There is a saying among professionals in the field of property management: “unexpected expenditures may be expected.”

Roof repair, boiler replacement, outside masonry repair and expenses due to flood or other catastrophe not covered by insurance are only a few of the unforeseen contingencies that can arise.  Any budget forecast, from an operating budget to a five-year projection, should provide for reserve funds under the expense category.


Tip from Crossett Real Estate Services

Our policy is to deduct five percent (5%) of rental income to be placed in escrow or reserve funds for capitol improvements or replacements, including but not limited to the unexpected. We also  discuss and plan a five (5) year forecast/a turnover sale: reaching and understanding the goal of the Client/Owner is our priority.