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How much do you spend on a house maintenance each year?
I see many rentals that have been left with no maintenance
But for those that do regular things like painting and roofing and things like that
how much do you think a house costs to maintain per year
say a 3 bed weatherboard?
9pc of rental i spend on r and m
Originally Posted by SleepySlug
Originally Posted by Beano
A while ago I heard that it costs an average of around 5% of a property's value each year to maintenain and keep it from decaying. That was before the ballooning prices of the last couple years, but with the increasing costs involved probably still not far wrong.
5-10%, of rental for older properties, depending on rents and if you did a big renovation you're off the hook for a while usually - although things tend to break down. You don't need to have a "maintenance" fund per se, just make sure that when the time comes you have enough cash or equity to do what you need. A revolving credit facility will see you right.
Last edited by Nick G; 06-01-2017 at 09:27 AM.
If you're not DIY'ing it the above numbers can be a bit light if you take a long term view. We have had rentals since 2003 and in the early days I would put $1000 a year for maintenance.
14 years on we know we average closer to 4K a year than $1000. This is to allow for things like roofs, leaks, required upgrades etc. Smaller units cost us around $2500 a year over time.
Well, it costs about 15% of total rental income.
The main thing is to have a bucket of money (a revolving credit or similar) available on-call for when something major strikes. A leaky roof or similar.
The last thing you want is a house that is costing you money every day to own and that is unrentable.
Last time I looked I spent $41,000 on R&M on 12 houses in one year. Admittedly that included 10K on one renovation, but in the longer term you have to allow for that anyway.
5-10% might be ok for an average year but it'll catch you out regularly.
Originally Posted by Nick G
30-50 years - roof, windows, doors, decking, railings, plumbing fixtures and electrics, carpets.
5-15 years - Internal and exterior repaint, oven, hot water cylinders, heaters, replacement locks.
All that's on top of the year by year ware and tear. Of course these can be called renovations but if you haven't factored them in long term they'll bite you in the butt when they decide to fail when you're not ready.
Yeah you're probably right. My rentals are high income ($1.4K pw and $1.9K pw on the current two that I've kept) so 5% of rent for me is plenty.
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