Cash reserves

[Pmuppet]

Hello,

I have heard others say you should always monitor the cash reserves to ensure timeshares have enough to cover updates or unexpected events.

What is the rule of thumb for solid cash reserves when it comes to a timeshare budget/operations?

 

[FractionalTraveler]

I don't know if there is an exact number, but this is covered in standard accounting rules when the asset is categorized. For example, furniture is typically classified for replacement 7-10 years. Soft goods about every 5 years. Roof about every 17-20 years for replacement.

Typically cash reserves are maintained by budgeting for short and long term expenditures at the facility.