The other day I was reminded of the importance of factoring in a buffer for maintenance costs when a clogged toilet in one of my properties caused minor water tank damage to the tune of almost $3,000.

Property required maintenance and this is amplified when they are occupied by renters. Not saving funds for a rainy day can create cash flow pinches and lead to cutting costs and putting off much needed maintenance. For example, water tank damage that is not taken care of immediately gets more expensive as time goes by and mold begins to grow.