How Should I Create a Realistic Maintenance Reserve?

Start with the building’s age, construction quality, exposure, equipment and maintenance history. Set separate reserves for annual servicing, predictable replacement—such as pumps, air conditioners and exterior coatings—and major risks such as roofs, retaining walls or waterproofing. A new property still needs a reserve because warranties may be limited or disputed. Review the amount each year using actual invoices.

Prepare three figures: cash required to complete, normal annual running cost and a repair reserve. Separate seller estimates from invoices and professional calculations. Costs and tax treatment can change, so current figures should be confirmed before signing.

This is general guide information only; obtain current independent Thai legal, tax, financial or technical advice for the specific transaction.