Cash Reserves Runway (Rental)
It is how many months your landlord reserve fund lasts if rent stopped but mortgage and upkeep still had to be paid.
Formal definition
Cash reserves runway equals cash reserve balance divided by monthly mortgage plus average maintenance — expressed in months of coverage.
Why it matters
Vacancies and big repairs hit at once; reserves prevent forced sales or missed loan payments.
Where you see it
- Property management reserve policies
- BiggerPockets reserve calculators
- Lender reserve requirements
- Portfolio stress tests
- Landlord association best practices
Worked example
- Cash reserve:
- Monthly mortgage + maintenance: $3,000.
- Runway =
- Interpretation: Reserves cover about five months of mortgage and maintenance.
How Business metrics calculates it
Cash reserve ÷ Average monthly maintenance (when maintenance is the drain you entered).
The range we use for status labels
On Business metrics, the status band for this KPI is roughly 3 to 99. Higher values are generally healthier in this band. Your niche can sit outside it honestly — the label is a prompt to read the coaching, not a certificate.
Where people fool themselves
Reserves runway using average maintenance that excludes the year you need a roof is a fair-weather number. Stress a capex year separately.
Run it on your own numbers: the Residential Rental calculator.