On our blog today, we are talking about your rental property budget for maintenance in Santa Rosa, CA. Landlords need to know how to budget, and a property’s age has a lot to do with how much you should save for future maintenance needs.
Newer properties will usually have much lower maintenance costs than older properties. So, if your property was built in 1985, what you anticipate spending on upkeep and repairs will be lower than what you would spend on a property that was built in 1945.
How Much to Save
We always recommend that landlords save money for maintenance on a yearly basis. When you put away a specific percentage of your rental income every month, you’ll develop a healthy reserve that will allow you to cover larger expenses when they come up. For a newer property, it’s a good idea to save between 10 and 15 percent of your rental income for maintenance. For an older house, we recommend saving 20 percent.
Timing is also important when planning your rental property budget for maintenance in Santa Rosa, CA. There may be two or three years that you don’t have any maintenance costs at all. However, when that roof needs to be replaced or siding needs to be torn down, you’ll be glad you have the repairs in the budget and the money saved.
There are a few complex maintenance situations with older homes that require extra planning and budgeting. Houses built before 1981 have asbestos regulations and remediation that you’ll need to follow. If your property was built before 1978, there are lead paint concerns that you need to follow when making repairs. These are complicated projects and they will add to your planning and expenses.
Please contact us at DeDe’s Rentals if you’d like to talk in more detail about this complicated issue.