Maintenance CapEx primarily refers to expenditures that:

Maintenance CapEx, short for Maintenance Capital Expenditures, refers to the funds spent to maintain the existing functionality and operational quality of a property. This includes routine repairs and gradual improvements aimed at preserving the property's condition and preventing deterioration over time.

The fundamental purpose of Maintenance CapEx is to ensure that a property remains operational and safe for tenants or occupants. This may include activities such as replacing aging HVAC systems, roof repairs, or upgrading plumbing and electrical systems, which are essential for the daily operation of the property.

Investments categorized as Maintenance CapEx do not typically include spending that is intended to enhance the property’s revenue potential, such as major renovations that could significantly increase rental income. Additionally, while decorative improvements may enhance aesthetics, they do not fit the primary role of maintaining the property's operational integrity. Lastly, while some expenditures occur during tenant turnover, Maintenance CapEx is not limited to these instances and encompasses a broader range of ongoing maintenance activities necessary for property upkeep.