Who pays for routine service?
Routine maintenance is paid from the LLC's annual reserve, funded by the all-in annual management fee. No surprise bills.
Routine maintenance is fully covered by the annual all-in management fee (charged to the LLC, not directly to members). The fee is set high enough to cover:
- Manufacturer-scheduled service.
- Tire replacement at recommended intervals.
- Brakes, fluids, filters, batteries.
- Detailing, condition reports, photography.
- Storage and insurance premiums.
- A reserve buffer for unscheduled minor repairs.
What's not covered
- Damage from at-fault collisions (covered by insurance, deductible from the at-fault member).
- Damage from member misuse (e.g., curbed wheels, cabin damage, off-road use).
- Modifications requested by members (charged separately, requires co-owner approval).
- Mileage overages (billed at $4/mile per the Operating Agreement).
The fee rate is reviewed annually and may adjust if maintenance costs trend differently than projected. Any adjustment is a documented LLC decision with member notice.
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