Residential rental property holding costs or expenses are the various costs that a property owner incurs while holding and managing a rental property. These expenses are crucial for budgeting and ensuring the investment remains profitable. Here are some key holding costs and expenses:

1. Mortgage Payments:
   • Principal and interest payments on any loans taken out to purchase the property.
2. Property Taxes:
   • Annual taxes assessed by local governments based on the property's value.
3. Insurance:
   • Property insurance (including liability, fire, and flood insurance, if applicable).
4. Property Management Fees:
   • Fees paid to property management companies for handling tenant relations, maintenance, and rent collection.
5. Maintenance and Repairs:
   • Regular maintenance costs (e.g., landscaping, pest control) and unexpected repair costs (e.g., fixing a leaky roof, replacing a broken appliance).
6. Utilities:
   • Costs for utilities (e.g., water, electricity, gas) if the property is vacant.
7. Homeowners Association (HOA) Fees:
   • Monthly or annual fees for properties within an HOA, covering shared amenities and services.
8. Vacancy Costs:
   • Lost rental income and expenses (e.g., utilities, marketing) incurred when the property is unoccupied.
9. Legal and Accounting Fees:
   • Costs for legal advice, drafting lease agreements, and accounting services for tax preparation and financial management.
10. Advertising and Marketing:
    • Expenses related to advertising the property to attract tenants (e.g., online listings, signage).
11. Depreciation:
    • Non-cash expense reflecting the wear and tear of the property over time, which can impact the property's value and tax obligations.
12. Capital Expenditures:
    • Costs for significant improvements or replacements (e.g., roof replacement, major appliance upgrades) that extend the property's life or value.
13. Tenant Turnover Costs:
    • Costs associated with preparing the property for new tenants, including cleaning, repainting, and minor repairs.
14. Property Inspections:
    • Costs for periodic inspections to ensure the property remains in good condition and compliant with local regulations.

Understanding these costs helps property owners manage their cash flow, set appropriate rental rates, and make informed decisions about their investment.