The Complete Rental Property Expense Checklist

Underestimating expenses is the #1 mistake new rental property investors make. Here's every cost you should factor into your analysis.

Fixed Monthly Expenses

• Mortgage (P&I) — Principal and interest on your loan
• Property taxes — Check county records, not the listing
• Insurance — Landlord policy, not homeowner's. Budget $1,200-2,400/year
• HOA fees — If applicable. Can range from $50-$500+/month

Variable Expenses (% of Gross Rent)

• Vacancy — 5-8% in strong markets, 8-12% in weaker ones
• Property management — 8-10% if hiring a manager, 0% if self-managing
• Maintenance — 5-10% for ongoing repairs
• CapEx reserves — 5-10% for major replacements (roof, HVAC, appliances)

Often-Forgotten Costs

• Lawn care / snow removal — $50-200/month depending on location
• Pest control — $30-50/month
• Accounting / bookkeeping — $100-300/month
• Legal fees — Budget $500-1,000/year for lease reviews, evictions
• Advertising / turnover — Cost to re-list and prepare unit between tenants

The 50% Rule (Quick Check)

A common rule of thumb: total operating expenses (excluding mortgage) will average about 50% of gross rent over time. If your detailed analysis shows expenses at 30%, you're probably missing something.

What Caprium Includes

Our analyzer covers the core expenses: vacancy, property management, maintenance, taxes, insurance, HOA, and CapEx reserves. For the most accurate analysis, update the default values with actuals for your specific property.