A Maintenance Reserve is a fund set aside by the property manager on behalf of the property owner to cover the costs of ongoing maintenance and repairs for their rental properties. It serves as a financial buffer, ensuring that the necessary funds are available in the Property Manager's Rental Trust account for unexpected repairs or regular maintenance tasks related the the Owner’s Property
According to TouchPoint PM's Management Agreement Section 7e and 7f
Maintenance Reserve:
“Retain such amounts from Owner's rental proceeds as may be necessary from time to time to pay expenses associated with the management and operation of the Property for which Owner is responsible hereunder. Broker will establish and maintain a reserve fund on Owner's behalf in the amount of $500. from which expenses may be paid, but Owner acknowledges and understands that Broker may from time to time retain additional amounts as Broker notifies Owner in advance in writing are reasonably necessary; Negotiate partial refunds with tenants if, in Broker's reasonable opinion, the tenant's use and enjoyment of the Property has been or will be materially and adversely affected as a result of a defect in the condition of the Property (such as a repair to the electrical, plumbing, sanitary, heating or ventilating facilities or a major appliance that cannot be made reasonably and promptly).”
Maintenance Threshold:
Make arrangements on Owner's behalf for any repairs which, in Broker's opinion, may be necessary to preserve, maintain and protect the Property; provided, Broker may not make arrangements for any repairs that exceed $500. without prior approval of Owner, except that in the case of an emergency, Broker may, without prior approval, make arrangements for whatever expenditures on behalf of Owner that are reasonably necessary to preserve the Property or prevent further damage from occurring;
Please be informed that before your tenant moves out, we will temporarily increase your Maintenance Reserve from $500 to $1000. This is to budget sufficient funds for performing maintenance tasks needed to get the home ready to put back on the market and find a new tenant. Our experience has shown that by doing this, we are able to shave off one week of costly and unnecessary vacancy time because we do not need to wait for the owner to allocate funds for maintenance purposes.
Please note that no maintenance will be performed without your approval if it exceeds $500. Once the new tenant moves in, we will lower the maintenance reserve back down to the usual amount of $500.
Thank you for your cooperation, and please do not hesitate to contact us if you have any queries or concerns.