The rule of thumb is to reserve $250-$300 per unit per year in reserves. This is additional to the upfront operating account funds. The sum per unit per year should cover shortfalls and unexpected capital expenditure projects. If your sponsor doesn’t have a reserves budget and funds are needed, they may ask their passive investors for additional capital. We prefer to play it cautious from the outset, so we don’t ask our investors for more money than they had planned.