Maintenance Reserve
Definition
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.
Common Questions
Real-World Example
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.
Related Services
Related Terms
Capital expenditure (CapEx) refers to major property improvements that increase long-term value, lik...
Deferred maintenance refers to repairs and upkeep that have been postponed over time. When maintenan...
Preventive maintenance is the practice of regularly inspecting and servicing property systems and co...
Capital expenditure (CapEx) refers to major property improvements that increase long-term value, lik...
An annual maintenance plan is a subscription-based service where homeowners pay a recurring fee in e...
A bulk maintenance contract is a service agreement between a property manager and a contractor cover...