🏢 Property ManagementTechnicalAlso: Capital expense vs operating cost, Long-term investment vs routine expense
Capital Expenditure (CapEx) vs Operating Expense (OpEx): Capital expenditure (CapEx) refers to major…
Definition
Capital expenditure (CapEx) refers to major property improvements that increase long-term value, like a new roof or HVAC system. Operating expenses (OpEx) are routine recurring costs like minor repairs and cleaning.
Common Questions
Real-World Example
A property manager explains that replacing all windows is CapEx, while fixing a broken latch is OpEx.
Why It Matters
CRM Services performs both CapEx and OpEx work.
Related Services
Related Terms
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Deferred Maintenance
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Maintenance Reserve
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Work Order
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