A maintenance reserve is a dedicated pool of money set aside for future repair and maintenance costs, providing a financial cushion so unexpected repairs don't create cash flow crises.
In practice
A Vancouver WA landlord following the 1% rule draws from their reserve when CRM Services completes major roof work.
Why it matters
Landlords with healthy reserves can approve and fund larger projects without delays.
Common questions
How much should I set aside?+
The common 1% rule: set aside 1% of property value annually.
Is it the same as a security deposit?+
No — a security deposit covers tenant-caused damage. A maintenance reserve covers general property upkeep.
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