In today’s blog, we are sharing some insight on the costs associated with maintaining your rental property and how you can plan for them.
If you’ve thought about becoming a landlord, and aren’t yet sure how to budget for maintenance and repair expenses, or if you’re just trying to manage your current property more effectively, we may be able to help you.
Maintaining a rental property includes a number of factors. A lot of your maintenance costs will depend on the condition of your property. A house that has been maintained in good repair over the years will require a different maintenance budget than one that has accumulated a lot of deferred maintenance. Recently built or remodeled properties usually have lower maintenance and repair costs than older properties that have not been remodeled.
As a landlord, you will experience periods when you have very little maintenance and repair expenses. Then, there will be times when you seem to be repairing something every month. It’s important to anticipate those expenses and budget for them, so you aren’t completely unprepared when something happens.
At Residential Property Management, we recommend setting aside 10 to 15 percent of your total rent towards the maintenance and repair of your rental property. Whether you’re currently experiencing repairs or not, it is a good habit save that amount each month. If you do, you should be able to cover most of the cost of maintenance and repairs as they arise.
This type of budgeting has worked well for us and the owners we work with. If you have any questions about maintaining your rental property, please feel free to contact us at Residential Property Management in Portland.