The Landlord Buffer: Your Emergency Fund

In property investing, things go wrong. A hot water system bursts, a tenant leaves unexpectedly, or interest rates rise. A "buffer" is a dedicated pool of cash set aside to ensure you never have to sell a property in a panic.

Key Concepts

• Maintenance Fund: Cash for urgent repairs.
• Vacancy Buffer: Enough to cover the mortgage for 4–8 weeks if the property is empty.
• Interest Rate Buffer: A safety margin for when the bank increases your rates.

How it works in PropKeeper

By viewing your "Portfolio Overview," you can see your total monthly outgoings. A good rule of thumb is to keep 3–6 months of total expenses in an offset account linked to your property.

Why a Buffer is Essential

Without a buffer, a $2,000 plumbing emergency can become a financial crisis. Having the cash ready allows you to maintain the property properly, which keeps your tenants happy and protects your asset’s value.

Pro Tip

Don't let your buffer sit in a standard savings account. Keep it in your Offset Account. It stays liquid and accessible, but it also reduces your daily mortgage interest while it's sitting there.