Properties have an Operating Reserve to handle repairs
Subodh M
Last Update één jaar geleden
Every property has an Reserve, utilized for repairs. The balance of the Operational Reserve is approximately 5% of the property's purchase price.
Repairs are managed either by the professional Property Manager's in-house vendors or by local contractors hired by the Property Manager. All urgent repairs will be addressed immediately, and any non-urgent repairs requested by the tenant will be subject to a Governance Vote. The property owners can then decide whether they prefer the repair to be carried out.
If a portion of the Reserve is used, but the balance remains above 50%, owners vote to apply 10% of income to replenish the reserve until it is fully restored to 100%.
If the Reserve falls below 50%, owners vote to apply 100% of income to replenish the reserve until it reaches 50%, and then apply 50% of income until the reserve is fully restored to 100%.
The balance of the Reserve is part of the property value. Consequently, the property will increase in value as the Reserve is full.