Operating expenses are the recurring costs required to maintain and run a property, including utilities, insurance, property management, repairs, and taxes.
For a luxury second home, operating expenses can easily run tens of thousands of dollars per year. These costs exist whether the home is occupied or sitting empty, which is one of the main financial arguments for co-ownership over sole ownership. Understanding operating expenses upfront helps buyers make realistic budget projections and avoid unpleasant surprises.
GoForth, a luxury co-ownership company, splits all operating expenses equally among the four owner families in each property's LLC. Costs are fully transparent and managed by a professional property management team, so owners see exactly where every dollar goes. By sharing expenses four ways, each family pays a fraction of what a sole owner would while still enjoying a fully maintained luxury home.