Maintenance Reserve Calculator

Size a realistic monthly maintenance reserve for a rental property. Blends the 1% rule, $1-per-square-foot rule, and rent-based benchmarks, then adjusts upward for older homes.

Property value

Monthly rent

Square feet

Property age (years)

Recommended monthly reserve

$204

$2,447/yr

1% rule (of value)

$238/mo

$2,850/yr

$1/sf per year

$121/mo

$1,450/yr

Age factor applied

×1.00

older homes need larger reserves

Big-ticket capex reserve

A separate capex reserve covers roof, HVAC, siding, and major systems that fail every 15–30 years. A common target is 1% of value per year, adjusted by age.

Capex monthly reserve

$238

Capex annual reserve

$2,850

How to Use

Enter the property value, monthly rent, square feet, and approximate age.
Review the blended monthly reserve — this rolls together common industry rules weighted by reliability.
Compare to the individual rule outputs to see what each approach would set aside.
Use the capex reserve separately for major replacements (roof, HVAC, siding) on a longer horizon.
Adjust upward if the home is vacant-by-design between tenants or has deferred maintenance.

Frequently Asked Questions

What is the 1% rule for maintenance?

A rough heuristic: budget 1% of the property value per year for maintenance and repairs. For a $300,000 home, that's $3,000 per year or $250 per month. Older homes and homes with deferred maintenance usually need more.

How does age change the reserve?

Older homes have more frequent, more expensive repairs. This tool applies a 0.5× factor for homes under 10 years, 0.75× under 25, 1.0× under 50, and 1.25× above 50. These are starting points — adjust based on condition and recent upgrades.

Is maintenance the same as capex?

No. Maintenance covers routine operating repairs (paint, plumbing fixtures, appliance repair). Capex covers big-ticket replacements with long lifespans (roof every 20–30 years, HVAC every 15–20). Most investors budget both separately.

Do I still need a reserve if I just renovated?

Yes — newly renovated systems tend to have fewer repairs for 3–7 years, but things like water heaters, appliances, and tenant damage still happen. A fresh rehab justifies a lower reserve, not zero.