To value a property using an income approach, we need to calculate the net operating income for the property. NOI is a measure of the income from the property after deducting operating expenses for such items as property taxes, insurance, maintenance, utilities, repairs, and insurance but before deducting any costs associated with financing and before deducting federal income taxes. This is not to suggest that financing costs and federal income taxes are not important to an investor’s cash flows. It simply means that NOI is a before tax unleveraged measure of income. There may be situations where the lease on a property requires the tenants to be responsible for some or all of the expenses so that they would not be deducted when calculating NOI. Or they might be deducted, but then the additional income received from the tenants due to reimbursement of these expenses would be included when calculating the NOI. Of course, when the tenant must pay the expenses, we might expect the rent to be lower. It is necessary to consider specific lease terms when estimating NOI. Typical lease terms vary from country to country. A general calculation of NOI is shown in attached template.