Expense ratios for multi family properties

[Patrick Leitch]

I am working on coming up with a few ratios for a multi family property my company has. I am wanting to establish the operating expense ratio, total expense ratio, and debt coverage ratio. The debt coverage ratio is pretty cut and dry (I still welcome any input) but I feel like I’m missing something on the expense ratios. For the operating expense ratios what do you consider to be all of the operational expenses included? Excluded? Property management, repairs and maintenance, payroll for a property, etc. - is property tax included? - mortgage? (I initially think no because that’s not an operational expense per se). What is involved in total expense ratio? Cap Ex, depreciation, etc. Thank you!