What determines the value of a variable expense?

The value of a variable expense is predominantly determined by factors intrinsic to the property itself, such as its size, condition, type, and age. These characteristics directly influence the costs associated with maintaining and operating the property. For example, a larger property may incur higher utility costs, while an older property might require more maintenance, affecting the overall variable expenses.

While factors like property taxes, seasonal variations, and interest rates in the economy can impact overall expenses, they do not specifically define variable expenses as the attributes of the property itself do. Thus, the inherent characteristics of the property—size, condition, type, and age—play a critical role in determining the nature and amount of variable expenses.