Operating reserve
An operating reserve is a cushion of cash held back on a property to cover routine costs and short-term shortfalls, such as a slow rent month or an unexpected repair, without disrupting normal operations.
How reserves are funded
Reserves are typically funded from collected rent before distributions, up to a target balance set per property. Once the target is met, surplus flows through to owners. AXYS tracks maintenance, vacancy, and capex reserves per property and funds them automatically as rent distributes.
How is an operating reserve different from a capital reserve?
An operating reserve covers short-term operating needs. A capital reserve (or capex reserve) is set aside for larger, longer-term replacements like a roof or HVAC system.
Run the numbers in one system
AXYS unifies rent collection, banking, automated owner distributions, reserves, and accounting. Book a 30-minute walkthrough.