Let’s take a look at the different types of maintenance expenses, how they might change based on various factors, and how to budget for these costs.
Definition and Examples of Maintenance Expenses
Maintenance expenses are a regular part of owning a home. These are the costs you’ll pay to care for your home and maintain your property. Your maintenance expenses will vary based on several factors, including:
Your home’s locationThe age of your home and any additional structures, like a garage or fenceWhether or not you occupy the propertyWhether you rent the property to a tenantHow well the home was taken care of before you bought it
Common home maintenance expenses include:
Pest controlLawn carePool cleaningAppliance and HVAC system service and maintenancePlumbing issuesGutter cleaningCosmetic upkeep, such as painting or replacing cracked floor tilesReplacement lightbulbs and furnace filters
If you own a building with multiple units, you might also need to cover additional maintenance expenses, such as landscaping and elevator maintenance. If your building has common areas such as a laundry room, hallway, or parking garage, you may need to pay for their housekeeping and maintenance.
Alternate names: Maintenance costs
How Do Maintenance Expenses Work?
A variety of factors affect which maintenance expenses you’ll face as a homeowner. For example, a homeowner in humid Florida will need to be on the lookout for mold and mildew to catch problems before they cause major damage. Conversely, homeowners in Minnesota may need to budget for snow removal from their properties or for chimney cleaning before using their wood fireplaces each winter. Routine maintenance will help keep your home and its systems in good working order, and may help prevent bigger-ticket or emergency repair expenses. As your home ages, you’ll likely need to repair or replace major items such as your air-conditioning system, refrigerator, hot water heater, or furnace.
What Maintenance Expenses Mean for You
Your home won’t take care of itself, and its many components won’t last forever. The wear and tear of daily life will add up over the years. However, budgeting for maintenance expenses will help you be prepared for both routine care and eventual replacement costs. A good rule of thumb for home maintenance is to put at least 1% of your home’s value each year into a savings account—and up to 3% if your home is older or located in a wet or humid area. For example, if your property is worth $400,000, you’d budget at least $4,000 each year for ongoing maintenance costs. That works out to $333 per month, which might seem like a lot—and that’s why it’s essential to include maintenance expenses in your budget. You can also opt to budget based on the size of your property. The square-footage rule suggests saving $1 per square foot of your home toward annual maintenance. This means that if you have a 1,200-square-foot house, you’ll want to save $1,200 each year, or $100 per month. Some homeowners may consider buying a home warranty, which might cover servicing and repairs for your appliances, HVAC system, and roof. Before choosing a plan, read the fine print and investigate potential maintenance costs in your area to see whether the costs will work out in your favor.
