How Much Will Maintenance Cost Each Year For My Rental Property?

Like your own home, your rental property is going to need regular maintenance and occasionally repairs to keep it in good shape. While every property will have unique costs depending on the age and condition of the home, it’s a good idea to have a savings plan in place to budget for regular maintenance and emergency repairs. This guide will help you plan a budget based on the value of your home and the age/condition of common household items and materials. 

How much to budget for home maintenance on a rental investment property

The easiest way to avoid getting caught out by maintenance costs is to have a home maintenance or emergency fund, putting money aside to budget for home maintenance costs on your rental property. As a general guide, you should set aside between 1 - 4% of your home’s value for maintenance. 

For example, a typical rental home on Belong is valued between $1M - $1.7M at the time of writing. Using these figures as a guide, the average Belong homeowner should expect to spend anywhere between $7,500 - $35,000 in home maintenance a year on their rental property. 

Of course, these figures will vary greatly depending on the age and condition of your home and if any repairs and upgrades have been made prior to renting out your home. If the roof on your rental home is 25 years old, it’s likely that you are going to need repairs or replacement on it sooner rather than later. If you have a brand new HVAC, you wouldn’t expect maintenance or replacement costs to pop up for another decade or so. 

As a general guide, the National Association of Home Builders estimates that the approximate lifespan of 10 common household materials are:

1. Roof: 20 - 50+ years (shingles and wood shake under 30 years and slat, copper and tile lasting longer)

2. Air Conditioning System: 10 - 15 years (5-7 for window unit)

3. Water Heater: 10 years (closer to 20 for a tankless system)

4. Appliances: 5 - 15 years for common appliances such as a refrigerator, oven range, washer and dryer, microwaves, and dishwasher

5. Furnace: 15 - 20 years

6. Deck: 20 years (less in hot humid climates, longer in dry areas)

7. Doors: These can last the lifetime of the house, though screen doors will need to be replaced after about 40 years and vinyl doors last around 20 

8. Floors: Well-maintained wood, marble and slate floors can last 100 years+. Tile floors last around 75 years, linoleum lasts about 25 years and vinyl up to 50 years. Laminate floors have a shorter lifespan of 15 - 25 years.

9. Gutters: 20 - 50 years depending on material (copper lasts longer than aluminum) 

10. Windows: 15 - 30 years 

If you think you will need to budget to replace materials or items in your rental property soon, create a priority list and set some savings goals for replacement. Here are potential cost ranges to plan for:

• Roof (asphalt): $5,443 – $11,206
• Deck (wood/composite): $15 – $30 per square foot
• Furnace: $2,500 – $7,000
• Air conditioning units: $1,000-$9,000
• Water heater: $900 – $2,000
• Garage door opener: $218 – $511
• Windows: $200 – $1,800 each
• House siding: $5,000-$12,000
• Sewer line or septic tank replacements: $5,000-$15,000

Investing in maintenance on a rental property can increase profits and reduce your tax bill

It makes good financial sense to care for your rental home by keeping it well maintained and in good repair. A well-kept and attractive home is more appealing to residents and could attract a higher rental return than your neighbors. 

Not only that, but many (not all!) necessary repairs and maintenance can also reduce your tax bill. Any repairs that keep your rental home in good condition are classified as a deductible expense in the year that you pay for it. This includes things like painting and fixing something that’s broken such as the toilet or a faulty light fixture. 

If you are making improvements to the property to increase the value of the home, this isn’t classified as necessary repairs and maintenance by the IRS. So if you decide to build a new deck or buy a new roof, this will need to be depreciated along with the value of your home and is not eligible for a direct tax deduction. 

This also means that from a tax standpoint, it’s more beneficial to address repairs in the year they arise, rather than letting them build up to a point where you need to renovate the home. 

Learn more: Tax Strategies for Rental Investors: 5 Ways To Make A Home Less Taxing

Routine and minor rental property maintenance costs 

Now that we’ve covered budgeting and costs in a broader sense, there are also several types of recurring rental property maintenance costs that you will need to plan for and will make up part of this overall budget.

Each rental property will require some regular or semi-regular maintenance, which will vary based on the condition and also location of the home. If your residents are going to be responsible for any of these costs (pool or garden maintenance for example), this will need to be outlined in their lease agreement. 

Routine rental property maintenance and their costs: 

• Waste management and recycling: $20-50/month 
• Pest prevention: $100-$250/quarter 
• HVAC filters: $150-$300/year 
• Gutter cleaning: $200-$600/year 
• Pool maintenance: $2,000-$4,000/year 

Seasonal maintenance costs 

The location and climate of your rental property can affect the cost of maintenance. If your rental property is in a warm environment, you can expect to need more frequent or year-round lawn or landscaping services. Remember that larger yards or properties with significant landscaping will likely cost more. 

Similarly, if your property is in a cold climate or where you expect significant snowfall, your snow removal services will likely cost more. As with other maintenance items, be sure that your residents understand which services are included in their lease and which tasks they’re responsible for. 

Seasonal maintenance costs:

• Lawn care: $100-300/month 
• Snow removal: $40 to $150 per visit 

Rental property maintenance requiring minor repairs 

You can expect every rental property to need minor repairs at some point. If your property is older or has not been updated recently, you should expect more frequent repairs. Conversely, if your rental property is new, newly renovated, or has new appliances, you may not need to budget for as many minor repairs. For the most accurate estimates, evaluate your rental property, appliances, and systems like the HVAC, water heater, and furnace. 

Common repair and costs: 

• Leaky faucets or toilets: $150-$400/each 
• Electrical repairs: $250-$900/each
• Appliance repairs - washer/dryer, refrigerator: $100-$400/each 

See the full list: 7 Common Rental Property Repairs and How Much They'll Cost You

HOA Maintenance and Fees 

Some rental property owners will find that their Home Owners Association (HOA) is responsible for some maintenance. The maintenance cost may be included in your HOA fees or will be completed at a pre-set rate. It is common for properties in apartment complexes or condo buildings to have HOAs who complete some maintenance. Carefully review all HOA documentation and note what maintenance is included. 

As you review HOA documents, you should also note if there are any requirements for properties in the association. For example, many HOAs have requirements associated with lawn and landscaping maintenance. Violations of these requirements often result in fines that can affect maintenance costs.  

How Belong eliminates the hassle of rental property maintenance

Homes need regular upkeep, so Belong has introduced a way to make sure preventive maintenance runs like clockwork. Add, pause or remove recurring services and maintenance subscriptions, right from the Belong app. From lawn mowing to gutter cleaning, set and forget your seasonal home maintenance and let Belong do all the work.

If unexpected repairs or emergency maintenance costs do arrive, Belong has that covered too. All Belong homeowners are pre-approved for our Split It program, which spreads the cost of repairs across the term of your lease. This means you’ll always stay cash flow positive, receiving guaranteed rent every month minus a Split It repayment.

To learn more about how Belong is making renting loveable for homeowners with flexible financing, rewarding perks and constant innovation, check out our homeowners page. Find out more about how our services are helping people to ditch property management in Seattle, San Francisco, San Diego, Los Angeles, Tampa, Orlando, Jacksonville, Miami and many more.