What would be considered an indirect property cost?

Indirect property costs are expenses that are not directly tied to a specific property but rather support the overall operation and maintenance of multiple properties or the organization as a whole. Property maintenance expenses fit this definition well, as these are costs associated with maintaining the general condition and function of the assets, which could encompass multiple properties rather than a singular site or asset.

Purchasing a new machine, utility bills for a specific property, and software costs for tracking inventory tend to be more direct in nature. For instance, buying a machine is a capital expenditure directly influencing specific property investments, while utility bills are incurred in direct relation to a specific property. Similarly, software costs for inventory tracking may be tied to a particular operational function, making them also more direct compared to maintenance expenses that benefit all properties collectively. This characteristic reinforces the classification of property maintenance expenses as an indirect cost since they are essential for the upkeep of multiple properties rather than for individual property specificities.