How much should I be budgeting for repairs of my rental property?

I have had an owner who wasn’t budgeting for repairs ask me how much they should budget per year. As a general rule of thumb, expect to pay somewhere between 8-10% of your rental income for the year on repairs (repairs, maintenance, turnovers). Another way to look at this is, you should expect to pay about the equivalent of one month’s rent. Things to keep in mind are the age of the property and the condition of the property. If this is a new home the rate will obviously be lower. If this is an older home with an old AC system and/or roof, as examples, you would expect the rate to be higher. In general though, and over time, this is a good baseline for someone with a portfolio of rental properties.