Maintenance fees amount

[Delvon A Byrd]

What is a good percentage to take out of the rental property income for maintenance?

[John Warren]

@Delvon A Byrd it depends if you are doing this just to analyze a deal to make a purchase decision, or if you are actually maintaining a property that you own. In real life, the numbers will probably not follow percentages very accurately at all. Mostly, it will depend on whether you have recently done a major rehab to get a property in to tip top shape, or if you have inherited an older property with a lot of deferred maintenance. I own several properties in the Berwyn and Lyons areas here outside of Chicago where we had almost no maintenance calls for months on end. I also have properties where we have had many, many calls! Mostly this is due to not having had a lot of maintenance done by previous owners over the years.