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Home/Planning a property maintenance reserve

Investing and calculations

Planning a property maintenance reserve

Large repairs are not monthly, yet they affect investment results. Build a reserve for setup, repairs and building condition rather than leaving them out of yield calculations.

Practical steps

  1. Record known repairs and the age of appliances and shared systems.
  2. Separate immediate expenses from an annual reserve for future work.
  3. Recalculate yield with those costs and seek an inspection if damage appears.

A point to check

A generic maintenance percentage cannot replace inspection of a specific building.

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