Yearly expenses for the purpose of increasing the quantity and/or quality of services being gained from owning / renting a specific property. These expenses include capital expenditures required to maintain building systems such as HVAC units (Heating, Ventilation, Air Conditioning), parking lots, carpets, roofs, etc. These expenses are charged to an asset account.

Capital expenses are calculated either by multi-family per unit, or retail / industrial per square foot.