What counts as Cap Ex?

[Ryan Kenneth]

Hi all!

What do you guys consider to be a cap ex item?

Each month I set aside a percentage of rent collected and place it in a savings account so that it builds up and is eventually ready to go towards the costs of large cap ex items that come up (roofs/furnace/driveway etc).

One of the more common expenses that comes up is on unit turnover where a tenant has stayed for years and the unit needs new floors/paint before the next tenant moves in.

Does anyone consider those to be cap ex? Are you dipping into your cap ex reserve fund to cover those?

Thanks guys

Ryan