HOME MAINTENANCE 2023
SO – WHAT IS HOME MAINTENANCE? My definition of home maintenance
is any jobs that involve checking, DIY, and basically maintaining (!) where you
live. It’s about maintaining the structure, fixtures and fittings – and
ensuring your home stays safe, secure and looked after for you in day to day
life, and in emergencies.
Some specialists recommend setting aside 1% to 2% of the
purchase price of your home each year for routine maintenance projects such as
roofing repairs, sewer updates, or new appliances — each of which can cost
several thousand dollars. If 2% seems too much, consider starting with less and
working your way up.
How Much Money You Should Save for Home Maintenance (exceptional job Roxanne Downer
Written By
Reviewed By
Roxanne Downer Published On December 7, 2022
Budgeting for all the
ins and outs of homeownership can be overwhelming. No matter how diligently you
keep up with routine maintenance, major repair needs are bound to occur. This
is why having a home maintenance saving plan is crucial. It can cover the
hundreds or even thousands of dollars of upkeep your home might need.
We’ve compiled this
guide on average repair costs, product life spans, and more to help you decide
how much money to save for home maintenance. We’ll also cover some personal
finance tips and budgeting rules of thumb to help you tackle homeownership like
a pro.
How Much to Budget for Home Maintenance
Home maintenance has
two sides: the tasks you can plan for every year and those you can’t. The
predictable ones, such as routine maintenance tasks, cost more upfront but can
save you a lot in the long run. For example, projects like yearly gutter
cleaning, HVAC tune-ups, and winterizing your sprinkler
system keep your home in good shape and help prevent costly
damage down the road.
Other maintenance
needs come in the form of repairs and replacements, which can be costly,
unexpected events. The unpredictable nature of these maintenance expenses means
you should save money each year to cover them.
Calculate a Home Maintenance Savings Plan
So, how much money
should you save in case several of your appliances or a home system happens to
go down?
The Percentage Rule
One popular rule is to
set aside at least 1-2% of your home’s purchase price each
year for maintenance needs that arise. Based on this principle, a homeowner
with a $300,000 property should save $3,000-$6,000 per year.
Some financial experts
even suggest saving up to 4% of your
home’s value for upkeep. Maintenance typically ends up costing around 1% of a
home’s value each year, so saving that amount and then some can help you
prepare for larger, unexpected costs that might pop up.
The Square Footage Rule
The percentage rule
works in some situations but might not translate well in others where a
turbulent real estate market inflates home values. The market might cause a
home’s value to fluctuate well above or below what it’s actually worth.
Homeowners in these scenarios may instead opt for the square footage rule for
maintenance budgeting. This rule suggests saving one dollar for every square
foot of your home. So, if you have a 2,000-square-foot house, you’ll put away
$2,000 for yearly repairs and upkeep.
Today’s Homeowner’s Take on Savings Plans
The percentage and
square footage rules are good places to start when tackling home maintenance
savings. However, saving even 2% of your home’s value for upkeep might not be
feasible for your budget.
In this case, we
suggest saving at least 1% of your home’s value each year as a starting point.
If you’re able to put aside extra money over time, you’ll be better equipped to
handle emergencies that arise. At the end of the day, the amount you really
need to save depends on your home’s condition, age, and a few other factors,
which we’ll cover in the sections below.
Factors That Affect How Much You Should Save
Saving for home
maintenance isn’t one-size-fits-all. Your specific budget depends on factors
like location, home age, and system life spans. We’ll discuss these factors and
more in the sections below.
Home Location
If you live in a
high-cost area, you already know your budget should be higher to include
everything from food and gas to housing and recreation. Home maintenance should
be no exception when it comes to your savings plan. Materials and labor fees
are steeper in areas with a high cost of living, so save accordingly.
Your area’s climate
can also indicate how much you should save for home maintenance. If you live in
a place with unpredictable weather — hurricanes, blizzards, flooding,
wildfires, or droughts — your home is at a higher risk of damage. Assess the
threats your property may encounter that home insurance won’t cover and put
aside some extra money.
Home Age
The age of your home
is another factor to consider when budgeting for maintenance. Older homes
typically cost less upfront but may have a myriad
of issues hiding in the woodwork. When maintaining an older
home, you might encounter problems like failing appliances, deteriorating
floorboards, corroding pipes, peeling paint, hazardous electrical wiring, and
much more. If you own an older home, consider these potential maintenance needs
and how much they could cost you down the road.
You may be tempted to
skip saving if you’ve recently purchased a new home. However, first-time
homebuyers should prepare for the upcoming costs their home may develop. It’s
true that newer homes typically have fewer problems in the first several years.
However, like any property, they aren’t immune to weather damage, owner
accidents, and other surprise maintenance needs.
In short, you should
still budget for maintenance even if your home is new(er). And if you don’t use
the savings from your first couple of years in the house, you’ll have a
sufficient financial cushion moving forward.
Life Spans of Home Systems and Appliances
Knowing the life spans
of the items in your home is an important step in preparing for annual
maintenance costs. Having an idea of when appliances and systems might start to
sputter can help you plan (and save) ahead so there are no surprises.
The International Association of
Certified Home Inspectors provides the following life
expectancy estimates for standard household components:
|
Item |
Average Life Span |
|
5–10 |
|
|
Interior Paint |
10–15 |
|
7–10 |
|
|
Roofing Adhesives |
15+ |
|
5–7 |
|
|
Trash Compactor |
6 |
|
9 |
|
|
Clothes Dryer |
13 |
|
Washing Machine |
5–15 |
|
Microwave Oven |
9 |
|
Refrigerator |
9–13 |
|
Gas Oven |
10–18 |
|
Cabinets |
50+ |
|
60 |
|
|
Roof Trusses |
100+ |
|
Carpet |
8–10 |
|
100+ |
|
|
Garage Doors |
20–25 |
|
6–12 |
|
|
Toilet Tank Components |
5 |
|
Toilet |
100+ |
Average Home Maintenance Costs
When you think of
home-related costs, you probably think of a hefty down payment or pricey
monthly mortgage. While these financial obligations undoubtedly take a chunk of
your income, other, more sporadic costs can also put a dent in your savings,
especially if you aren’t prepared.
The things that make
your house a home — systems, appliances, and accessories — are bound to break
down eventually and need repairs or replacements. These costs are part of home
maintenance, so you should budget accordingly.
Here are some
average repair and replacement costs you
could incur if your home appliances and systems stop working:
|
Item |
Average Replacement Cost |
|
|
Refrigerator |
$300 |
$1,500 |
|
Washer & Dryer |
$300 |
$1,500 |
|
Built-in Microwave |
$200 |
$300 |
|
$300 |
$650 |
|
|
Oven |
$300 |
$1,000 |
|
Water Heater |
$500 |
$1,700 |
|
Toilet |
$250 |
$400 |
|
Electrical panel |
$1,000 |
$3,000 |
|
$500 |
$10,000 |
Don’t forget about the
outside of your home when budgeting for yearly home maintenance. Things like
gutters, landscaping, and the roof can be expensive should problems arise.
Your gutters are
crucial for redirecting water away from your home and avoiding destructive
foundation issues down the road. Routine gutter repairs generally
cost between $250-$400, with higher-end repairs sitting in the $500-$600
range. Full-scale gutter replacements can
cost between $1,000-$7,000, depending on the gutter material and size of your
home.
Your roof is another
component of your house to factor into your long-term budget. Smaller roof repairs like
leaks, holes, or missing shingles could cost anywhere from $100-$1,500. Other
significant repairs for damage to the roof’s trusses, eaves, or underlayment
can cost up to $4,000. If you need a full repair or a new roof, you’re likely
looking at $10,000 or more to cover the cost.
How To Plan for Costs
Preparation is vital
when budgeting for home maintenance to give you peace of mind throughout the
year. The following sections discuss ways to prepare yourself for routine
maintenance needs, unexpected catastrophes, and everything in between.
Start a Home Maintenance Emergency Fund
Starting a home
maintenance fund is the best way to prepare for annual costs. This can help you
afford predictable maintenance needs and soften the financial blow of
unexpected home repairs when they occur.
Instead of setting
aside thousands of dollars at once, factor your home maintenance savings into
your monthly budget. Depending on your financial capabilities, you might be
able to put a few hundred dollars into your maintenance savings account each
month for a more manageable preparation plan.
At the end of the
year, you can put any savings you didn’t use toward next year’s maintenance
emergency fund. Remember, your main goal in budgeting for home upkeep is to
build a safety net for your future needs.
Keep Up With Regular Maintenance
Staying on top of your
home’s routine maintenance is another way to manage costs. You’ll need help from a pro for
your annual home system inspections and HVAC tune-ups. Consider hiring a
contractor to come out and complete multiple tune-ups and other maintenance
tasks all at once.
You can complete other
maintenance tasks like gutter cleaning and vacuuming refrigerator coils on your
own. Develop a monthly maintenance checklist to keep track of tasks you need to
complete. Our seasonal maintenance checklist is
a good place to start; it details out which tasks to complete each month to
keep your home in good condition.
Buy a Home Warranty Policy
Purchasing a home
warranty is another way to prepare for unexpected home maintenance needs. A
home warranty isn’t the same as homeowners insurance, which covers property
loss, structural damage, and liabilities. Lenders typically require homebuyers
to have insurance in place before they can acquire a home.
Home warranties help
cover the costs of repairs or replacements for systems and appliances that
break down from normal wear and tear. These service contracts are optional and
available through various home warranty companies.
With a home warranty,
plan to pay a monthly premium and a small service fee each time a technician
completes a repair. Otherwise, the provider covers the cost of the repairs or
replacements. Home warranties are excellent for homeowners seeking a budgeting
tool for unexpected maintenance.
Similarly to a
personal home maintenance fund, a good home warranty policy can help you factor
repair costs into your monthly budget. They generally cost between $600-$700
per year and can cover thousands of dollars in repairs. Learn more about how
much a policy can help you save in our Home Warranty Plans &
Pricing guide.
Planning for Peace of Mind
Now that you have a
clear understanding of how much to save for home maintenance, you can get
started building a financial safety net for your family. Your home is likely
your biggest asset, so keeping it in working order is crucial to your happiness
and comfort. With a home maintenance savings plan or solid home warranty
policy, you’ll be well on your way to peace of mind for the coming years.
