Data on what landlords and real estate investors spend to operate rental properties, plus practical ways to organize and track those costs

In NAA's 2024 same-store multifamily sample, operating expenses reached $8,657 per unit. For landlords and real estate investors, elevated operating costs make organized property- and entity-level financial records increasingly important for performance monitoring and tax preparation. Baselane is a banking and bookkeeping platform for multi-property real estate investors and operators. Baselane's property-specific banking keeps checking and savings accounts organized across properties and entities. With Baselane Smart, AI and custom rules automatically assign transactions to the right property, entity, and tax category using 120+ real-estate-specific categories.

Key takeaways

• Operating costs remained elevated: NAA's 2024 same-store multifamily sample reported $8,657 per unit in operating expenses, up 2.2% year over year.
• Maintenance was a major expense line: Maintenance and repairs represented 42.1% of operating expenses excluding property tax at the median property in 2023.
• Insurance costs rose sharply: Multifamily property insurance increased 10.8% year over year in NAA's 2024 same-store sample, while Federal Reserve analysis found average monthly insurance costs in its CMBS-backed multifamily sample rose more than 75% in real terms from 2019 to 2024.
• Most properties reported no reserves: A property-weighted 90.2% of rental properties reported a capital-reserve balance of zero in 2023.
• LIHTC expenses outpaced income: Novogradac's 2024 LIHTC dataset shows compound annual growth rates since 2016 of 7.0% for operating expenses, 5.1% for rental income, and 2.7% for net operating income.
• Most rent dollars covered costs: NAA's analysis of 2024 financial data shows 89 cents per dollar going to mortgage payments, operating costs, property taxes, payroll, and capital expenditures before 11 cents returned to the owner.

Understanding your rental property operating expense ratio

Operating expense ratio (OER) expresses operating expenses as a percentage of an income measure. The denominator varies by dataset, so comparisons are most meaningful when the underlying definitions are consistent. The Novogradac figures below use rental income.

1. LIHTC operating expenses equaled 61.8% of rental income in 2024

In Novogradac's 2024 LIHTC dataset, operating expenses equaled 61.8% of rental income, up from 53.8% in 2016. This is a benchmark for properties in Novogradac's LIHTC dataset rather than a general average for all U.S. rental properties.

2. Operating costs consumed 27 cents of every rent dollar

NAA's analysis of 2024 financial data found that 27 cents of rent went to operating costs, while 44 cents went to mortgage payments, 10 cents to property taxes, 7 cents to payroll, and 1 cent to capital expenditures and reserves. The remaining 11 cents returned to the owner.

3. Maintenance consumed 8% of annual rent receipts

At the property-weighted median rental property, maintenance spending equaled 8.0% of rent receipts in 2023.

4. LIHTC net operating income had a 2.7% CAGR since 2016

Novogradac's 2024 LIHTC dataset shows compound annual growth rates since 2016 of 5.1% for rental income, 7.0% for operating expenses, and 2.7% for NOI. The same LIHTC series shows operating expenses rising from $5,721 to $7,657 per unit over the three-year growth period described by Novogradac, a 33.8% increase.

Baselane reporting provides real-time views of net cash flow, NOI, rent roll, tenant ledger, and inflows and outflows by property and entity. Its bookkeeping and tax reporting tools also include Schedule E reports and income statements.

Common rental property expenses and cost benchmarks

Expense benchmarks can help investors compare property-level spending, but the datasets below cover different property populations. Whether a cost is deductible depends on IRS rules and the facts of the expense.

5. NAA same-store operating expenses reached $8,657 per unit

In NAA's 2024 Income/Expense IQ same-store multifamily sample, operating expenses reached $8,657 per unit, up 2.2% year over year.

6. One-unit rentals averaged $8,670 in operating expenses

The 2024 Rental Housing Finance Survey reported $8,670 per housing unit in mean total operational expenses for one-unit rental properties in 2023. The same survey found that 82.9% of rental properties contained one unit.

7. Administrative and payroll expenses reached $2,323 per unit

Administrative and payroll expenses reached $2,323 per unit in NAA's 2024 same-store sample, up 3.81% year over year and nearly 20% from 2021.

8. Median operating expenses excluding property tax were $4,328 per unit

RapidEye's property-weighted analysis found a median of $4,328 per unit in operating expenses excluding property tax in 2023, compared with a mean of $5,659 per unit.

For investors tracking expenses across multiple properties and entities, Baselane bookkeeping organizes financial activity by property and entity and provides financial reports alongside Baselane Banking.

Maintenance and repair cost statistics

RapidEye's 2026 analysis computed property-weighted estimates from the Census Bureau's 2024 Rental Housing Finance Survey public-use microdata, which covers calendar year 2023. The analysis reports that 46.9% of properties supplied a maintenance and repair figure and 56.9% of properties supplied total operating expenses. RapidEye does not publish margins of error for these derived estimates, so the figures are best read with those methodology limits in mind.

9. Median maintenance spending was $1,600 per unit

The property-weighted median maintenance cost reached $1,600 per unit in 2023, while the mean was $2,782 per unit. RapidEye reports that the mean was 74% above the median. When weighted by rental units rather than properties, median maintenance was $1,175 per unit.

10. Maintenance represented 42.1% of operating expenses excluding property tax

At the median property, maintenance and repairs represented 42.1% of operating expenses excluding property tax in 2023.

11. Repairs and maintenance increased 28.2% from 2021

Repairs and maintenance reached $1,098 per unit in 2024, up 3.7% year over year and 28.2% from 2021.

12. 7.4% of properties reporting maintenance spent $0

RapidEye's property-weighted RHFS analysis found that 7.4% of reporting properties spent nothing on maintenance and repairs in 2023.

13. Single-unit rentals owned by individual investors spent a median $2,000 per unit

Single-unit rentals owned by individual investors spent a median $2,000 per unit on maintenance in 2023.

Insurance cost trends

Insurance costs rose materially in the multifamily datasets cited below. The figures preserve each source's population and methodology rather than treating one dataset as representative of all rentals.

14. Insurance costs rose 10.8% year over year

Property insurance costs increased 10.8% year over year to $777 per unit in NAA's 2024 same-store multifamily sample, following a 25% increase in 2023.

15. Monthly multifamily insurance costs increased more than 75% from 2019

Federal Reserve analysis of CMBS-backed multifamily properties found that average monthly insurance costs increased from $39 to $68 per unit from 2019 to 2024 in real 2023 dollars, an increase of more than 75%. The sample consists of multifamily properties with mortgages securitized in CMBS pools.

16. Insurance costs equaled about 5% of revenue in the Federal Reserve sample

In the Federal Reserve's CMBS-backed multifamily sample, insurance was about 5% of revenue for the average property in 2024.

17. Median rental property insurance expense was $1,000 per unit

RapidEye's property-weighted RHFS-derived analysis found a median $1,000 insurance expense per unit in 2023.

Baselane's property insurance marketplace offers property insurance through partner Obie.

Property management fees and their impact on NOI

For investors who use professional property management, management and tenant-placement fees can become recurring operating costs reflected in NOI.

18. The average management fee was 8.49% of collected rent in the cited study

A sample of 722 branches from 669 corporations found an 8.49% average management fee among companies advertising fees as a share of collected rent. Advertised rates ranged from 3.75% to 14%, while the study estimates a nationwide average range of 6% to 10%. The page currently lists September 7, 2022 as its last update.

19. Median management expense was $1,300 per unit

Median management expense was $1,300 per unit in 2023, the second-largest median expense line after maintenance in RapidEye's property-weighted RHFS-derived analysis.

20. Tenant placement fees averaged 70.6% of rent collected among companies also charging for management services

In the same study, among property management companies that charged tenant placement fees in addition to management services, the average charge was 70.6% of rent collected.

21. 75.3% of surveyed companies used a percentage-of-rent management fee

The same study found that 75.3% of surveyed companies used a percentage of unit rent to charge for management services.

For self-managing landlords, Baselane rent collection supports automated invoices, reminders, and late fees, while tenants can make one-time or recurring payments through ACH or card.

Property taxes and utility expenses

Property taxes and utilities can move differently across markets and expense categories, so national benchmarks are most useful when paired with local property-level data.

22. Property taxes increased 9.7% in NAA's 2023 analysis

Property taxes increased 9.7% in 2023, up from 5.3% in 2022, and more than one-third of markets in NAA's same-store analysis experienced double-digit property tax increases.

23. Property taxes represented 26.3% of operating expenses

Property taxes represented 26.3% of operating expenses in NAA's 2023 same-store multifamily analysis. In NAA's 2024 same-store sample, combined property taxes and insurance reached $2,998 per unit, up 2.65% year over year.

24. Total utilities reached $1,304 per unit

Utility costs totaled $1,304 per unit in NAA's 2024 same-store sample, down 3.2% year over year. Water and sewer costs increased 5.1% year over year.

Capital reserves and long-term planning

Dedicated capital reserves can separate planned major repairs from day-to-day operating funds. The RHFS-derived statistics below show how uncommon reported reserve balances were in the analyzed rental stock.

25. 90.2% of rental properties reported zero capital reserves

A property-weighted 90.2% of rental properties reported a capital-reserve balance of zero in 2023. Weighted by rental units rather than properties, 69.7% of rental units were in properties reporting no capital reserves.

26. Only 36.1% of properties reported any capital spending

RapidEye's property-weighted analysis found that 36.1% of rental properties reported capital spending in 2023. Among those properties, the median outlay was $4,000, or $3,320 per unit.

27. Properties holding reserves had a median balance of $25,000

RapidEye's property-weighted analysis found a $25,000 median reserve balance among properties reporting reserves in 2023.

Baselane property-specific banking allows investors to open unlimited checking and savings accounts organized across properties and entities. Its pricing page lists no monthly account maintenance fees and no minimum balance requirements for Baselane Banking accounts. Separate savings accounts can be used to organize reserve funds by property or entity.

Vacancy costs and turnover expenses

Vacant units reduce rental income, while turnover can add leasing and operating costs. The NAA figures below come from its 2024 rent-dollar analysis and its 2024 Income/Expense IQ same-store multifamily data.

28. Turnover costs jumped 17.5% year over year

NAA reported that turnover costs rose 17.5% year over year in 2024. In the same year's Income/Expense IQ same-store data, leasing expenses reached $292 per unit, up 4.6%, largely driven by higher turnover costs.

29. Vacancy and rent loss rose to $1,323 per unit

Vacancy and rent loss reached $1,323 per unit in NAA's 2024 same-store sample, increasing 2.6% from 2023 and marking the fourth consecutive annual increase.

Regional variation in operating expenses

Operating costs vary materially by market, which makes regional and property-level comparisons more useful than a single national figure for local budgeting.

30. Orlando operating costs rose nearly 9.8% in NAA's same-store sample

Within NAA's 2024 same-store multifamily sample, Orlando, Florida recorded nearly 9.8% annual growth in operating expenses and a 39.4% increase from 2021. San Diego recorded a 9.6% annual increase.

Within the same sample, Austin expenses fell 6.4% year over year, while Tampa expenses fell 4.3%.

How Baselane helps landlords and real estate investors track operating expenses

Baselane is a banking and bookkeeping platform for multi-property real estate investors and operators. It centralizes property- and entity-level banking, bookkeeping, rent collection, reporting, and tax preparation in one real estate-focused platform rather than splitting those financial workflows across separate bank logins and general-purpose apps.

• Property- and entity-level banking: Baselane allows investors to open unlimited checking and savings accounts for properties and entities. Baselane Banking has no monthly account maintenance fees and no minimum balance requirements.
• Automated bookkeeping: With Baselane Smart, AI and custom rules automatically assign transactions to the right property, entity, and tax category using 120+ real-estate-specific categories. Baselane also supports property- and entity-level income and expense tracking.
• Real-time financial reporting: Baselane financial reports include net cash flow, NOI, rent roll, tenant ledger, and inflows and outflows by entity and property. Baselane Smart also includes balance sheet reports.
• Tax reporting package: Baselane's accountant tax package includes a transaction ledger, income statements, captured receipts, and Schedule E reports. Its tax preparation tools support multiple properties and U.S.-based entities, with Schedule E reports for each rental property.
• Receipt matching: Baselane Smart includes auto-receipt matching to pair uploaded receipts with the corresponding transactions.
• Integrated rent collection: Baselane automated rent collection supports invoices, reminders, late fees, and one-time or recurring ACH and card payments.

For investors managing multiple properties or entities, Baselane provides a purpose-built financial layer that can work alongside property management tools while keeping banking and bookkeeping workflows connected in one system.