What happens if there isn't enough rental income to cover expenses?

In managing the properties, we budget the costs of upcoming maintenance and renovation. Ofcourse, the unexpected can happen. Therefore each property also has cash reserves to cover the costs of emergencies such as maintenance cost overruns, extended vacancies, and tenant insolvency. When a property gets sold, together with all the proceeds, the cash reserves get distributed to all investors.

In the unlikely event that emergency costs exceed available cash reserves, BRXS will obtain a short-term loan from one of our group entities to cover the costs. This loan would then be gradually repaid using future rental income, which may reduce your return on investment. To confirm: in such an instance, we will never ask investors for additional capital.

Updated on:
July 31, 2023
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