HOW MUCH TO SPEND ON PROPERTY MAINTENANCE TO SAVE EFFECTIVELY

Investing in the maintenance of your property is similar to supporting the health of a living organism. Whether it’s residential real estate, commercial property, or personal assets, timely and regular maintenance can prevent serious issues and help avoid unexpected expenses in the future.

 

Property ownership comes with expenses, but is it always necessary? Let’s explore how to optimize them and effectively save money.

 

Maintenance encompasses the planned, seasonal and technical work, as well as emergency situations. Let’s break it down into three crucial cost categories:

 

  • Ongoing Repairs and Maintenance: These include minor repairs and routine upkeep tasks that ensure the crucial elements of your property stay in tip-top shape throughout the year.
  • Post-Departure Repairs and Maintenance: Your previous tenant has moved out, and now it’s time to refresh the premises to attract potential new tenants. This category involves scratch removal, a fresh coat of paint, deep cleaning, and other similar tasks that prepare your property for the next occupant.
  • Emergency repairs and replacement: Emergency repairs, like a burst pipe or a faulty electrical system, are necessary if the safety of the occupants or property is at risk.

 

Estimating the exact amount you’ll spend on these various categories is no easy task, considering some expenditures are irregular and unpredictable. However, there are practical approaches to help you budget for maintenance and repairs effectively.

 

How much money should you invest?

 

The required investment in repairs and maintenance can vary significantly depending on the condition and size of the property, climate conditions, quality of previously used materials, and the intensity of property use. Several basic rules are proposed to estimate an approximate budget for repairs and technical maintenance:

  1. The $1 per 1 square foot rule suggests allocating an annual fund equal to the total area of your property in dollars. For example, if the area of your house is 2,000 square feet, you should invest $2,000 annually in ongoing repairs and maintenance.
  2. The 1% rule recommends setting aside 1% of the total property value annually.
  3. The 1.5 rent rule – allocate an amount equivalent to one and a half months’ rent annually. For example, if the monthly rent is $2,000, allocate $3,000 for repairs and maintenance.

 

How to minimize expenses without neglecting your investment?

 

The best way to save on maintenance is prevention. Key property elements require regular inspection and timely maintenance. It is important to create a list of key components and develop a schedule for their inspection and technical maintenance according to needs and time of year.

 

Ignoring minor breakdowns or material wear is not advisable – small inconveniences can lead to serious and expensive repairs in the future. Savings in this area usually equal choosing durable, quality materials and hiring qualified professionals who can perform the necessary work competently.

 

However, no one is immune to unpredictable and uncontrollable circumstances. Therefore, smart budget planning includes reserve funds for emergency repairs.

 

Effective property management and upkeep involve a smart balance between regular expenses to maintain the property’s condition and the necessity to avoid excessive, unforeseen expenses in the future. In summary, every owner should determine an optimal strategy that allows not only to preserve but also to increase the value of their property over an extended period.

 

As for how property modernization may deplete your funds, dive into the next article for insights.

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