The Hidden Costs of Being a Landlord

By PropsManager Team | Dec 17, 2025

The Hidden Costs of Being a Landlord

New investors often calculate: Rent - Mortgage = Profit. They are missing a lot.

1. Vacancy

You will not have 100% occupancy. Budget for 5-8% vacancy (about 1 month per year) where you pay the mortgage but get no rent.

2. CapEx (Capital Expenditures)

Big ticket items wear out. Roofs, HVAC, water heaters. You need to set aside money every month for these eventual replacements.

3. Turnover Costs

Painting, cleaning, re-keying locks, and marketing fees every time a tenant leaves.

4. Legal and Professional Fees

Evictions, lease reviews, accounting, and software subscriptions.

5. Utilities

Even if tenants pay utilities, you have to pay them during vacancies.

Conclusion

A realistic budget includes all these "hidden" costs. If the numbers still work, you have a good investment.