#ANNUAL PROPERTY EXPENSE REPORT TEMPLATE PRO#
#ANNUAL PROPERTY EXPENSE REPORT TEMPLATE LICENSE#

Utilities paid by a landlord (such as water, sewer, and trash) are operating expenses sometimes found in a multifamily rental property.

Pest control to pay for seasonal treatment of pests such as termites, ants, scorpions, or spiders.

Landscaping and snow removal may be a tenant expense in a single family rental, but a landlord expense in a small multifamily building.

Repairs and maintenance are expenses to keep a rental property in good, habitable condition, such as fixing a leaking pipe or mending a hole in the bedroom carpet.

Property management fees also vary, but typically run 8% of the monthly rent collected.

Leasing fees (if you use a property manager) vary from company to company, but generally are equal to 1 month of rent for a new lease and half of one month of rent for renewing a lease with an existing tenant.

Tenant screening fees paid to run a prospective tenant’s credit report, background check, and rental history and eviction report.

Marketing and advertising such as print and online ads, ‘For Rent’ signs, and a website for the property or real estate business.

With that in mind, here’s a list of some of the most common operating expenses to expect for a single family rental home or small multifamily building: Operating expenses may also be different from one property to the next.

#ANNUAL PROPERTY EXPENSE REPORT TEMPLATE PRO#

When an investor reviews the operating expenses on a rental property, or puts together a pro forma of estimated expenses, only items that are on-going costs to maintain and keep the property in a good condition should be included. Understanding what is and isn’t an operating expense can sometimes be confusing. What is included in rental property operating expenses?

#ANNUAL PROPERTY EXPENSE REPORT TEMPLATE LICENSE#

Other costs to consider when investing in a rental property include appraisal and inspection fees, business and license fees, and closing costs.Costs excluded from operating expenses include mortgage payments, capital expenses, and depreciation expenses.Common rental property operating expenses include marketing and advertising, leasing and property management, repairs and maintenance, insurance, and property taxes.Operating expenses are the recurring costs to maintain a rental property in good condition.While estimating rental income is pretty straightforward, predicting operating expenses can be a little bit tricky, simply because there are a number of costs to take into account.īy properly estimating operating expenses for a rental property, an investor may be able to make a better analysis and identify opportunities for increasing profitability and cash flow.

Analyzing the income and expenses of a rental property is a key part of real estate investing.

Annual property expense report template