We've talked about our own emergency funds, but haven't really discussed the specifics of being a landlord and having an emergency fund. As you probably know from a previous post, I keep a completely separate account for my rental property, and it has it's own emergency fund.
How much do you really need to have in it? I have to be honest, that isn't as simple as a straightforward number. The first thing you need to consider is: What possible scenarios could come up, and how much would they cost me? Let me give you a few that we've encountered:
- Break-In (While it was empty): setback $6000
- Vacancy (Between renters): setback of 1+ month's mortgage plus cleaning and maintenance fees.
- Plumber: setback $100+
- Electrician: setback $700+
- Roof Repair (small repair): $300+
- Roof Replacement: $5000+
The Landlord Files: Location is key
The Landlord Files: A Financial Life of it's Own