There are several factors that go into budgeting for the maintenance and improvements of a rental property.
Generally speaking, figure to spend about 1% per year of the total value of your home. If you have a $300,000 house, generally speaking you’re going to invest about $3,000 a year or need at least set aside $3,000 a year for maintenance and upkeep of that home.
Big Ticket Items
This includes things like your roof, HVAC, and the water heater. These are items that do not replacement often, but putting aside the 1% will make sure the cash is there if it came time to replace or repair
General Maintenance
Again, generally speaking, figure about half of one month’s rent a year for the little things that come up. It could be a broken garbage disposer, a plumbing repair or a broken window.
And always use a professional repairman. When dealing with making repairs to a property that someone else is living in, it is better not to be liable if something goes wrong with the repair.
To recap, 1% of the total value of your home a year is a good amount to set aside for those big ticket improvements, and half of one month’s rent every year to have on hand for the other things that come up.
If you have any questions about Savannah Property Management, reach out to us here at Coastline Property Management.