DEFINITION of 'Maintenance Expenses'

The costs incurred to keep an item in good condition and/or good working order. When purchasing an item that requires upkeep, consumers should consider not just the initial price tag, but also the item's ongoing maintenance expenses. Maintenance expenses are a major reason why home ownership can be more expensive than renting, for example. However, sometimes even items that are merely leased, not owned, such as a leased car, will require the owner to pay maintenance expenses.

BREAKING DOWN 'Maintenance Expenses'

Examples of maintenance expenses for automobiles include gas, oil changes, alignment, tire replacement, brake fluid and car washes. Maintenance expenses for a house include lawn care, plumbing repairs, roof repairs, hazard insurance premiums and replacement of worn out appliances.



RELATED TERMS
  1. Future Capital Maintenance

    A term used to account for future expenses that a company expects ...
  2. Capital Maintenance

    An accounting concept based on the principle that income is only ...
  3. House Maintenance Requirement

    The minimum amount of equity that an account holder must maintain ...
  4. Extraordinary Repairs

    Unusually extensive maintenance work performed on a piece of ...
  5. Big Ticket Item

    Big ticket items are high-value items, such as houses and cars, ...
  6. Modified Gross Lease

    A type of real estate rental agreement where the tenant pays ...
Related Articles
  1. Investing

    Don't Ignore Maintenance Fees When Buying Real Estate

    Buying an apartment or condo costs more then the price of the unit. There are also unavoidable monthly maintenance fees that can vary greatly.
  2. Investing

    11 Hidden Costs Of Owning A Home

    You should be aware of the many additional costs of buying and owning a home, because they can be shocking.
  3. Investing

    How to Calculate the OER

    An operating expense ratio describes a property’s operating expense compared to the income it generates.
  4. Retirement

    You're Retiring: Should You Sell Your House?

    Sometimes it's the only option if you're a retiree – but before you decide to put your home on the market, also consider all the other possibilities.
  5. Small Business

    What are Operating Expenses?

    An operating expense is any expenditure made for the purpose of operating a business. These expenses are the day-to-day costs that help keep the business going. Operating expenses are reflected ...
  6. Investing

    11 Hidden Costs Of Owning A Home

    The cost of buying a home extends beyond the down payment, closing costs and your mortgage. Watch out for these costs.
  7. Managing Wealth

    Buying a House? 6 Other Costs You Should Factor In

    When purchasing a home, you need to factor in more than just the list price of the home. From closing costs to maintenance, there are many other expenses.
  8. Retirement

    Simple Ways To Save In Retirement

    Balance saving and spending in your golden years with these simple tips.
  9. Retirement

    Retirement Living: Renting Vs. Home Ownership

    Here are three simple questions you should consider when weighing this decision.
  10. Financial Advisor

    Are You Mature Enough To Buy A Home?

    Owning a home is a big responsibility. Here is a look of some basic things you will need to be able to accomplish if you plan on owning a home.
RELATED FAQS
  1. How do capital expenditures affect (CAPEX) the valuation of a company?

    Learn the effects that capital expenditures, or CAPEX, used for maintenance and growth have on a company's revenue, profits ... Read Answer >>
  2. What is the difference between cost and price?

    Consider how cost affects a product's price. Corporate expenses and the current cost of living both impact the final sticker ... Read Answer >>
  3. Why are capital expenses (CAPEX) treated differently than current expenses?

    Learn the difference between capital expenditures, or CAPEX, and current expenses, and determine why they are treated differently ... Read Answer >>
  4. What is the difference between an operating expense and a capital expense?

    Learn the differences between an operating expense and a capital expense, and see how the two types of expenses are treated ... Read Answer >>
  5. What is the difference between capital and operating expenses?

    Learn about the types of expenses that a company incurs. Understand the difference between capital and operating expenses, ... Read Answer >>
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center