Property manager includes in operating expenses:

The vacancy rate is a measure of the percentage of rental units that are unoccupied at a given time. It is not an expense but rather an indicator of income potential; it reflects lost revenue rather than a recurring operational cost that a property manager must pay, thus it does not belong in operating expenses.

Depreciation is an accounting method used to allocate the cost of a tangible asset over its useful life. While it can affect net income on financial statements, it is a non-cash expense and not an actual cash outflow, which means it is not categorized as an operating expense that entails immediate costs.

Mortgage payments consist of principal and interest payments on a loan taken out to purchase the property. While they are ongoing costs related to property ownership, they are not classified as operating expenses; instead, they are financial expenses associated with financing the property.