Which item would be considered a fixed expense when analyzing an investment property?

When analyzing an investment property, fixed expenses are those costs that do not fluctuate with the level of occupancy or the income generated by the property. Real estate taxes fall into this category because they are assessed by local governments based on the property's value and must be paid regardless of whether the property is rented or vacant. These taxes are usually fixed amounts that remain relatively stable over time, making them predictable and easy to budget for.

In contrast, maintenance costs, management fees, and utilities can vary based on usage, occupancy levels, and the type of property being managed. Maintenance costs can be influenced by the condition and needs of the property; management fees can change based on the amount of work involved or the terms of the management agreement, and utility costs can fluctuate with consumption levels. Therefore, real estate taxes are clearly identified as a fixed expense, making them essential for property investors to account for in their financial analyses.