Renting & managementAll terms starting with M
Maintenance reserve
Money set aside monthly for routine repairs, so ordinary problems do not become cash-flow emergencies.
A maintenance reserve covers the ordinary and recurring: appliance repairs, plumbing calls, minor damage. It is distinct from a CapEx reserve, which funds large replacements.
Older properties and those with deferred maintenance need larger reserves. The reserve is what keeps a broken water heater from becoming a financing problem.
Related terms
- CapEx (Capital expenditures)Large, infrequent replacements (roof, HVAC, water heater), budgeted monthly even though they are paid rarely.
- Operating expensesThe recurring costs of running a property: taxes, insurance, management, maintenance, and owner-paid utilities.
- Cash flowWhat remains each month after rent has covered operating expenses and debt service.
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