What is an incidental expense in property management?

An incidental expense in property management refers to unplanned costs that can arise unpredictably and are typically not part of the regular budget for property management. These expenses are often necessary to maintain the property in good condition and ensure its functionality. In this context, emergency repairs exemplify incidental expenses because they address urgent issues that require immediate attention, such as a broken heating system in winter or a sudden leak that could cause water damage.

While planned maintenance costs, monthly service fees, and utility charges represent ongoing and foreseeable expenses associated with property management, they do not fall under the category of incidental expenses. Planned maintenance is budgeted in advance, service fees are regularly scheduled costs, and utility charges are typically predictable based on consumption. Thus, they lack the unpredictability that characterizes incidental expenses, making unplanned costs like emergency repairs the correct interpretation of this term.