Property Management

Capital expenditure reserves in a property management budget are funded to pay for:

AMonthly operating expenses like utilities
BLong-term asset replacement (roofs, HVAC, parking lots) that exceeds normal maintenance costs✓ Correct
CAnnual property tax payments
DManagement company profit

Explanation

Capital expenditure (CapEx) reserves are accumulated over time to fund major future replacements and improvements that are capital in nature, not routine operating expenses.

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