Maintenance Fees Question

Hi,

You ask a difficult question because not all homes are alike.

For example, a 10 y/o weatherboard house will need more exterior maintenance than a 10 y/o brick house.

Perhaps look at it this way…

Big Items

A new Hot Water Service $700
Painting exterior $2,500

Small Items

Misc. plumbing $200
Misc. electrical $200
Misc. general $200

In respect to general maintenance, we allow a % of the rent… usually 5% of the annual gross income.

Thus a property that rents for $150 per week… we allow for $390 per annum in general maintenance (small items).

Most oftem the big items are a once off and as such we generally don’t budget for them. Instead we allow for a general provision for maintenance across all our properties and pay for major repairs from this fund.

It’s like a self-insurance policy for major repairs where we spread the cost across all our properties.

Bye

Steve McKnight

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Remember that success comes from doing things differently.
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Little things can and will go wrong, eg hot water systems, locks.
when we have brought, we have usually done a thorough check, repair, major clean up and gardening, pruning, rubbish removal, mulching,curtains etc. We paint every thing.
Depending on the house, it has cost us anything from $3000 to $25,000(a renov.job).
The house then is very presentable and usually rents fairly quickly.
We know everything is done and should be fine for a long time. Minor repairs can come up, this can happen with any property.
Regina