Definition: An operating expense that generally does not vary directly with occupancy within the relevant operating range.
Example
Property taxes and basic property insurance generally continue even when some rental units are vacant.
Keep the distinction clear
Fixed does not mean the amount can never change. It describes the expense's relationship to occupancy or operating activity, not permanence over time.
Related terms
Net Operating Income (NOI) ยท Hazard Insurance
Keep studying
References: FREC Course II syllabus, Session 7
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