Net operating income (NOI) refers to the the total profit gained from an investment asset. The NOI calculation is used to determine whether real estate investments will generate income. To obtain the NOI, all necessary operating expenses must be deducted from the total revenues earned from the property.
Operating expenses include mortgage costs, management fees, taxes, repairs, and employee salaries such as janitors, concierges, and property managers.
Total revenue can include rent earned from the property, service fees, parking fees.