Anyone actually track cost per system, or does everyone just lump it into one mainten

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Anyone actually track cost per system, or does everyone just lump it into one mainten

Giuseppe Cavucci
online · Member since 2026 · 99 posts · 44 votes

Curious how granular people actually get with this.

Some of the replies on my last thread here got me thinking. A few people track age and remaining life per system (roof, HVAC, water heater, etc.) and set aside a specific amount for each one. Others seem to just keep one general "maintenance/repairs" bucket and don't split it out further. 

If you do track it per system, do you actually update the numbers over time (like when a component ages another year, or after a repair), or did you set it once and mostly leave it? And if you don't split it out, has that ever bitten you, like two systems needing replacement around the same time and the general bucket not being enough to cover both? Genuinely trying to figure out if per-system tracking is worth the extra effort or if it's overkill for most portfolios.

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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    2mo

    @Giuseppe Cavucci, Whether the extra effort is worth it operationally is more of a reserves and cash management question, so I'll leave that piece to others here running their own portfolios.

    Where the tax side actually rewards per-system tracking, splitting out age and remaining life by system, roof, HVAC, water heater, is exactly the data a cost segregation study needs, and it also matters when something eventually gets replaced. When a full system like a roof or HVAC unit gets swapped out, you can write off the remaining undepreciated basis of the old one through a partial disposition instead of just continuing to depreciate an asset that no longer exists, but only if you know what that old component's basis actually was, which requires it being broken out separately in the first place. A general maintenance bucket makes that basically impossible to calculate cleanly, so anyone doing bigger replacements down the line is leaving that deduction on the table without per-system records.

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  • Richard F.
    Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    2mo

    For any accounting setup for property, you should have a "Chart of Accounts" with multiple categories for income and for expenses. Plumbing, Electrical, HVAC, Doors & Windows, Roofing, Exterior Paint, as well as Taxes, Insurance, Management Fees, etc. in order to track in general terms. Each category can be further broken down to a finer detail where needed, depending on the property. For Multi-fam properties, simply adding the unit number to the start of every entry makes it pretty easy to track. Different apps may have better or worse reporting capability, but the info would be there one way or another.

    Your monthly statements should clearly show income and expenses, for the reporting month AND Year to Date for each of those categories. Your December report would then clearly show category totals for the year.

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  • Jim Johnson
    Real Estate Agent · Memphis · Member since 2026 · 552 posts · 319 votes
    2mo

    We track the major systems individually rather than relying on one general maintenance bucket. It doesn't have to be overly complicated, but knowing the age and expected replacement window for the roof, HVAC, water heater, and other big-ticket items makes budgeting much more realistic.

    We also update those records whenever a major repair or replacement is completed. It takes a little more effort upfront, but it's helped avoid situations where multiple capital expenses hit at the same time and catch an owner off guard.

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    2mo
    Quote from @Giuseppe Cavucci:

    Curious how granular people actually get with this.

    Some of the replies on my last thread here got me thinking. A few people track age and remaining life per system (roof, HVAC, water heater, etc.) and set aside a specific amount for each one. Others seem to just keep one general "maintenance/repairs" bucket and don't split it out further. 

    If you do track it per system, do you actually update the numbers over time (like when a component ages another year, or after a repair), or did you set it once and mostly leave it? And if you don't split it out, has that ever bitten you, like two systems needing replacement around the same time and the general bucket not being enough to cover both? Genuinely trying to figure out if per-system tracking is worth the extra effort or if it's overkill for most portfolios.

    I'm sure some vibe-coder will come up with something to do this, but currently there's no easy way to do this.

    Most investors are not formally setting aside funds for maintenance or cap-ex.
    They're usually using all available funds for growth or renovations.

    They rely on a HELOC, LOC or credit card to cover them.

    As your portfolio grows & ages an investor's cashflow usually improves where they can fund maintenance & cap-ex from cashflow.
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  • Ryan SpathBusiness Member
    Real Estate Agent · Boise, ID · Member since 2017 · 560 posts · 376 votes
    2mo
    Quote from @Giuseppe Cavucci:

    Curious how granular people actually get with this.

    Some of the replies on my last thread here got me thinking. A few people track age and remaining life per system (roof, HVAC, water heater, etc.) and set aside a specific amount for each one. Others seem to just keep one general "maintenance/repairs" bucket and don't split it out further. 

    If you do track it per system, do you actually update the numbers over time (like when a component ages another year, or after a repair), or did you set it once and mostly leave it? And if you don't split it out, has that ever bitten you, like two systems needing replacement around the same time and the general bucket not being enough to cover both? Genuinely trying to figure out if per-system tracking is worth the extra effort or if it's overkill for most portfolios.


     I am actually working on this now. Currently we save a % of Gross rents, we have a certian amount already set aside in an account if this account drops below X we put more into this. 

    Currently this doesnt matter as much for us bc I am an active realtor and receive active income. Thinking down the line , say 20 years I may not want to be active and have actually been thinking of this a bit. In order to be more accurate I believe this needs to be a per item, per useful life situation. We made an excel sheet for this, basically you input the cost of each thing, it has a useful life, current age, and remaining life. We havent perfectedt this yet but I am highly considering this as I want to rely on re income 100%.

    Another thought I have is this, making sure you have enough paid for properties that they simply cover the costs. I dont think there is a perfect answer for this, I would be interested to hear what you decide to do.

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  • Mike FisherBusiness Member
    New Lenox, IL · Member since 2024 · 98 posts · 55 votes
    2mo

    I track per system but keep it light so it doesn't turn into a second job. Roof, HVAC, water heater, and the big appliances each get a rough replacement cost and a remaining life, and I recalc once a year plus reset the clock whenever something actually gets replaced. That's maybe 20 minutes a property a year.

    The reason I don't just lump it: the one-bucket approach works fine right up until two systems go in the same 12 to 18 months, and on an older building that happens more than people expect. A furnace and a roof landing together will drain a general reserve fast, and then a normal repair month turns into an owner asking where the money went. Splitting it out is really just making sure the roof money is quietly sitting there before the roof asks for it.

    For a couple of newer units it's probably overkill and one reserve is fine. Once the buildings have some age on them or you add doors, per system earns the small effort.

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