Maintenance budget
Do you know how much you should save for your annual maintenance budget? If you don’t have a clue, you’re not alone in this one.
Luckily, it’s not a mystery. It’s a math problem!
What percent should you plan on?
If you’ve owned your home for several years, you might already have a good idea of how much annual maintenance costs you. If you’re a new owner or you’ve deferred maintenance for a while, you might be wondering what percentage you should set aside so that you’re not left with unbudgeted surprises.
Typically, maintenance costs run between 1% and 4% of home value annually. So if you have a $200,000 home, you should plan between $2,000 and $8,000 in annual expenses. We know! That’s a huge range. So here’s how you can narrow that down.
Lower end of the budget
Is your home newly built — say, within 5 years? — then you can likely plan on being at the lower end of what you need to budget since most of your expensive items are within their useful life. Your main focus as a homeowner, beyond just enjoying your house, is to maintain the systems you have in place so that you can get as many years out of them as possible while building up a savings reserve.
You can also likely plan on being on the lower end of the budget if you are an expert at DIYing. You may only need to pay for the supplies to do a project and bring in professionals for things that require a license or are out of your comfort level.
High side of the budget
Do you have a historic home, live in an expensive area with a shortage of contractors, have no desire to DIY, or have a home overrun with deferred maintenance problems? Then you should plan to be on the higher side of the budget to make sure that you can cover everything.
Want to find ways to save money?
If all of this budget talk has taken the fun out of your weekend plans, not to worry! There are ways for you to lower your maintenance costs.
Look for things that you can DIY
While some projects always require a professional — like anything involving a garage door spring — there are many things that you can do around your home to help save you money even if you’re not particularly handy:
Filters are your friends. Stay on top of cleaning and replacing filters in your home. This helps your machines run more efficiently, which helps them last longer.
Use your vacuum. Your vacuum can help you do more than just keep your floors fresh. Use it to clean the coils on the back of your refrigerator to help it work more efficiently and suck out the lint from your dryer trap.
Say yes to stains. If you have a wooden deck or fence, regular maintenance and staining can significantly extend the life of the wood while also making it look more attractive.
Think holistically
Are there projects that you can take on that will cut down on your annual maintenance budget? If you live in a drought-prone area, could you add hardscaping and native plants to eliminate the need for costly and time-intensive lawn maintenance and a sprinkler system?
Are your summer power bills sky-high because a large portion of your home is hit by harsh afternoon sunlight? What you might not realize is those bright rays are also cutting short the life of your siding, paint job, and roof, all of which are high ticket items. A properly selected and sighted tree can help block the damage and will save you money. If new greenery isn’t an option due to your yard layout, installing solar panels can also extend the life of your roof and cut down or eliminate your power bill.
An ounce of prevention is worth a pound of cure
One of our most common calls is when a homeowner needs a plumber. While it’s nearly impossible to predict that your toddler is going to flush an apple core down your commode, there are a few things that you can do to prevent issues that hit your maintenance budget.
Ways to prevent plumbing problems:
If you have a household full of people with long hair, install a hair catcher and clean it out regularly.
Be picky about what you put down your disposal. Eggshells, coffee grounds, grease, and flour, among other things, can all wreak havoc on your disposal and necessitate a call to a professional.
Flushable wipes are often not as advertised and cause costly plumbing issues.