OER compares a property’s operating expenses to its gross income. It’s calculated by dividing total operating expenses by gross rental income. A lower OER usually indicates better efficiency and higher profitability. For investors, this metric helps evaluate how well a property is managed and whether it’s cost-effective to operate. Meridian includes OER in our financial analysis to help buyers compare properties with clarity. While there’s no perfect benchmark, OERs between 30% and 50% are typical for well-managed rentals.
