What are Pre-Rent Holding Costs?

[Mikael Anwar]

I am currently reading "The Book on Rental property Investing" and have stumbled upon the term "Pre-Rent Holding Costs" and I'm not sure what it means. Do you have any information about this topic?

[Kyle J.]

I haven’t read the book, but I’m guessing it’s referring to the costs associated with holding a property before you rent it out. Things like paying the mortgage, insurance, utilities, lawn/gardening service, etc. 

Some of these things can be switched over to the tenant once you have the property rented (i.e. utilities, lawn/gardening service). However, you’ll still have other expenses even after the property is rented (i.e. mortgage, insurance), but at least then you’ll have rent coming in to help offset those costs.