What type of budget is created based on anticipated revenues and expenses for a property over one year?

The operating budget is designed to outline the anticipated revenues and expenses for a property over a one-year period. This type of budget is crucial for property management, as it helps managers plan for the income expected from rents and other sources, while also accounting for the costs associated with operating the property, such as maintenance, utilities, and management fees.

By effectively managing the operating budget, property managers can ensure that they have sufficient funds to cover all necessary expenses, ultimately supporting the financial health and operational success of the property. This forward-looking approach is essential for making informed financial decisions and guiding the property through the upcoming year.

In contrast, a projected budget typically refers to longer-term financial forecasts that may span several years and involve more assumptions about future variables. A fixed budget does not allow for adjustments based on changes in revenue or expenses and often is based on estimates from previous years, which may not accurately reflect current circumstances. A historical budget focuses on past financial performance rather than future projections, making it less useful for planning purposes.