Guide

Understanding property ownership costs

By Jodi Bernard, PEI REALTOR®, CENTURY 21 Northumberland Realty. Updated October 12, 2026.

Ownership cost is what the property consumes whether or not a guest is there. Keep it separate from debt so you can see the building on its own.

Operating

Tax, insurance, utilities the owner pays, repairs, lawn and snow, management, and reserves. These reduce net operating income. The mortgage does not.

Town versus rural

Charlottetown and Summerside properties are more likely to have municipal water and sewer. Rural and shore properties more often have wells, septic, longer driveways, and seasonal roads. Do not average them.

Debt

Down payment, interest, renewal risk, and mortgage insurance if a lender requires it sit in the cash-on-cash calculation, not in the cap rate.

This is educational, not legal, tax, or lending advice. Ask Jodi Bernard about a specific property.