Reserve Release Timing Calculator

Reserve releases unlock deferred capital.

Reserve balance

Annual release eligibility

Release cap % of eligible

Years to full release

Year 1 release

$400,000

Total released over period

$2,000,000

Remaining at end

$500,000

How the math works

Year 1 release = min(eligible × cap %, balance / years).

$500k × 80% = $400k Y1 release. $2M released over 5 yr. $500k remaining.

How to Use

Enter reserve balance.
Enter annual release eligibility.
Enter release cap %.
Enter years to full release.
Read release schedule.

Frequently Asked Questions

Common reserves?

CapEx reserve (ongoing). TI/LC reserve (builds with each lease). Tax/insurance escrow (monthly). Interest reserve (construction/lease-up). Each has different release mechanics and documentation requirements.

Release mechanics?

CapEx: documented qualifying work, invoice-based. TI/LC: as tenant build-out complete. Tax/insurance: on payment due. Interest reserve: as DSCR thresholds met. Loan payoff: full release at closing (minus holdbacks).

Planning?

Reserve releases are forecastable cash flow. Include in annual budget. Coordinate with capital plan (release funds CapEx, preserving owner capital). Don't let reserves accumulate indefinitely — unproductive capital.

What documentation matters here?

Written leases, move-in/move-out inspections with photographs, ledger entries showing every payment and charge, served notices with proof of service, and contemporaneous emails or texts. Courts weigh written evidence heavily; informal understandings rarely stand. Institutional operators run a monthly file audit to catch gaps before they matter. Good paper trails recover most of what's owed.