Real Estate Investing

Maintenance Reserve

Definition

What is Maintenance Reserve?

Money set aside for future repairs and replacement of property components.

Example in practice

The owner saves part of rent for roof and plumbing repairs.

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Land and buildings held for use, rental income, development, or appreciation.

Property designed mainly for people to live in.

Property used for business purposes, such as offices, shops, or warehouses.

A REIT performance measure that adjusts net income for real-estate depreciation and certain property-sale gains.

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