Due to inflation and other factors, operating expenses will probably increase yearly. Enter the percentage annual increase in the Operating Expense Increase per Year field. This data will allow the Template to generate projected operating expenses for the Operating Pro-Forma.

For comparative purposes, the Template supplies the Rent Increase per Year that you entered on the Rents and Income tab. Be sure to evaluate how the difference between the escalation in operating expenses and the escalation in rents impact the future viability of the project. Do not underestimate the likely increase in expenses or overestimate the increase in rents, as this can significantly affect the project over the long run.