There are many ways to budget for maintenance. Some owners use a multiple of monthly rent (1.5% – 2% is common. Therefore, if the rent is $1,000 per month, you should consider keeping 1.5%-2.0% x of $1,000 or $1,500-$2,000 in reserve to pay for potential emergency repairs. Alternately, some owners use a percentage of the property value such as 2%-3%. If you adopt this strategy, and if your rental’s value is $100,000.00, you should consider keeping $2,000-$3,000 in reserve. Whatever strategy you adopt, what is important is that you have a maintenance and repair budget plan. This budget is a part of being in the business of owning rental property. For more information call RPM South Orlando at 407-982-2000
Emergency Repairs/Maintenance form Real Property Management South Orlando
What is considered an emergency? Generally, state or local laws define an “emergency” as anything that must be fixed immediately so that the renter can safely live in the rental. Some examples include:
• No heat during winter months or air conditioning during hot summer months
• Loss of power/water
• Flooding
• Clogged toilet when the unit only has one toilet
• Security issues (damage from a break-in or from a natural disaster)
• Legal notices from housing or city inspection departments
For more information call RPM South Orlando at 407-982-2000