Annual expenses are the total costs to operate a rental property each year. This includes everything from property taxes and insurance to repairs, maintenance, HOA fees, and property management. These costs directly affect Net Operating Income (NOI) and overall cash flow. They’re especially important when comparing investment properties—two homes with similar rents might have vastly different expense profiles. Professional investors budget for rising costs, using tools like expense inflation rates to model future performance. Meridian Pacific Properties provides transparent pro forma estimates so investors can understand expected annual expenses before buying.
