The maintenance rate is an estimated percentage of a property’s value or income set aside each year for repairs and upkeep. It’s a planning tool investors use to project long-term expenses like HVAC repairs, roof maintenance, or appliance replacement. A common rule of thumb is 1% of the property’s value annually, though this can vary depending on age, size, and location. Meridian uses a realistic maintenance rate in our pro forma to help buyers plan for the true cost of ownership—especially helpful for out-of-state investors who want predictable cash flow.
