Rising operating expenses are the biggest concern for rental property owners heading into the next 12 to 24 months, according to Hemlane's 2026 Rental Owner Report. Insurance premiums, maintenance labor, materials, turnover costs, and everyday operating overhead keep climbing, and together they squeeze the margin between rent collected and profit kept. For owners, protecting cash flow in 2026 is less about raising rent and more about controlling the costs that quietly drain income.
Where the money is leaking
The expense pressure isn't coming from one line item — it's coming from several at once. Insurance premiums have risen sharply, contractor and labor costs are up 15–25% since 2022, materials cost more, and every turnover adds cleaning, make-ready, and vacancy loss. Individually each increase looks small; together they can erase a property's annual profit if they aren't actively managed.
Insurance is the fastest-rising cost
Insurance is now one of the fastest-growing operating expenses for property owners. Premiums have climbed across most markets, and underwriting has tightened. Owners who shop coverage, document property condition with inspections, and maintain a clear maintenance record are better positioned for favorable rates — while owners with undocumented properties often pay more or face coverage gaps.
Maintenance labor and materials keep climbing
The skilled labor shortage hasn't eased, and contractor rates for HVAC, plumbing, and electrical work remain well above 2022 levels. Materials costs add to every repair. The owners who control this best aren't the ones who skip maintenance — they're the ones who use vetted vendors at pre-negotiated rates and spend preventively so small issues don't become expensive emergency calls.
Turnover is an expense, not just an inconvenience
Each move-out stacks costs — lost rent, cleaning, repairs, marketing, screening, and leasing time — typically $1,750 to $3,872 per vacancy. In a year of rising expenses, every preventable turnover is money lost twice: once in the turnover cost, and again in the higher cost to make the unit ready. Retention is one of the most direct ways to defend margin.
Control what you can
Owners can't set insurance markets or contractor wages, but they can control how their property is run. Preventive maintenance, coordinated vendors, documented inspections, fair renewal pricing, and a planned maintenance budget turn unpredictable costs into managed ones. The owners who hold margin in 2026 are the ones treating expenses as something to actively manage, not just absorb.
Key takeaway
Rising operating expenses are the top concern for owners in 2026, and most of the damage comes from costs that can be controlled — insurance, maintenance, and turnover. Vision Management & Maintenance coordinates preventive upkeep, vetted vendors, documented inspections, and budget preparation to help owners protect margin rather than simply absorb higher costs.