Owning a place that sits empty sounds harmless. No wear and tear. No tenant headaches. In reality, a vacant home quietly eats money and time, especially where carrying costs run high and enforcement is strict. Whether you inherited a house, moved before selling, or are waiting out the market, here are the costs that most owners underestimate and how to keep them from snowballing.
- Taxes
Let’s group property taxes and the other taxes that tag along, because the total bite is what matters.
Property taxes do not pause just because the house is empty. In the city, your assessed value and tax class keep chugging along. Outside the city, towns still assess and bill on schedule. Vacancy almost never earns you a break, but it can create headaches. Miss a quarter and late fees add up fast. Let a balance linger and you risk a tax lien sale or penalties that are far more painful than the original bill.
Other taxes come into play based on your situation:
• If you used the home as a rental before it went vacant, you may have taken depreciation. When you sell, depreciation recapture can raise your tax bill, even if the place has been empty for months.
• If the property is an investment, capital gains may apply on sale. Timing matters. Long holding periods can help, but market dips can trap you into waiting longer and paying more in carrying costs.
• If you keep the home in an LLC, expect annual filing fees and minimum taxes even if there is no income.
• In some suburbs, special assessments for sewers or sidewalks hit vacant homes the same as occupied ones.
Practical tips
• Put tax bills on auto pay and calendar alerts. One missed quarter can wreck a carefully planned budget.
• If you expect a long vacancy, ask the tax office about any hardship or payment plan options. Not common, but worth a phone call.
• Track your basis and any improvements. Clean records reduce capital gains and recapture surprises later.
• If you are between tenants and intend to rent again, speak with your accountant about carrying costs that may remain deductible. Do not assume. Ask.
- Insurance
Regular homeowners insurance and vacant properties do not mix well. Most standard policies have a vacancy clause after 30 or 60 days. Past that window, coverage can be limited or denied for common losses like vandalism or water damage. Some carriers will drop the policy entirely if they learn the home is unoccupied.
The fix is a vacant property policy or a dwelling fire policy that allows vacancy. Expect higher premiums. In my experience, you might see 50 to 100 percent more than a standard owner occupied policy, and the coverage is often narrower. Vandalism, theft of building materials, and water damage from frozen pipes are the big risks. If the home has known issues like an older roof, knob and tube wiring, or an oil tank, the underwriting hurdles get taller and the price follows.
Practical tips
• Call your agent before the home goes vacant. You want the right form in place on day one.
• Confirm coverage for water damage from freezing, vandalism, and liability. Do not assume these are included.
• Ask about monitoring credits. Insurers often give a discount if you install a central station alarm, leak sensors, or low temperature monitors.
• Get named insureds right. If the title sits in an estate or LLC, the policy needs to match.
- Repairs and routine upkeep
Empty does not mean idle. It means no one is there to catch small problems before they become big ones. I have opened plenty of vacant houses to find a simple wax ring leak at a toilet that ran for weeks, or a slow drip in a mechanical room that turned into mold, or squirrels testing the soffit until they had a duplex of their own. Water and time are the costly combo.
Typical silent killers we see
• Freeze and thaw. Unheated spaces and poorly insulated pipe runs will burst. The leak might not be obvious until ceilings sag.
• Humidity and mold. Basements with poor ventilation grow a fur coat on every cardboard box within a month in summer.
• Roofs and gutters. No one clears leaves. Water backs up and finds its way in behind fascia or through a flashing seam.
• Pests. Squirrels, raccoons, or birds can do more damage in two weeks than you would believe. Mice chew wiring insulation.
• Exterior neglect. Peeling paint, loose handrails, and cracked sidewalks turn into violations and, in the city, fines.
Typical costs when no one is watching
• Burst pipe and flood dry out with mold remediation: 5,000 to 20,000 depending on area and finishes
• Roof patch and interior repair after a clogged gutter: 2,000 to 8,000
• Basic winterization and de winterization each season: 300 to 1,200
• Monthly lawn care and snow service to avoid tickets: 150 to 400 per month across the season
• Pest exclusion after critters move in: 500 to 2,500 plus patching
Practical tips
• Winterize properly if the heat will be set low. That means shutting off and draining the domestic water, blowing down lines, and using non toxic antifreeze in traps.
• If you keep heat on, hold 55 to 60 degrees and have a low temp alarm that calls or texts you.
• Clean gutters every fall, even if the house is empty. Two trips are cheaper than one ceiling repair.
• Schedule a monthly walkthrough with photos. Either you, a trusted neighbor, or a caretaker. A ten minute check can save thousands.
• Empty the fridge, prop appliance doors open, and remove soft goods to avoid smells and mold.
- Utilities and services
Turning everything off is not practical. A vacant home still needs a baseline of utilities to stay healthy and secure.
Electric
Even with no one living there, the sump pump, dehumidifier, alarm, Wi Fi, and a few lights on timers need power. Some utilities have minimum monthly charges. If the power is shut, reactivation can take days and often carries a fee. That delay matters if you need heat for a cold snap or a contractor needs power for a repair.
Water
If you do not winterize, you need water on for the heating system and to keep traps wet. City water bills may be estimated if you do not submit reads, which can cause weird spikes. In some towns, a long period with zero usage can trigger a usage investigation or a minimum bill anyway.
Gas or oil
For hydronic heat, most owners keep the boiler on at low setpoints through winter. That costs fuel but is cheaper than repairing freeze damage. Oil tanks that sit can develop sludge problems. If the system is gas, the utility may require a relight appointment after a shutoff.
Trash and cleaning
If you let trash service lapse and the yard becomes a drop spot, expect complaints and possible fines. Same goes for leaf pickup and snow. Many cities are strict on clearing sidewalks within set hours after a snowfall. Empty house or not, the owner is responsible.
Security and monitoring
Central station alarm monitoring and basic cameras run 30 to 60 per month. Internet keeps them alive. If you cancel internet to save money, you may lose your monitoring discount on insurance and you lose eyes on the property.
A quick sample budget for a modest vacant house near the city
• Insurance on a vacant policy: 150 to 350 per month
• Electric and internet for minimal loads and monitoring: 75 to 150 per month
• Gas or oil to hold 58 degrees in winter, averaged across the year: 60 to 180 per month
• Lawn, snow, and occasional cleaning or gutter work averaged across the year: 100 to 250 per month
• Alarm monitoring: 30 to 60 per month
Add property taxes on top and you can see why carrying a place for six months costs more than people expect.
Practical tips
• Put lights on simple plug in timers so the house looks lived in from the street.
• Install a couple of Wi Fi leak sensors near mechanicals and under sinks. They cost little and catch problems early.
• If you do a full shutoff, tag every valve and breaker. Leave clear instructions on site. Future you and any contractor will thank you.
• Share a lockbox code only with people who truly need it. Rotate codes if a contractor finished work or a sale fell through.
- Risk and liability
Vacancy amplifies every risk category. Some are obvious, like break ins. Some are not.
Break ins and vandalism
Thieves can spot a dark house from the corner. We have had copper ripped from basements in under an hour. Even one broken window invites weather inside and pests later. Boarding windows looks harsh and can trigger neighbor complaints, but one discrete board on a basement window that is out of street view is cheaper than a second break in.
Squatters and unauthorized occupants
It is rare, but it happens, and it is slow to unwind. A strong door, good locks, and regular visits help. Mail piled at the door is a welcome mat for the wrong people. Forward it or have someone collect weekly.
Liability if someone gets hurt
If a delivery person slips on an icy sidewalk or a kid trips on a broken step, the owner is still on the hook. Sidewalk liability around a one to three family house is typically on the homeowner except for limited cases like city tree roots. Make sure the liability limits on your vacant policy are realistic.
Violations and city notices
In the city, a vacant property can rack up violations without anyone noticing. Examples I have seen
• Sidewalk trip hazard notice that turned into a violation and later a lien when the certified letter sat unopened
• Yard overgrowth and litter notices in the outer boroughs that result in a city contractor cleaning the lot and billing the owner
• Department of Buildings violations for unsafe conditions after a neighbor called about a loose railing or open window
Market risk and time risk
Carrying a vacant home for six to twelve months while waiting for a magic number can backfire. Small price moves plus carrying costs often equal a lower net. I have had sellers realize that three months of waiting cost more than the price reduction they refused in spring. On the flip side, rushing a sale before addressing a few visible issues can also cost you. The trick is to plan a tight timeline with defined go or no go checkpoints.
Practical tips
• Put the property on a basic inspection routine. A 15 minute visit every two weeks to check windows, mechanicals, roof leaks, and mailbox.
• Use sensors. A low temp alert, door contact, and a couple of leak detectors reduce sleepless nights.
• Keep exterior tidy to avoid complaints. Cut grass, trim hedges, pick up flyers.
• Post clear no trespassing signs where appropriate.
• Photograph the condition of the home when it goes vacant. If something happens, you will want a baseline for insurance.
How to lower the damage while you decide what to do
Below is the approach I suggest to clients who think they will keep a place empty for more than 30 days.
- Level set the true monthly cost
Write down property taxes divided by 12, the vacant policy premium, and the utility minimums. Add seasonal services averaged over the year. Seeing the real number on paper keeps decisions grounded. - Choose one of three operating modes
• Warm idle. Heat on low, water on, weekly or biweekly checks, alarm, internet alive. This is right for short gap periods and when you need the home to show well for sale.
• Cold idle. Fully winterized and shut, heat off or set very low, alarm with cellular communicator. This works for long vacancies, but plan for a de winterization budget when you are ready to show or sell.
• Caretaker model. Pay someone to live on site lightly furnished and keep the house warm and watched. You still carry utilities, but you reduce break ins and catch problems early. Screen carefully. - Fix the top five preventable problems
• Gutters and roof flashings
• Foundation and basement moisture
• Exterior locks and the weakest door
• Heat and low temperature monitoring
• Any active or suspected leaks - Plan a hard timeline
Example. If not sold by March 15, winterize and shift to cold idle. If not rented by September 1, review price and decide whether to list for sale by October 1. The goal is to avoid soft drift where you pay month after month without a clear plan. - Document everything
Keep a simple log of visit dates, meter readings, thermostat settings, photos, and any minor fixes. It helps with insurance and resale.
Bottom line
Vacancy is not free. The true cost is taxes, insurance, repairs you do not see yet, quiet utility and service bills, and the risk that comes from an empty building. If you build a small plan and schedule a few basic checks, you can carry a vacant place without expensive surprises. If you ignore it, the house will quietly send you the bill anyway.