Maintenance Allowance

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Maintenance allowances are put on performance sheets to help investors budget for future repairs.  An investment home, just live a primary residence, has repairs from time to time.  To think an investment home would never need maintenance and repairs would be a poor assumption.  Although estimating maintenance is not an exact science, we like to have some budget on an annual basis put in place so that your investment projections can be more accurate.  You will want to budget higher or lower depending on different factors such as age of major components (roof, a/c, water heater, etc).  This is not held in an account by your management company, just shown on the performance sheet to help set expectations and help evaluate the performance of a property.

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