Expense Guide
Rental Property Expenses
Typical operating expenses for landlords
Operating Expense Categories
| Expense | Description | Typical % |
|---|---|---|
| Mortgage Payment | Principal + Interest | 30-40% |
| Property Taxes | Annual taxes | 8-12% |
| Insurance | Landlord policy | 3-5% |
| Maintenance | Repairs, upkeep | 5-10% |
| Vacancy | Empty unit reserve | 5-8% |
Key Metrics
Cap Rate
NOI ÷ Property Value
5-8% is considered good
Cash-on-Cash Return
Annual Cash Flow ÷ Cash Invested
8-12% is strong