What type of information does an operating budget include?

An operating budget primarily includes financial forecasts for future operational expenses. This involves projecting the expected costs necessary to run a property effectively over a specific period, typically on an annual basis. These forecasts encompass a range of expenses, such as utilities, maintenance, property management fees, insurance, and other routine operating costs.

The operating budget serves as a crucial financial planning tool, allowing property managers and owners to allocate resources appropriately and make informed decisions regarding the management of the property. It helps in anticipating cash flow needs, setting rental rates, and identifying potential financial issues before they arise.

In contrast, the other types of information mentioned in the options serve different purposes. Historical data on property values can inform investment decisions or market assessments, but it does not directly pertain to the expected operational expenses of the property in the future. Similarly, market analysis for competing properties focuses on comparing and assessing the performance of similar properties rather than budgeting for operational costs. Lastly, legal requirements for lease agreements are essential for compliance and contractual obligations but do not fit within the parameters of creating an operating budget, which is primarily financial in nature.