What type of expenses does the expense inflation rate affect by default?

The expense inflation rate in Argus Enterprise impacts all types of expenses by default because it is designed to apply uniformly across the various expense categories within a property’s financial model. This means that both operating expenses, which include costs required for the day-to-day functioning of the property, as well as capital expenses, which are related to long-term investments in property improvements, are influenced by the inflation rate. Additionally, administrative expenses, which cover costs incurred for managing the property, are also adjusted according to the inflation rate.

Setting the expense inflation rate to affect all categories ensures that the financial projections remain realistic and reflective of anticipated changes in costs over time, thereby providing a comprehensive view of the property's financial performance. This approach facilitates better budgeting and forecasting since it accounts for inflation's impact on different expense types concurrently.