How to budget for home maintenance

Maintaining a home involves a variety of expenses. These costs can add up over time, making it essential to budget effectively.

This article outlines what to consider and tips on how to manage the costs associated with home repairs and maintenance.

Potential home repairs

Homeowners may need to fix a variety of things over time. Typical home maintenance costs can include:

• Leaky roofs
• Faulty plumbing
• HVAC systems
• Electrical issues
• Structural damage

Regular wear and tear, weather conditions, and the age of a home can contribute to necessary repairs. Understanding potential issues can help in planning and budgeting for home maintenance costs effectively.

Create an emergency home repair fund

Having a dedicated savings account specifically for home maintenance can provide significant benefits. This type of emergency savings fund helps homeowners build the financial resources to address urgent repairs without disrupting their overall budget.

By setting aside money regularly, funds can accumulate to cover problems like a burst pipe, broken furnace, or damaged roof. This proactive approach can help homeowners manage home maintenance expenses and reduce stress if unexpected issues arise.

Factor routine maintenance costs into a budget

Budgeting for home maintenance doesn't mean waiting for disaster to strike. Be proactive in setting aside budget for minor projects to avoid more significant issues that could arise down the track due to neglect.

A basic budget for average home maintenance costs could include:

• Gutter cleaning: This service prevents water damage and extends the life of the roof.
• Landscaping: Landscaping can be performed to maintain curb appeal and prevent issues like root damage to the foundation.
• HVAC servicing: Heating, ventilation, and air conditioning units should be regularly serviced to ensure efficient operation and reduce the potential risk of system failures.
• Painting and sealing: Protect exterior surfaces and prevent weather-related damage by painting and sealing a home when needed.

Consider the age and condition of the home

Older homes or those with existing problems may need more frequent and significant maintenance. It’s advisable to consult a professional inspector for a comprehensive assessment of the home's condition. This assessment can identify potential issues and provide an estimate of the necessary repairs, helping homeowners determine how much to set aside.

For example, older homes may need:

• Roof repairs or replacement: Older roofs are more prone to leaks and damage.
• Plumbing updates: Outdated plumbing systems can lead to leaks and water damage.
• Electrical system upgrades: Updating the electric ensures safety and compliance with current standards.
• Foundation repairs: Tending to the foundation addresses issues like cracks or settling that can affect the home's structural integrity.

These repairs can become very expensive, especially without advance planning. For older homes, regular inspections are a key part of maintenance. A home maintenance budget should take this into consideration and be adjusted accordingly.

Research average repair costs

To get a realistic idea of how much to set aside, research the average repair costs in the home's area. Consultations with local companies can provide more precise figures tailored to the home.

Online resources can also provide accurate cost estimates. Websites like HomeAdvisor or Angi, as well as local government resources, can provide valuable information on average repair costs.

Additionally, getting quotes from multiple local contractors can offer a clearer picture of potential expenses and help in creating a well-informed budget.

Break down annual costs into monthly contributions

One rule of thumb is for homeowners to set aside 1% to 4% of the home's value for maintenance.¹ Dividing annual home maintenance costs into smaller, monthly contributions to a dedicated savings account may make budgeting easier.

For example, if the estimated annual home maintenance cost is $2,400, setting aside $200 each month can help meet this financial goal.