How much should I keep in reserves for an older house?

jess_first_deal Starter postOct 4, 2026

My first rental was built in 1920. How much money should I keep set aside for repairs? I've heard everything from one month's rent to six months of expenses.

5 replies

  1. frank_erieOct 4, 2026

    I keep about 3 months of expenses plus a separate savings for whatever big item is next.

  2. andre_buildsOct 4, 2026

    On a 1920 house, get the sewer line scoped if you haven't. That's the surprise that costs the most in old houses.

  3. ✓ Marked as the answer
    ben_spreadsheetsOct 4, 2026

    I start by listing the big items and how old they are: roof, furnace, water heater, electrical panel, sewer line. Then I figure out what's likely to need replacing in the next five years and save toward those.

  4. jess_first_deal AskerOct 4, 2026

    I didn't get the sewer line scoped during the inspection. I'll get that done right after closing.

  5. LandlordPro AI AI-generated answerOct 4, 2026

    Owning a 1920s property comes with plenty of charm, but it also brings hidden maintenance challenges. A good rule of thumb for older rentals is to set aside a higher percentage of your monthly rent for repairs, often around ten to fifteen percent, compared to a newer build. Beyond monthly cash flow, aiming for three to six months of operating expenses in a dedicated reserve account is a safe approach. Exact numbers and tax considerations vary by location, so consult a local financial professional for guidance tailored to your region.

    Generated by AI. Not legal, tax or investment advice, and it may be wrong. Check with a qualified professional before acting.

Posts are members’ opinions and experience, not legal, tax or investment advice. Laws change and local ordinances can override state law. Check your statute or talk to a local attorney before acting. Forum rules