What is typically included in a property's net operating income?

Net operating income (NOI) is a key indicator of a property's profitability that reflects the income generated from its operations, typically rental activities. This figure is calculated by taking the total income produced by the property, which includes rental income and other income related to property use, and subtracting all operating expenses associated with maintaining the property.

In this context, the correct answer highlights the inclusion of income generated from rental activities as part of the net operating income. This means all revenue earned from tenants' payments for using the property contributes directly to the NOI, making it a crucial component in assessing an investment property's performance.

NOI does not factor in the mortgage payments, as these are considered financing costs rather than operational expenses. Therefore, it does not encompass just the expenses of property maintenance, since while operating expenses are subtracted from total income to determine NOI, the income itself is paramount. Additionally, focusing solely on property insurance costs misses the broader picture of income generated from the property's full operational capacity.