Which of the following best describes "fixed expenses" in real estate?

Fixed expenses in real estate refer to costs that do not vary with occupancy levels or the operational activity of the property. These expenses remain constant over a period, whether the property is fully occupied, partially occupied, or even vacant. Examples of fixed expenses might include property taxes, insurance premiums, and certain maintenance contracts that need to be paid regardless of the level of occupancy.

Understanding this concept is essential for property management and investment analysis, as it helps in budgeting and forecasting cash flows. Contrasting fixed expenses with variable expenses, which do change based on factors like occupancy rates, highlights the stability that fixed expenses provide in financial planning; they're predictable costs that owners can rely on throughout the budgetary period.