Excess Maitenance Budget? What to do?

[Mitch Brunette]

Hi All

Wondering what you do if you are in a situation as I am?

I budgeted 5% maintenance on my property, and my first tenant came and went and I literally had zero cost in maintenance when they left. I didn’t even have to clean it. I had to clean a sink drain that was clogged from rice, long story but I did it myself in about an hour.

My next tenant moved in, and I just walked the property since we are 60 days out from lease renewal and they are signing either a 1 or 2 year lease. I swear the house looks nicer than when I gave it to them 10 months ago! Incredibly clean, well decorated, I almost wanted to take pics for the next time it is vacant, they basically “staged” it for me.

Anyway, now I have nearly 2 years of maintenance budget and nothing to spend it on.

What do you all do with that? Its about $2100 in excess, and if they stay the course for one or two more years it’ll grow.

Capex is separate above and beyond the $2,100. And my biggest looming planned expense is a $3,000 furnace when this one gives up (well past its life expectancy but still running great), I have that set aside in capex along with carpet replacement.

So do you sit on the $2,100 and assume some disaster tenant will use that budget up down the road? Or take it as more cashflow this year? Reinvest it in the property? Use it toward downpayment on another property?

I also set aside 5% vacancy, and since this tenant is renewing, I will have zero days vacant and instead of full firsts month rent to the PM, they charge $350-500 renewal. So again, excess funds that had been planned on.

Thanks, interested in seeing responses from the community!