Annual Property Operating Data Sheet (APOD) Explained

What information does an Annual Property Operating Data sheet (APOD) provide to prospective buyers?

The APOD provides important financial information about a property to prospective buyers, including:

A. Gross rental income

B. Operating expenses

C. Cash flow

D. Net operating income

Answer:

The APOD provides important financial information about a property to prospective buyers, including gross rental income, operating expenses, cash flow, and net operating income.

An Annual Property Operating Data sheet (APOD), prepared by a seller's agent and handed to a prospective buyer, provides operating information on the property, including gross rental income, operating expenses, cash flow, and net operating income (NOI). The APOD gives the buyer a snapshot of the property's financial performance and can help them determine its investment potential. The sheet typically includes line items such as rental income, vacancy losses, operating expenses (like maintenance, management fees, utilities, insurance, and taxes), and capital expenditures. Calculations such as cash flow and NOI are crucial for understanding the profitability of the property. Operating expenses are listed out to give the buyer a sense of the ongoing costs associated with maintaining the property, while income figures help calculate the return on investment (ROI).