What costs remain constant regardless of occupancy levels, such as property taxes and insurance?

The correct answer is fixed expenses. Fixed expenses are costs that do not fluctuate based on the occupancy levels of a property. This means that regardless of whether a property is fully occupied, partially occupied, or vacant, expenses such as property taxes and insurance remain unchanged.

Understanding fixed expenses is crucial for property management and investment analysis because it allows property owners and managers to create stable financial projections. These fixed costs must be covered regardless of income fluctuations due to changes in occupancy, making them a foundational aspect in assessing the overall financial health of a property.

In contrast to fixed expenses, variable expenses change with occupancy levels, meaning their total cost might increase or decrease based on how many tenants are occupying the space. Operating expenses refers to the costs associated with the day-to-day functioning of a property, including maintenance and utilities, which can also vary. Dependent expenses is not a standard term in real estate finance and does not apply in this context. Thus, fixed expenses is the most accurate and applicable choice.