When budgeting for rental property repairs, expect to spend around 8.5%–10% of gross income annually on maintenance. Some years may have high costs due to major repairs like HVAC or roofing, while others may have minimal expenses. It’s wise to keep at least three months’ rent saved for major repairs in addition to budgeting for ongoing maintenance. When analyzing expenses, review a large sample size—if maintenance costs consistently exceed 10%, it may be time to reassess the property. Proper planning and reserves help maintain profitability and avoid unexpected financial strain.