Maintenance Reserve

A maintenance reserve is accumulated funds set aside for future major repairs and capital replacements, ensuring long-term building sustainability without special assessments.

Reserve PurposeTypical Timeframe
Roof replacement20 to 30 years
Elevator modernization15 to 25 years
Facade repairs10 to 20 years
MEP system replacement15 to 25 years
Pool resurfacing10 to 15 years
Parking lot repaving10 to 15 years
Reserve FundingApproach
Percentage of service charges10% to 20% allocated to reserve
Per unit contributionAED 1,000 to 5,000 annually
Target reserve balance3 to 6 months operating expenses
Long-term target30% to 50% of replacement cost
Special assessmentsAvoid by proper reserve planning


Related Terms

Service ChargesCapital Expenditure (CapEx)HOASinking FundReserve FundProperty Management

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