Sale vs. Rental Expenses

Sale-Related Expenses

As a seller, the fees associated with selling your home are higher than the fees you paid when buying your home (down payment if applicable, closing costs, inspection and appraisal fees). A good rule of thumb is to be ready to spend 9% – 10% of the sale price on selling costs. 

Here's a list of items you can expect to pay out of the proceeds from your home sale:

Outstanding Mortgage Balance

Pro-Rated Taxes – if you’ve paid these in advance, you can expect a credit

Closing Costs – includes title fees, escrow fees, reports specified in the contract

Real Estate Agent Commissions

Rental-Related Expenses

Planning to rent your home out isn’t as simple as calculating the difference between your monthly mortgage payment, Property Management fees and rental income. Rental property expenses, known as “operating expenses” encompass all the fixed and variable costs landlords can encounter. To best estimate these, it helps to make a list of everything you must plan for. 

Here’s a list of the most common rental property expenses: 

Monthly Mortgage

HOA Fees

Homeowners Insurance - if this is paid separate from your mortgage

Property Taxes - if these are paid separate from your mortgage

Trash Collection Services

Utilities (electric, water, sewer, gas) – if you would cover these vs. passing them on to the tenant

Licensing and Inspections

Periodic Vacancy


Emergency Repairs

Capital Expenditures

Marketing Costs

Tenant Screening

Property Management Fees

Accounting and Legal Fees