Maintenance Reserve Per Unit
Calculator
Results
- Annual maintenance reserve
- 38,400
- Monthly maintenance reserve
- 3,200
- Reserve per unit per year
- 960
- Reserve per unit per month
- 80
Property management results
| Annual maintenance reserve | 38,400 |
| Monthly maintenance reserve | 3,200 |
| Reserve per unit per year | 960 |
| Reserve per unit per month | 80 |
formula-map diagram
- Annual maintenance reserve
- 38,400
- Monthly maintenance reserve
- 3,200
- Reserve per unit per year
- 960
- Reserve per unit per month
- 80
Property management relationship
Formula
Maintenance reserve = gross potential rent × reserve % ÷ 100= 38400
Note
This is a simplified model: it applies the standard property-management definition to the numbers you entered. Rent affordability uses a flat share-of-income rule and ignores credit history, local screening criteria and household size. Proration assumes a plain daily rate; your lease or local law may prescribe a different convention (for example a fixed 30-day month). Security-deposit interest is simple interest at the rate you enter, while many jurisdictions set the rate, the compounding and the payout schedule by statute. Income, expense, reserve and escalation figures are straight-line and assume the amounts you enter hold steady; they ignore taxes, depreciation, financing changes, capital events, inflation and market turnover. Lease buyout compares the contractual penalty with the remaining rent only and is not a reading of your lease. These results are general information, not legal, tax or investment advice: check your lease and local tenancy law and consult a qualified professional before acting.
More in Property management
See all →Frequently asked questions
What is a maintenance reserve per unit meant to cover?+
This reserve covers routine, recurring repairs and upkeep — things like appliance repairs, plumbing fixes, painting between tenants, and general wear and tear — as opposed to major capital replacements like a new roof or HVAC system. It's usually expressed as a fixed dollar amount set aside per unit per year.
How is a typical maintenance reserve amount determined?+
A common industry rule of thumb sets $250-$500 per unit per year for newer, well-maintained properties, rising toward $750-$1,000+ for older buildings or ones with heavier wear. The right number should really be based on the property's age, unit finishes, and its own maintenance history rather than a blanket rule when historical data is available.
Is the maintenance reserve the same as actual repair spending in a given year?+
No — the reserve is a budgeted, smoothed annual amount meant to absorb the fact that repair costs are lumpy, with some years well under the reserve and others well over. The reserve exists precisely so that an unusually expensive repair year doesn't blow up cash flow projections.
How does the maintenance reserve differ from a capital expenditure reserve?+
Maintenance reserves fund small, frequent repairs (a broken faucet, a repainted unit), while capital expenditure reserves fund large, infrequent replacements (roof, siding, major mechanical systems) that are typically capitalized rather than expensed. Both should appear in a proforma, but they serve different purposes and are usually sized very differently per unit.
Should the maintenance reserve scale with the number of units or with property age?+
Both matter: the reserve is applied per unit, so it scales linearly with unit count, but the per-unit rate itself should increase as a property ages and systems wear down. A 5-year-old building and a 40-year-old building with the same unit count should not use the same per-unit reserve figure.