Rental Property Expenses Checklist

Underestimating expenses is the most common reason rentals disappoint. Budget for each of these:

1. Property tax — use the actual bill; it may be reassessed after purchase.
2. Insurance — a landlord (dwelling fire / DP-3) policy, not homeowners.
3. Vacancy — 5–8% of rent for long-term rentals.
4. Repairs & maintenance — often 5–10% of rent.
5. Capital expenditures — roof, HVAC, water heater, flooring: 5–10% of rent as a reserve.
6. Property management — 8–12% plus leasing fees (fee calculator).
7. Owner-paid utilities — water/sewer/trash are common.
8. HOA dues and special assessments.
9. Lawn, snow, pest control.
10. Turnover / make-ready — paint, cleaning, re-keying.
11. Leasing costs — listing, screening, photos.
12. Legal & accounting — tax prep, evictions.
13. Licenses & inspections — rental registration in many cities.
14. Mortgage P&I (not an operating expense, but it is cash out).
15. Mortgage insurance on low-down-payment loans.

As a sanity check, total operating expenses are often near 50% of rent. Track actual numbers with the free rental spreadsheet.