Why are rental repair/maintenance reserves a percentage of rents?
I'm confused how using setting aside a percentage of rents for repairs makes sense. And where does that number come from? A $600/mo rental and a $2500/mo rental may have the same reroofing or repipe or mainline or HVAC cost. Saving 10% of $600/mo for 5 years won't get you a new roof where I am. Saving 10% of $2500/mo for 5 years will be more than enough. I had a mainline repair on a rental with a $700 rent after owning it for 1 year. No percentage was going to cover that.
Why the percentage? Wouldn't it make more sense to plan for the actual repair?