Property Management
What is a capital expenditure (CapEx) reserve in property management?
AMoney set aside for daily operating expenses
BFunds reserved for major long-term improvements and replacements like roofs and HVAC systems✓ Correct
CA security deposit account
DAn emergency fund for unexpected repairs
Explanation
A CapEx reserve is money set aside from rental income for future major capital improvements and replacements (roof, HVAC, parking lot, etc.). Adequate reserves prevent the need for special assessments and protect property value.
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