Gatavia · Financial management for accommodations · 2026

How much to reserve for the maintenance of a tourist home: budget and example

A property can end a summer with many bookings and seem very profitable. Until the air conditioning breaks down, mattresses need to be replaced, or an unforeseen repair arises. The problem is often not just the breakdown: it’s not having set aside money to address it.

What expenses should be included in the maintenance budget

• Preventive: HVAC inspections, equipment checks, pool maintenance when applicable, moisture detection, plumbing, locks, and security.
• Corrective: repairing a blind, replacing a part, fixing a leak, or addressing an electrical failure.
• Replacements: renewing mattresses, small appliances, sofas, bedding, tableware, or other items at the end of their useful life.
• Extraordinary: unforeseen breakdowns with high costs. They require a cash cushion, not just an operating budget.

Do not mix these concepts with cleaning between guests, channel commissions, or regular consumables: these are operating costs that have their own budget line. Also, do not budget for the same task twice if it is included in the supplier's contract.

Example: a property that earns €30,000 a year

The following amounts are a fictional example to learn how to create a budget, not sector averages or recommended amounts for all properties. Let’s assume a furnished house, without a pool, and with periodic inspections.

In this example, setting aside €150 monthly amounts to 6% of the €30,000 annual income. This 6% is solely the result of this hypothetical budget, not a market rule. If the property has a pool, a large garden, old equipment, or high occupancy, the calculation will need to be different.

How to calculate your figure without copying others' percentages

1. Make an inventory: note equipment, approximate purchase dates, condition, recent repairs, and replacement costs.
2. Review the last 12–24 months: separate ordinary maintenance from exceptional incidents and distinguish actual expenses from unexecuted budgets.
3. Request current costs: quotes from suppliers for inspections and recurring work, including taxes and travel when applicable.
4. Estimate replacements per year: replacement cost divided by the remaining expected years of use, adjusting it prudently.
5. Define a liquidity cushion: how much cash you would need to handle a major repair without relying on a future reserve.
6. Review quarterly: compare budget, commitments, and actual expenses; adjust contributions if occupancy or equipment condition changes.

The maintenance fund does not equate to an accounting expense

This distinction is crucial. Transferring €150 monthly to a separate account for future repairs does not automatically convert the €150 into a deductible expense for the month. It is a treasury decision: the money remains yours, but it is reserved for a planned use.

The accounting and tax record of each repair or replacement will depend on the actual nature of the operation, who holds the activity, and the applicable rules. A routine repair and the acquisition of a durable asset may have different treatments. Therefore, it is advisable to separate budget, cash flow, expense, and potential investment.

To delve deeper into this difference, consult profit versus cash flow in vacation rentals.

What changes if you manage ten or a hundred accommodations

A manager should not finance the maintenance of all properties with an undifferentiated balance. They need to identify who assumes each expense according to the contract, whether there is prior authorization from the owner, what work is urgent, and how settlements are documented.

A €900 breakdown may be irrelevant to the balance of a portfolio and yet completely alter the annual result of a property. Hence, the analysis should be done by accommodation and for the entire portfolio, without transferring costs from one property to another.

How to prioritize maintenance when money is limited

First, address risks to people's safety, legal obligations, and damages that may worsen. Next, tackle problems that prevent proper service delivery. Finally, consider aesthetic renovations that can be scheduled off-season.

Delaying a small repair does not always save money: sometimes it increases the breakdown cost or causes cancellations. However, it is also unreasonable to renew equipment just because there is a good month of income. Costs, urgency, impact on the guest, and available liquidity must be compared.

Checklist for the next monthly close

• Do we have the inventory of equipment and their review dates?
• Do we separate cleaning, repairs, replacements, and investments?
• What part of the annual budget has already been spent?
• How much money is truly set aside for unforeseen expenses?
• Are there any pieces of equipment with repeated issues that should be replaced?
• Is each repair assigned to the correct property and payment responsible?
• Does the expected expense modify the profit or just the cash flow for the period?

If you manage multiple properties, you can complement this control with our article on how to know which accommodations yield the most margin.

Frequently Asked Questions

What percentage of income should I save for maintenance?

It depends on the condition and characteristics of the property. First, calculate the specific costs and divide the annual goal by twelve; only then express the amount as a percentage for tracking.

Is maintenance the same as replacement?

No. Maintenance preserves the functioning of equipment; replacement involves substituting it. Some replacements may constitute investments depending on their characteristics and accounting or tax treatment.

Is a maintenance fund money lost?

No. It is reserved money, which can remain in the account or be transferred elsewhere. If not used, it remains available; its allocation does not alone demonstrate that an expense has occurred.

How to reflect maintenance when settling with an owner?

In detail by property, invoice, date, concept, authorization when applicable, and charge criteria according to the contract. Avoid generic discounts without documentary support.

Scope of the article

Financial planning guide prepared on October 16, 2026. The costs and percentages are hypothetical examples, not industry statistics. It does not replace the technical review of installations or individual tax or accounting advice.