{"id":16026,"date":"2020-04-22T11:53:04","date_gmt":"2020-04-22T18:53:04","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=16026"},"modified":"2020-04-22T11:53:04","modified_gmt":"2020-04-22T18:53:04","slug":"home-maintenance-budget","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/home-maintenance-budget\/","title":{"rendered":"Budgeting for Home Maintenance: How Much Should You Set Aside?"},"content":{"rendered":"

All homes need maintenance to some degree. Home Advisor\u2019s State of Home Spending Report found that in 2018, homeowners spent<\/a> an average of $1,105 on maintenance and $416 on emergency home expenses. But this can vary based on the age of your home as well as the materials and workmanship that went into building it. How much should you personally set aside to cover day-to-day expenses and ward off any big-ticket surprises?<\/p>\n

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Source: (Bich Tran \/ Pexels)<\/figcaption><\/figure>\n

How much to budget for home maintenance<\/h2>\n

One popular rule is to set aside 1%-3%<\/b> of the home\u2019s value for a home-maintenance fund, but Connie Taylor<\/a>, a top agent in Amarillo, Texas, recommends using the \u201c<\/b>square footage rule<\/b><\/a>,<\/b>\u201d which says to budget $1 per square foot, per year. \u201cThe value of a home can change, but the square footage won\u2019t,\u201d she points out.<\/p>\n

This means that for a 2,600-square-foot home, your annual home maintenance budget would be $2,600.<\/p>\n

Aside from the home maintenance budget, Taylor says it\u2019s wise to also have cash reserves for any bigger, one-time costs, such as replacing an HVAC system, water heater, or kitchen appliance. For this fund, she recommends starting with $1,000 and working up from there.<\/p>\n

The key is to be proactive and create a home maintenance budget from day one, rather than only reacting when things go wrong. By setting aside smaller, more manageable amounts of money on a regular basis, you\u2019ll be less likely to have to sink a large chunk of cash into expensive overhauls down the road.<\/p>\n

As an example, let\u2019s say you\u2019re planning to replace your aging roof eventually and before it starts causing problems. According to Remodeling Magazine\u2019s Cost versus Value Index, in 2019, an asphalt roof replacement averaged about $22,000<\/a>.<\/p>\n

\u201cThat is probably a very scary number for many homeowners, but if you have the money set aside for a new roof, then you can use your maintenance budget for smaller repairs, like fixing a garage door or replacing a faucet,\u201d Taylor points out.<\/p>\n

And in the best-case scenario, you can tap into any available warranties to cover major repairs or replacements. Check out this guide that estimates home-repair costs<\/a> with and without warranties.<\/p>\n

Also, it\u2019s a good idea to include the amount of your homeowners’ insurance deductible<\/a> in your reserve account, so you\u2019ll be prepared to make a claim for any covered repairs, such as hail damage to a roof. Check with your insurance company to see whether your deductible is a fixed-dollar amount or based on a percentage of the repair costs.<\/p>\n

How to tailor your budget to what your home needs<\/h2>\n

In addition to square footage and\/or home value, there are other factors to consider when planning your home maintenance budget:<\/p>\n