Budgeting for capex and repairs

[Kyle Spearin]

Does anyone have a set of criteria for how to determine how much to set aside for capex and repairs? I know it's generally 5-15% of the rent in each instance, but assuming a newer home needs less and an older needs more. Any rules of them that you follow?

[Nathan Gesner]

You have to do the math.

If the roof has 20 years of estimated life remaining, determine replacement cost and divide by 20. That's how much needs to be set aside each year. Repeat for all other capital expenditures and you'll have a good idea of what you need.

It's much easier to just set aside 10% and call it a day.