Glossary of Terms

Carry Costs 2019-05-16 08:00:00

Carry Costs

Carry costs are any expenses the owner must pay on investment property over the course of owning it. These costs usually include utilities, debt service payments, taxes and insurance, among other items.

Carry costs are important to quantify because of their effect on a property’s budget and cash flow, thus influencing return on investment (ROI) and cap rate. Knowing the carry cost of a property may also help determine how much rent to charge a tenant, given one will know how much their expenses will be by just owning the property.