Maintenance is an essential but often overlooked aspect of owning rental property. While regular maintenance can help avoid costly repairs and increase the longevity of your rental property, it’s crucial to have a plan in place to estimate how much each project or repair will cost accurately. This article will discuss four ways to estimate rental property maintenance expenses so that you can budget accordingly and be prepared for any potential problems.
1. Research Average Costs
The first way to estimate maintenance costs is to research average costs for common projects in your area. Websites like HomeAdvisor provide national estimates and local averages for re-painting, repairing siding, replacing appliances, and other common rental property maintenance expenses. Researching these costs can give you a good idea of what to expect when budgeting for a project.
It can also be helpful to research what other landlords in your area are charging for similar rental properties. Websites like Zillow’s Rental Network can provide information on local rental prices, giving you a better understanding of the typical costs associated with maintaining rentals. Rentometer and Hotpads offer data-driven rental price comparisons to compare your rental property with similar ones in the same area.
When researching average costs for maintenance projects, it’s important to remember that these numbers are just estimates. The actual cost of a project may vary depending on several factors, such as the project size, location, materials used, and labor costs. Some materials or labor may come at a premium price due to their specialized nature or availability.
2. Check with Local Contractors
Another way to get an accurate estimate is to check with local contractors specializing in rental property maintenance services. These contractors will be able to provide more detailed estimates based on the specific needs of your property, as well as their own experience working with similar projects. It’s also wise to consult multiple contractors so that you can compare prices and choose the one that’s best suited for the job.
It’s essential to consider the specific needs of your property when talking to contractors. If you have a large yard with many trees and shrubs, lawn maintenance logan could be an essential part of any rental property maintenance package. Additionally, certain areas may require more frequent or specialized lawn care, such as mowing, edging, trimming, and fertilizing. Contractors can provide accurate estimates for these services based on their experience and the size of your yard.
You should also inquire about other aspects, such as pest control services, that might be necessary for your property. These services usually involve regular inspections, providing treatments for any infestations found, and follow-up visits to ensure that all pests have been eliminated. Contractors can also provide estimates for these services and explain the methods available to eliminate pests.
3. Calculate Materials Costs
If you plan on tackling any projects yourself, it’s essential to factor in the cost of materials. Although you may be able to get specific items for a discounted price at your local hardware store, it’s still important to calculate these costs so that you know exactly how much money you’ll need to complete the project.
When calculating materials costs, consider the type and quantity of materials you need. Depending on the size and complexity of your project, this could include wood, nails, screws, paint, sandpaper, tile adhesive, grout, sealants, and more. Don’t forget to factor in any additional tools or accessories you need.
Before purchasing materials for your project, check out different stores for the best prices and deals. Many stores have bulk discounts if you purchase many items at once. It’s also essential to read through customer reviews to find higher-quality materials that will last longer than their cheaper counterparts.
4. Account for Incidentals
Lastly, it’s essential to account for any additional costs that may arise during a project. This could include additional materials needed due to unforeseen circumstances to permits or insurance payments required to complete a specific task. By accounting for these incidentals now, you can ensure that your budget remains on track and that unexpected expenses don’t come as a surprise when they arise.
One of the best ways to ensure that your budget remains in check and that you can account for any additional costs is to create a contingency fund. This should be an allocated portion of the budget for incidentals and unforeseen expenses. By knowing exactly how much you have available when something unexpected arises, you’ll be better equipped to decide whether you need to go ahead.
When creating your contingency fund, it’s essential to be realistic to get the most value out of it. You don’t want to over-allocate funds just in case something comes up, as this could take away from other areas of your project that may benefit from the additional funds.
In Summary
Estimating rental property maintenance expenses doesn’t have to be an overwhelming task. With some research and foresight, you can easily plan out projects and repairs in advance so that budgeting becomes much more manageable. Additionally, by considering all the different ways to estimate maintenance costs, you can ensure that your rental property remains in top condition for years to come. By following the four steps outlined in this article, you’ll be able to estimate your rental property maintenance expenses accurately and plan accordingly.
