How Much to Set Aside Monthly for Property Maintenance
Maintaining your rental property requires planning. Major appliances, HVAC systems, roofing, and other components have finite lifespans. In this post, we’ll show you how to calculate a realistic monthly reserve to cover future replacements.
Step 1: Enter Your Property Assets
List all major items, their replacement cost, and estimated lifespan. The calculator will automatically compute the monthly amount you should set aside for each item and the total reserve.
Total Monthly Maintenance Reserve: $0
Step 2: See a Live Chart of Your Maintenance Costs
Step 3: 10-Year Maintenance Savings Projection
Understanding the Monthly Reserve Concept
- Replacement Cost: How much it will cost to replace the item when it reaches the end of its life.
- Lifespan (years): Rough estimate of how long the item will last before needing replacement.
- Monthly Reserve: Replacement Cost ÷ (Lifespan × 12). This ensures cash is available when needed.
- Projection: Shows cumulative savings and replacement events over 10 years.