ EGI × 100
Example: $34,000 expenses ÷ $93,500 income = 36%.
FAQ
What is Operating Expense Ratio in simple terms?
Most long-term rentals run 35–50%. A listing claiming 20% expenses is usually forgetting management, maintenance, or vacancy — check before you trust the pro forma.
How is it calculated?
OER = Operating Expenses ÷ EGI × 100. Example: $34,000 expenses ÷ $93,500 income = 36%.