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Maintenance cost estimator

Estimate annual maintenance reserve as a % of gross rent.

The short answer

$24,000 of gross rent at a 10% reserve is $2,400, and a 30-year-old building adds $720 — budget $3,120 a year, $260 a month.

Maintenance reserve

Annual reserve = the larger of (gross rent × reserve %) and (per-unit reserve × units), plus an age adjustment

Reserve by share of rent
$2,400.00
Reserve by unit count
$600.00
Age adjustment
$720.00
Annual reserve to budget
$3,120.00
Monthly set-aside
$260.00
Show the arithmetic
  • By share of rent: 24000 × 10% = 2400
  • By unit: 600 × 1 = 600
  • Age adjustment: 24000 × 3% = 720
  • Total: max(2400, 600) + 720 = 3120
Worked example

$24,000 of gross rent at a 10% reserve is $2,400, and a 30-year-old building adds $720 — budget $3,120 a year, $260 a month.

Assumptions
  • A percentage-of-rent reserve and a per-unit reserve often disagree; budgeting to the higher of the two is the conservative choice.
  • Older buildings need more. The age adjustment adds 1% of gross rent for every decade of age, which is a rule of thumb, not a survey.

Every figure is calculated from the values you entered. Nothing is fetched from market data, and this is general information rather than financial, legal or tax advice.

Formula

Annual reserve = the larger of (gross rent × reserve %) and (per-unit reserve × units), plus an age adjustment

What you need

  • Annual gross rent
  • Reserve as a share of rent
  • Units
  • Reserve per unit per year
  • Building age in years

Worked example

$24,000 of gross rent at a 10% reserve is $2,400, and a 30-year-old building adds $720 — budget $3,120 a year, $260 a month.

Assumptions and units

  • A percentage-of-rent reserve and a per-unit reserve often disagree; budgeting to the higher of the two is the conservative choice.
  • Older buildings need more. The age adjustment adds 1% of gross rent for every decade of age, which is a rule of thumb, not a survey.

Limitations

Every figure is calculated from the values you enter — nothing is estimated from market data. Real outcomes depend on your state, your lease terms and your property. This is general information, not financial, legal or tax advice.

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