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Expenses Property Owners Pay That Renters Do Not

By Mike in Downtown San Diego Real Estate|Rentals with 0 Comments

One of the most important steps in purchasing a property is establishing a feasible budget. Unfortunately, many prospective buyers often overlook the full range of expenses that they’ll be taking on once they become bona fide Downtown San Diego real estate owners. Following are five expenses homeowners pay but renters don’t that should always be accounted for in all your pre-purchase budgeting and planning.

Full Utilities

Although most renters are currently covering a hefty portion of their overall utility costs, there are a number of charges that are often covered by landlords, such as water and garbage. When you own a place, you’ll be responsible for paying all of these fees, typically through a monthly HOA fee. Moreover, you’ll find that utility charges such as water, electricity, gas and garbage are significantly higher than they were when you paid them as an apartment dweller.

Property Maintenance, Repairs, and Upgrades

Upkeep is another expense that you’ll take on as soon as you take possession of your property. When things wear down or fall apart, you can’t call a landlord to have them fixed. Although you may have insurance and a home warranty to fall back on, many of these costs will come directly out of your own pocket. Moreover, in order to preserve the value of your investment, there are a number of maintenance services that you’ll have to pay for annually or bi-annually just to keep things in good working order.


Insurance is something that all homeowners have to have in order to protect their investments. If you’re financing this purchase by working with a mortgage lender, you’ll need to have a comprehensive plan that protects your lender’s interests as well. This coverage costs approximately $35 per month per every $100k of assessed home value but could be higher or lower depending upon your insurer and the amount of additional protection desired.

Property Taxes

Property taxes are an unavoidable expense and one that bears a significant impact on how successful you’ll be as a property owner over the long-term. When considering condos and lofts in Downtown San Diego, take a look at the property tax information that is on the MLS. Divide this number by twelve and add the resulting answer to your mortgage payment in order to see how this will impact your monthly budget.

Homeowners’ Association Fees

HOA dues are the fees that you’ll pay to live in a selected community and participate in the upkeep of all communal features. These dues average between $200 and $400 each month. HOA monies are used for the maintenance of features like community swimming pools, fitness centers, and landscaping.

There’s a lot that goes into purchasing and maintaining a place of your own, and if you’re a first-time homebuyer, it can feel especially overwhelming—making it all the more important to work with the right agent. For more information about condo buying in Downtown San Diego, reach out to 92101 Urban Living at (619) 649-0368 and take the first steps toward finding the place of your dreams. ')}