-1.png){kind=small}
Operating Budget
An operating budget plans funding for routine activities and recurring costs over a defined period.
An operating budget is a plan for funding routine activities and recurring costs over a defined period.
Property operations example: list planned utilities, staffing, and routine services for the property, then compare actual spending with that approved plan for the same period.
Source: King County Council glossary, Operating Budget and Capital Budget.
Frequently Asked Questions
Does an operating budget serve the same purpose as a capital budget?
No. An operating budget funds recurring activities; a capital budget plans longer-term investments in assets or major improvements.
More in Accounting & Finance
See all Accounting & Finance terms →Additional Rent
Charges billed to a commercial or residential tenant beyond base rent, including CAM reconciliations, property taxes, insurance, and late fees.
Read definition →Amortization
Loan amortization is the repayment of principal over time through scheduled payments that also cover interest.
Read definition →Bad Debt Reserve & Delinquency Aging
The accounting methodology categorizing past-due receivables into 30/60/90-day aging buckets and provisioning an allowance for uncollectable rent.
Read definition →Base Year & Gross Up Provision
A commercial lease provision adjusting variable operating expenses to reflect 95-100% occupancy to ensure equitable pass-through billings.
Read definition →Budget Variance
A budget variance is the difference between an approved plan and actual results for the same scope and period.
Read definition →