A new survey of more than 5,000 landlords and rental owners in 5 major markets reveals that costs are rising across the board. In fact, maintenance costs, repairs, and tenant turnover are significantly impacting rental owner decisions throughout Maryland, Virginia, Pennsylvania, Washington DC, and Texas. These regions represent some of the most competitive rental markets in the country, each with unique regulatory environments, tax structures, and rental market demand.
Bay Property Management Group, a leading property management company in Philadelphia and throughout the Mid-Atlantic, conducted the survey to gather insight into the financial reality facing owners managing rentals in 2026.
The results were clear and significant.
The truth is, operating a rental business, like many other things in 2026, has become increasingly more expensive. Owners are feeling the pinch.
Nearly 80% of Landlords Say Costs Have Increased Dramatically
Given the opportunity, landlords made their voices heard, and 79% of survey participants said they agree or strongly agree that the cost of being a landlord has surged. Particularly over the last 5 years as the rental market struggled to find its footing after the Covid pandemic.
While these numbers are striking, they are not a complete surprise. At BMG, we have seen firsthand how costs have climbed for everything from labor and materials to property taxes, and administrative costs.
Let’s break down a few of the numbers – when it comes to rising costs, 44.1% strongly agree costs have surged and a further 34.55% agree. But the bigger story is that only a mere 1.4% disagree with the statement.
“The results reveal a consistent theme: the cost of owning and maintaining rental property has increased significantly.”
That is an overwhelming consensus, but it highlights a broader, and more important, trend within the industry. For many landlords, increased insurance premiums, increasing regulatory compliance, and higher operating costs are changing how they approach their rental business.
Maintenance Is the #1 Expense Impacting Profit
Things break, appliances wear out, and for landlords — repairs are inevitable. When we asked survey participants which factor has had the biggest impact on their bottom line, maintenance costs were top of the list.
According to the survey, 46.13% say maintenance is their biggest financial pressure. Essentially, that means nearly half of all landlords consider repairs and the cost of maintaining a rental their largest challenge.
When expenses are broken down, landlords reported to us that maintenance and repairs accounts for around 35.66% of their operating expenses. This includes everything from small routine fixes to emergency repairs and roof replacements, but accounting for one third of costs is still significant no matter how it’s broken down.
The trouble is, as homes and buildings continue to age, these expenses and the likelihood of major repairs only continue to climb.
Major Repairs Are the New Normal
Unexpected repairs are another major cost driver. As prices climb, setting aside enough for an emergency fund becomes harder for landlords already barely scraping by in profit margins. According to our survey, 54.97% of landlords said their most expensive repair in the past year exceeded $2,000.
A further 20.17% reported repairs between $1,000 and $2,000 and 16.3% reported costs between $500 and $1,000. Out of all participants surveyed, less than 9% experienced repairs under $500.
Adding insult to injury, landlords reported an average handyman rate of approximately $65/hour in their markets. Combine these rates with rising material costs and you can see the predicament property owners find themselves in.
Landlords Are Underprepared for Major Repairs
The trouble is that maintenance and repairs can be unpredictable. If you’re not prepared for the unexpected, these costs can hit hard, drastically impacting profitability. The survey found a disparity between the costs rental owners face and the amount they actually have saved for such events.
When asked how much they keep in a maintenance reserve fund:
- 32.77% keep only $500–$1,000
- 26.27% keep no reserve fund at all
- 25.42% keep more than $2,000
- 15.54% keep $1,000–$2,000
Given that over half of landlords experienced repairs exceeding $2,000 last year, many rental owners may be financially exposed to sudden maintenance emergencies.
As experienced property managers, we recommend that owners maintain a reserve fund of 3 to 6 months’ worth of operating expenses. We also help owners estimate potential maintenance costs based on the size and age of their rental units.
However, stashing away a large reserve fund is not an easy feat for all landlords. Circumstances vary, and when market rates have not kept pace with expenses, profit margins are thin.
Over Half of Landlords Have Raised Rent
As operating costs rise, it’s no surprise that many landlords have had little choice but to increase rental prices to fill the gap. The survey found 52.82% of landlords raised rent within the past year.
We know that increases are a sensitive topic for tenants, but they are also not always an easy decision for landlords. That said, the survey shines a light on how increasing operational costs are a frequent driver of these decisions.
For many rental owners, raising the rental rate is a necessity in order to maintain financial viability. But it is a fine balance and a risk. Raise the rent too high all at once, and you could risk losing your existing tenants.
Turnover Costs Are Higher Than Many Investors Expect
Tenant turnover remains one of the most expensive aspects of owning rental property. The survey found 59.64% of landlords say a typical turnover costs more than $2,000.
Typical unit turnover includes all things needed to prepare a property for a new tenant. This usually involves a full unit cleaning, appliance cleaning, patching and touching up walls, painting if needed, replacing HVAC filters and light bulbs, repairing minor maintenance issues. Owners must also test smoke and carbon monoxide detectors, rekey locks, and complete a final inspection to ensure the property is ready for showings or move-in.
We found that less than 6% of owners spend under $500 when a tenant moves out. Perhaps the property is newer, perhaps it was just in great shape to begin with. But either way, over 80% of owners spend $1,000 or more per unit for turnover.
It is an essential expense that owners must plan for.
“When combined with lost rental income during vacancy periods, turnover can significantly reduce annual returns.”
Over 60% of Rental Properties Sit Vacant 30+ Days
As if turnover costs weren’t enough, this also means your property will be vacant — at least for a while. How long? Well, that’s the bad news. When asked how long it typically takes to re-rent a property after a tenant leaves, landlords in the survey reported:
19.1% say more than 60 days- 47.16% say it takes 30–60 days
- 26.87% say 15–30 days
- Only 6.87% re-rent within two weeks
19.1% say more than 60 daysVacancy periods play a major role in a landlord’s overall profitability. For rental owners carrying mortgages, taxes, and insurance payments, even a one-month delay can represent thousands of dollars in lost income.
What This Means for Rental Housing in 2026
Evaluated individually, our survey results show increasing costs. Compiled together, the survey provides unique insights into what’s trending across the industry for owners.
Financial pressure is mounting across nearly every facet of rental ownership and the result — rent prices are likely to rise. From maintenance and labor costs to turnover expenses and regulatory compliance, operating a rental property requires more financial planning and strategic management than ever before.
As rental markets continue to evolve, many property owners are turning to professional management to help control costs, streamline operations, and reduce risk. At Bay Property Management Group, we rely on our extensive industry experience and deep understanding of the local market to inform our advice for clients. Whether it is strategic marketing and coordinated turnovers to limit vacancy time or handling tenant inquiries and maintenance needs — we’ve got you covered. Reach out to us today to learn how professional management can help support your rental operations.
