The spreadsheet looked clean. The numbers worked. Monthly cash flow was positive, the return was solid, and the deal made sense.
Then year two hit. The roof needed replacing. A tenant stopped paying in month eight. The HVAC failed in January. Vacancy ran six weeks instead of two.
None of that was bad luck. That was normal. It just wasn't in the pro forma, because the pro forma was built on optimistic assumptions, incomplete expense lines, and the kind of selective math that makes a deal feel better than it is.
This is the corrective. Every expense category on a Central Ohio single-family rental, with the real numbers experienced Columbus investors use when they build pro formas they actually trust.
Why Pro Formas Lie (and How to Stop Yours)
Most pro formas undercount in the same three places: they omit capital reserves entirely, they use zero or near-zero vacancy, and they model management fees as a single percentage without the placement and renewal fees that double the real cost. Fix those three and the picture changes fast.
What follows is the complete cost stack, category by category, for a $350,000 Columbus suburban single-family rental. Run your own deal through it before you close.
Category 1: Debt Service
For Central Ohio investors using conventional investment property financing in 2026, rates on single-family rentals are running approximately 7.25 to 8.0% for well-qualified borrowers with 20 to 25% down. On a $350,000 property with 25% down, the loan is $262,500. At 7.5% over 30 years, monthly principal and interest runs approximately $1,836, or $22,032 per year.
That is the fixed baseline. Everything else in the cost stack sits on top of it.
One thing investors miss: if you used adjustable-rate financing to access a lower initial rate, model what the payment looks like at the fully indexed rate. Not the teaser. The reset in year three is a real risk to model now, not later.
Category 2: Property Taxes
Property taxes in Central Ohio are set by each county auditor's assessed value and the millage rates levied by the specific municipality, school district, and any special taxing districts. The variation across Columbus's suburban ring is significant, sometimes dramatically so between adjacent communities.
Rough effective rates by submarket, based on Franklin County auditor published millage data as of early 2026. Verify current rates at the county auditor's website before closing, as levies change with each election cycle:
- Westerville (Westerville City Schools): approximately 2.2 to 2.6% of assessed value annually
- Dublin (Dublin City Schools): approximately 1.8 to 2.2% of assessed value
- New Albany (New Albany-Plain Local Schools): approximately 2.0 to 2.4% of assessed value
- Gahanna (Gahanna-Jefferson City Schools): approximately 2.0 to 2.4% of assessed value
- Columbus city proper: varies meaningfully by school district; Columbus City Schools, Westerville, South-Western, and others carry different millage rates
On the $350,000 example at an effective rate of 2.3%, annual property taxes run approximately $8,050, or $671 per month.
One thing investors consistently miss here: Ohio auditor assessments lag market values during appreciation cycles. If you are buying at today's Columbus prices, you may be paying taxes based on an assessed value that is 15 to 25% below current market for the first year or two. When the next revaluation cycle catches up, taxes increase accordingly. Pull the county auditor's revaluation schedule for the specific property before you close. Do not model taxes based on current assessed value without accounting for the adjustment coming.
Category 3: Landlord Insurance
Landlord insurance is a different product from homeowner's insurance, structured specifically for non-owner-occupied rental properties. Standard homeowner's policies do not cover rental properties, and claims on a homeowner's policy for a rental can be denied.
The main components:
Dwelling coverage insures the structure against fire, storm damage, and covered perils. For a $350,000 Central Ohio single-family rental, this typically runs $800 to $1,400 per year depending on construction type, age, location, and carrier.
Liability coverage protects you against claims from tenants or visitors injured on the property. Most landlord policies include $300,000 to $1,000,000 in liability coverage. A slip-and-fall claim can generate legal costs and settlement exposure that far exceeds the annual premium difference between adequate and minimal coverage.
Loss of rent coverage pays a portion of lost income if the property becomes uninhabitable due to a covered event during the repair period. Worth including.
Budget $1,200 per year as a middle estimate for a $350,000 Central Ohio single-family. Get an actual quote from an agent who specializes in rental property before closing. Do not estimate from your primary residence homeowner's premium.
If you hold multiple properties, add a personal umbrella liability policy at $1,000,000 to $2,000,000 in coverage. Umbrella policies run $300 to $600 per year for the first million and are straightforward risk management for a growing portfolio.
Category 4: Property Management Fees
Professional property management belongs in every rental analysis, including if you plan to self-manage. If you self-manage, you are providing the labor rather than paying for it. The economic cost is the same; it just comes out of your time instead of your cash flow. Modeling it produces an accurate picture of what the property actually earns independent of who does the work.
The real fee structure for Columbus-area single-family rentals:
Ongoing management fee: 8 to 10% of collected rent. On a $1,800 per month property, 9% equals $162 per month or $1,944 per year.
Tenant placement fee: one-half to one full month's rent when a new tenant is placed. On an $1,800 per month property, that is $900 to $1,800 per placement. Annualized over a two-year average tenancy, the placement fee adds $450 to $900 per year.
Lease renewal fee: $150 to $300 per renewal for most Columbus-area managers. Annualized, roughly $75 to $150 per year.
Total effective management cost: approximately 12 to 15% of gross annual rent when you include all three fee components. On $21,600 in gross rent, that is $2,600 to $3,200 per year.
The single most common error: modeling only the percentage management fee and omitting placement fees. That miss understates total management cost by $400 to $900 per year. The placement fee is a real recurring cost and it belongs in the model.
Category 5: Vacancy and Credit Loss
Vacancy and credit loss is the income you do not collect: empty periods between tenants, lost rent during evictions, and rent that cannot be recovered through normal channels.
Columbus-area vacancy benchmarks by submarket, based on observed market activity and property management industry data for single-family rentals. These are ranges, not guarantees, and individual properties vary based on condition, pricing, and management quality:
- Premium submarkets (top Westerville corridors, Dublin, New Albany established communities): 4 to 6% for well-managed properties with strong demand
- Solid suburban submarkets (Gahanna, Hilliard, Grove City): 5 to 8%
- Columbus city proper with more variable demand: 7 to 10% depending on specific area
On a $1,800 per month property generating $21,600 gross annually, 6% vacancy equals $1,296 in lost income. That comes off the top before a single operating expense is paid.
Zero or near-zero vacancy modeling is the most common optimism error I see in investor pro formas. Every property has some vacancy over a holding period: between tenants, during major repairs, during initial lease-up. Using 0 to 2% because the property is currently occupied is a modeling error. It surfaces as a negative variance the first time a turnover happens.
Category 6: Routine Maintenance and Repairs
Routine maintenance covers the ongoing operating cost of keeping the property rentable: appliance repairs, plumbing fixes, painting, minor electrical work, general upkeep. These happen regularly and predictably across the ownership period, even when no individual event is predictable.
The standard maintenance reserve benchmark is 1% of property value per year. On a $350,000 Central Ohio rental, that is $3,500 per year. For older Columbus housing stock, anything built before 1980, 1.5% is more appropriate given the higher frequency and cost of maintenance on aging systems. Columbus has significant pre-1980 housing inventory throughout the inner ring, and the age of the structure is the relevant variable, not the specific neighborhood.
Common routine maintenance events:
- Appliance repairs and replacement: $200 to $800 per event
- Plumbing repairs (leaky faucets, running toilets, slow drains): $150 to $400 per event
- HVAC filter replacement and minor tune-ups: $75 to $250 per occurrence, budgeted annually
- Interior paint and touch-up at turnover: $1,500 to $3,500 for a standard Columbus single-family
- Landscaping if the landlord provides it: $800 to $2,000 per year depending on lot and service frequency
The most common error: modeling maintenance based on the property's current condition rather than what it will look like under tenant occupancy over the holding period. A property in excellent condition today will not stay in excellent condition. The reserve needs to be funded regardless.
Category 7: Capital Expenditure Reserves
Capital expenditures are the major system replacements every property eventually needs. The roof, the HVAC, the water heater, the windows, the flooring. These are not optional expenses; they are deferred ones. Every year you own a rental property without funding capital reserves, you are building an obligation that arrives as a surprise instead of a plan.
Capital reserves belong in a separate budget line from routine maintenance, because tax treatment differs and the funding strategy differs.
Replacement cost benchmarks for Central Ohio:
- Roof replacement: $8,000 to $18,000. Asphalt shingles last 20 to 25 years. A roof with 10 years of remaining life on a $12,000 replacement cost should generate $1,200 per year in reserve funding.
- HVAC system (central air and furnace): $4,500 to $9,000. Average lifespan 15 to 20 years.
- Water heater: $800 to $1,500. Average lifespan 10 to 12 years.
- Electrical panel upgrade: $1,500 to $4,000 for older properties with undersized or outdated panels. A one-time capital need, not recurring.
- Window replacement: $300 to $600 per window, $4,000 to $12,000 for a full project. Lifespans of 20 to 30 years.
- Flooring: $3,000 to $8,000 for a full replacement. Carpet has a rental-use lifespan of 5 to 7 years under tenant occupancy.
- Kitchen and bathroom updates: $5,000 to $20,000 per update depending on scope.
The standard capital expenditure reserve benchmark is 1 to 1.5% of property value per year, separate from the routine maintenance reserve. On a $350,000 property, that is $3,500 to $5,250 per year. Properties with aging systems at or near end of life should reserve at the higher end. Properties with recently replaced major systems can go lower.
Combined maintenance and capital expenditure reserve on a $350,000 Central Ohio rental: $7,000 to $8,750 per year, or 2 to 2.5% of value. This is the number most pro formas most dramatically understate, and it accounts for the largest gap between projected and actual performance.
Category 8: Turnover Costs
Every time a tenant leaves and a new one moves in, the property incurs costs beyond routine maintenance. These are concentrated at the point of transition and need their own line item.
Typical turnover cost components for a Central Ohio single-family:
- Professional cleaning: $200 to $450 (tenant's obligation under a well-drafted lease, but not always collectible)
- Interior painting: $1,500 to $3,500
- Carpet cleaning or replacement: $150 to $400 for cleaning, $2,000 to $4,500 for full replacement
- Minor repairs and touch-ups from the move-out inspection: $300 to $1,000 in aggregate
- Lockset replacement or rekeying: $50 to $200 per turnover
Total typical turnover cost for a Central Ohio single-family in good condition: $2,000 to $5,000 per event. Annualized over a two-year average tenancy, that is $1,000 to $2,500 per year.
The common error here: omitting turnover costs on the assumption that the security deposit covers them. Ohio security deposits are typically capped at two months' rent and are designed to address abnormal damage, not the normal cost of preparing a unit for re-rental. Expect to recover some turnover cost from deposits and eat the rest. Model it as a real expense with partial deposit recovery, not a wash.
Category 9: Legal and Professional Fees
Rental property ownership generates recurring professional service needs that most investors underestimate.
Tax preparation: Rental property income and expense reporting on Schedule E, plus Ohio state return implications, warrants professional preparation. A CPA who specializes in real estate will charge $300 to $600 per year for a simple single-property Schedule E return.
Legal fees: A well-drafted Ohio-compliant lease from a real estate attorney runs $300 to $600 as a one-time cost you reuse across tenancies. Lease review and updates for new tenancies: $100 to $200. Eviction proceedings, if they occur, run $500 to $1,500 in attorney fees plus court filing costs. Budget $200 to $400 per year in steady state even without an eviction.
Entity formation and maintenance: Many Ohio investors hold properties in an LLC for liability protection. Ohio LLC formation costs approximately $99 in state filing fees. Ohio does not charge annual report fees for LLCs, but the accounting complexity of holding property in an entity adds to professional service costs annually.
Total annual legal and professional fees for a single Central Ohio rental: $500 to $1,200 per year in steady state.
Category 10: Miscellaneous and Unanticipated Costs
Every rental generates costs that do not fit cleanly into the categories above. Budget for these explicitly rather than treating them as exceptional.
Utilities during vacancy: When the property is empty, the landlord pays gas for heating, electricity for systems and safety lighting, and water if not shut off. A Central Ohio property vacant for 30 days in winter can generate $200 to $400 in utility costs that fall to you.
HOA fees: Columbus's suburban ring has significant HOA-governed communities, particularly in newer construction in Dublin, New Albany, and Westerville. Monthly HOA fees in these communities typically run $100 to $350 per month. If the property has an HOA, those fees are a real operating cost.
Lawn care and snow removal: When these are landlord responsibilities under the lease, budget $800 to $2,000 per year for full-service coverage on a standard suburban property.
Pest control: Proactive termite inspections and seasonal preventative services run $150 to $400 per year.
Insurance deductibles: A hail damage claim with a $2,500 deductible is a real cost that arrives without notice. Keep a portion of annual cash flow available for this scenario.
The Complete Annual Summary: $350,000 Columbus Suburban Single-Family
Pulling every category together for a $350,000 Columbus suburban single-family rental generating $1,800 per month in rent with 25% down conventional financing at 7.5%:
Gross annual rent: $21,600 Less 6% vacancy: ($1,296) Effective gross income: $20,304
Operating expenses:
- Property taxes at 2.3%: $8,050
- Landlord insurance: $1,200
- Property management at 9% of collected: $1,827
- Maintenance reserve at 1%: $3,500
- Capital expenditure reserve at 1.25%: $4,375
- Annualized turnover costs: $1,500
- Legal and professional fees: $700
- Miscellaneous: $500
- Total operating expenses: $21,652
Net operating income: ($1,348) Debt service ($1,836/month): $22,032 Annual cash flow: ($23,380)
That number is jarring if you are used to Columbus pro formas showing positive cash flow. But it reflects something important about the Central Ohio market in 2026: at current acquisition costs, current interest rates, and honest expense assumptions, Columbus single-family rentals are not positive cash flow investments at conventional leverage levels.
The investment case for Columbus is appreciation. Equity growth through value increases, mortgage paydown, and the long-term wealth creation the market's structural fundamentals support. Investors who understand this and can carry modest negative cash flow during a long hold are making a rational decision. Investors expecting the cash flow a correctly modeled pro forma does not support are headed for a hard conversation with themselves in year two.
How the Variables Move the Outcome
The negative cash flow above is not fixed. Here is what changes it:
Larger down payment. Increasing from 25% to 35% down reduces the loan to $227,500 and monthly debt service to approximately $1,590, saving $2,952 per year. That moves the annual picture from deeply negative to moderately negative. Many Columbus investors who need cash flow put 35 to 40% down.
Lower purchase price. Buying the same property at $300,000 instead of $350,000 reduces taxes, debt service, insurance, and maintenance reserves simultaneously. Every dollar of negotiated purchase price reduction is worth more than it looks, because it cuts multiple expense lines at once.
Higher rental rate. A property renting at $2,000 instead of $1,800 adds $200 per month, improving annual cash flow by approximately $2,256 after accounting for management fees and vacancy. Rental rate is the single most powerful lever after purchase price.
Rate. A 7.0% rate instead of 7.5% on the same loan saves approximately $86 per month or $1,032 per year. Meaningful but not transformative at this loan size.
What This Means for Central Ohio Investors
Honest expense accounting is not a reason to avoid Central Ohio real estate investment. It is a reason to approach it with the right expectations.
Columbus works for investors who are building long-term wealth through appreciation and can carry modest negative cash flow during the hold. The structural fundamentals supporting Columbus's appreciation trajectory, population growth, employer diversification, and constrained supply, remain intact and support the long-term case for owning here.
Columbus does not work for investors who need current income from their properties, who cannot absorb negative monthly cash flow, or who are underwriting with assumptions that exclude the real cost categories above.
For investors who need current income, lower-price-point Central Ohio submarkets still produce positive cash flow at current acquisition costs. The expense categories are largely the same across Central Ohio. The purchase price is what makes the math different.
Knowing which market fits your strategy is the first call. Knowing the real cost of ownership in that market is the second. Most investors get the second one wrong, which is why most investor pro formas underperform.
If you are evaluating a Central Ohio rental property and want a second set of eyes on your cost assumptions, or if you have a Columbus rental that is not performing the way the original pro forma suggested it would, I am happy to look at it with you.
I use this same cost framework when analyzing properties for my own account and for the investors I work with across Columbus, Westerville, Gahanna, and the broader metro. Reach me at calendly.com/adam-geuy or 937-239-2919.
Adam Geuy, Realtor, NextHome Experience. License #202000794. Each office is independently owned and operated.