How to Reduce the Cost of Maintaining a Home

Owning a home comes with more expenses than just mortgage, taxes and utilities. Homeowners also need to consider maintenance costs. 

Some experts recommend that homeowners sock away 1% of their home’s value for repairs and maintenance each year. But that number can vary significantly based on several factors. 

Many maintenance tasks can be performed by a homeowner with minimal knowledge or experience, saving money on professional services. However, there are some things that should only be done by an experienced professional. 

Do-It-Yourself 

One of the best ways to reduce your maintenance costs is to do as many tasks as possible yourself instead of hiring a professional. This will save you money on labor fees and it can also be a great way to learn some new skills. 

Before you decide to take on a DIY project, consider your own skill level and the nature of the task. There are some things that you should only attempt if you have the necessary experience, such as working with electricity or plumbing. 

Also, make sure you track your home maintenance expenses throughout the year so that you have a better idea of what is typical for your area and your specific needs. This will help you plan and budget for future repairs and ensure that you have enough savings to cover unexpected problems. 

Budgeting 

Keeping up with routine maintenance and budgeting for home repairs can help you avoid costly surprises. Experts generally recommend saving 1% to 3% of your home’s purchase price each year for a combination of home improvement, maintenance and repair costs. 

One way to calculate how much you should save is by using the square foot method. Simply divide your house’s total square footage by 12 to get an annual estimate for how much you should save in order to cover all your home upkeep costs. 

While saving several thousand dollars for home upkeep might feel intimidating, putting away a small percentage of your income each month could help you reach your goal more quickly. Moreover, if you can afford to, directing cash windfalls like tax refunds, bonuses and commissions into a home savings account could also make a big difference. And if you’re handy, you might be able to save even more by doing some of the chores yourself rather than hiring professionals. 

Repairs 

One of the simplest ways to reduce maintenance costs is by dealing with repair issues as soon as they arise. For example, a leaky window or a shingle that’s

damaged in a storm should be fixed right away to avoid costly repairs down the road. Similarly, replacing worn items can be cheaper than replacing them with new ones. 

These tasks are part of a homeowner’s regular home maintenance, but not everyone is diligent about performing them. When it comes to major repairs like repairing a sinking foundation or replacing a water heater, homeowners often find themselves in over their heads. This is why having appliance warranties for your household appliances is so important. 

Some experts suggest a rule of thumb that homeowners should set aside 1% to 2% of their home’s cost per year to cover repairs and maintenance. This figure is wide ranging, but a good place to start when creating a maintenance budget. Investing in a house requires serious consideration, and it’s never too late to put money aside for unexpected repairs. 

Replacements 

One of the most expensive parts of home maintenance is replacing things that break or wear out. Skipping routine care can lead to bigger problems down the road, such as a little dry rot turning into a collapsed deck or a clogged dryer vent that causes a fire. 

To help reduce this cost, make sure to keep a reserve in place. It’s recommended to set aside between 1% and 4% of your home’s value each year. You can also use a method that involves saving $1 per square foot of your home each year, or you can find online charts or articles that estimate how long components typically last. 

The key to reducing the costs of maintaining your home is being proactive and making repairs as they come up. You can also reduce your home maintenance costs by buying a newer home that hasn’t experienced as much wear and tear, or conduct a comprehensive home inspection before purchasing a pre-owned property to avoid unexpected expenses down the road.