Keeping your home well-maintained can pack a big financial punch if you are not prepared. Developing a budget for home maintenance and repairs can help prevent the overwhelm that comes along with unexpected maintenance costs. So, just how much money should you budget for home maintenance costs?
Budgeting by Percent
One popular budgeting trick is to set aside one percent of the purchase price of your home every year to save for regular maintenance. Of course, you won’t necessarily need the full amount each year, but some years, you may spend more. This isn’t a hard-and-fast rule, and it doesn’t work for everyone, but utilizing the one percent method is helpful to many homeowners.
Budgeting by Square Foot
Another easy-to-remember budgeting trick is to set aside a dollar per square foot of your home each year for upcoming maintenance costs. This method makes good sense to some because it takes into account the size of the home. Unfortunately, costs vary by location and by home, so some homeowners that follow this philosophy find themselves coming up short when a major repair pops up.
Planning for the Future
Just how much you budget for home maintenance and how you come up with the figure will ultimately be up to you. If you really want to come up with the most accurate figure possible, taking the time to assess the needs of your home and considering several factors can help you develop the most accurate plan. For example, the age of your home will greatly impact your budget needs. How old is your air conditioner, roof or water heater? The older they are, the more likely it will be that you’ll encounter the need for repair or replacement, and this should be factored into your savings goals.
Another factor to consider is the location of your home. If your neighborhood is prone to flooding, has many trees and loose branches or has been exposed to a pest infestation, you’ll need to keep this in mind when creating your budget. If you are a part of a homeowners association, certain maintenance costs may be covered, or additional home maintenance may be required.
There are many good online resources that homeowners can use to determine average life and recommended maintenance schedules for specific systems/components. For example, for a specific system component like furnace or water heater, you can check what the average lifespan is and what recommended maintenance should be. When it comes to budgeting, taking the size, age and location of your home into account and using these figures to decide on your savings goal is a good strategy.
Keeping on top of a regular maintenance schedule can also help you to save cash and identify potential problems. For professional support with your home maintenance needs, contact Hassle Free Home Maintenance Services. Our team will partner with you to ensure that your home is safe and in great shape.