Financials
Net operating income is rental revenue minus operating expenses, before debt service and capital expenditures.
Updated Sep 12, 2026
NOI = Effective Gross Income − Operating Expenses
Net operating income (NOI) is the standard measure of a rental property's operating profit. Start with collected and billable income, subtract vacancy and credit loss to get effective gross income, then subtract operating expenses such as repairs, insurance, utilities, and management.
NOI excludes mortgage principal and interest, depreciation, income taxes, and capital improvements. That separation lets you compare two buildings on operations alone, then layer financing later.
Unitz tracks rent, other income, and operating expenses in one ledger so you can read NOI by property or portfolio without exporting to a spreadsheet. See Financial Intelligence.
The capitalization rate is NOI divided by current market value (or purchase price), expressed as a percentage.
Debt service coverage ratio is NOI divided by annual principal and interest. Lenders use it to test whether operations can pay the loan.
Effective gross income is gross potential rent plus other income, minus vacancy and credit loss.
Operating expenses are the recurring costs of running a property, such as repairs, insurance, utilities, and management fees.
See this in the product: Financial Intelligence
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