Top 3 Rental Property Expenses That Aren't Maintenance

Landlords looking for efficient rental property management need a clear understanding of expenses other than those associated with routine maintenance and repairs. While the repairs and general maintenance help to preserve the condition and curb appeal of the rental, there are other costs that play an equally important role in maintaining a profitable rental unit.

Below we’ve gathered three non-maintenance expenses that contribute to the costs of managing a rental property, and why it is important to budget accordingly with them in mind.



Essential Utilities

Utilities are a necessary expense for rental properties after a new vacancy, while not necessarily being a form of maintenance. As a landlord, it’s your responsibility to keep essential services such as water, electricity, gas, and trash collection available to the prospective tenants viewing the rental. These expenses typically occur after a tenant moves out, and you have to ensure the unit is presentable for marketing. Utilities simply keep the unit functioning day to day; many landlords will continue to pay for some or all of the utilities after a new tenant is found as a strategic move. 

In general, most landlords will continue to pay for water and waste management even when a vacancy has been filled. Though some landlords choose to include all utilities in the rent. Depending on your area, this can be a great way to attract tenants looking to simplify their expenses. By offering convenience that appeals to tenants, it can help to justify asking for a higher rent. It's important to budget utilities as a recurring operational cost distinct from maintenance or repairs, especially if the utilities are included in the rental rates.

Advertising and Marketing

Another expense is advertising and marketing, as it's crucial for filling a vacancy. It's important to provide professional-quality photos in your listing. The more details you show in your listing, the better opinion a prospective tenant will have about your listing. A better way to show details is with a video tour of the unit to show off the property to prospective tenants. Additionally, in recent years, it has become popular to take drone photos and videos for your listing. Remember to use the most popular platforms to ensure visibility in such a competitive rental market. 

The market is also changing constantly, meaning it's important to assess your rentals and adjust your listing accordingly. This can be done by investigating the costs of rentals similar to yours to ensure you’re also competitive. Unlike costs associated with maintenance, advertising costs support potential income generation by keeping vacancy periods low. 

Vacancy Costs

Income loss from vacancies is an unavoidable rental property expense, even on the most successful rentals. When a unit sits empty, landlords can not only lose rental income, but they will also typically pay utilities, insurance, and taxes associated with the rental. These costs don't directly affect the property; it's simply a part of the process of downtime between tenants.

Managing your vacancies efficiently is important to maximizing your returns. While not unavoidable in their totality, you can reduce vacancy costs by ensuring your tenants are satisfied and comfortable. 

While not part of the maintenance budget, utilities, advertising, and vacancy costs should be recognized as part of normal operations. Keeping these costs in mind helps to properly budget and provides a more precise understanding of how your property is performing. If you need help filling vacancies or if you need help managing your Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online.