10/12/2026
Vacancy. Every month the unit sits empty, the costs keep coming and the rent does not.
New landlords usually budget for the mortgage, the taxes and the insurance, then find the year costs more than the spreadsheet said. Four things account for most of the gap.
Insurance for a rental is not homeowner's insurance. A landlord policy covers the building and liability but not a tenant's belongings, and it generally costs more than the policy on a home you live in.
Repairs between tenants are separate from ongoing maintenance. Walls get marked, appliances fail at the worst moment, and small things accumulate over a tenancy whether anyone was careless or not.
Turnover cleaning is its own line. A unit needs to be genuinely clean to show well, and that is usually a paid job rather than a weekend.
The biggest one is vacancy. An empty unit still has a mortgage, taxes, insurance and utilities, and turnover takes longer than people plan for once cleaning, repairs and finding the next tenant are counted. A few weeks is normal. A few months happens.
Budget for all four and a rental behaves roughly as expected. Budget for none of them and a good year looks like a bad one.
General information only, not investment or tax advice. Costs and returns depend on the property, the terms and your own circumstances, and nothing here is a projection.
If you want help pressure-testing the numbers on a rental, start here: https://bit.ly/mr-contact-investor