Routine House Maintenance Costs And How To Budget For Them

Maintaining a home involves more than just paying the mortgage or rent. Routine house maintenance costs are an essential aspect of homeownership, yet they can often catch individuals off guard if not properly budgeted for. From HVAC servicing to gutter cleaning, regular upkeep ensures the longevity and functionality of your property.

In this article, we'll delve into the various routine house maintenance expenses homeowners should anticipate, offering practical insights on how to budget effectively to manage these costs without disrupting your financial stability.

What Are Average Home Maintenance Costs?

According to a survey by the National Association of Home Builders in 2019, the average cost of home maintenance is $950 per year. The estimated amount applicable to the average single-family home is variable and influenced by numerous factors. Maintenance costs can fluctuate based on variables such as the property's location, size in square footage and the number of occupants within the household.

What Factors Affect House Maintenance Costs?

Understanding the factors that influence house maintenance costs is essential for homeowners seeking to budget effectively and preserve their property's value. From the age and quality of construction to geographical location and climate, various elements shape the overall investment required to maintain a home over time.

Climate And Weather

Climate and weather significantly impact house maintenance costs by dictating the frequency and extent of necessary upkeep to preserve a home's structural integrity. Regions prone to extreme weather, including hurricanes, heavy rainfall or snowstorms, subject homes to heightened stress and wear. Intense temperature fluctuations can result in material expansion and contraction, leading to cracks in foundations, walls and driveways, while high humidity levels foster mold and mildew growth, necessitating increased cleaning and maintenance efforts. Exterior components such as roofing, siding and landscaping are particularly vulnerable to weather-related damage, with exposure to sunlight, rain, wind and snow accelerating deterioration.

Age Of The Home

The age of a home is a key determinant of maintenance costs, as older properties often require more frequent and extensive upkeep compared to newer constructions. As homes age, various components such as plumbing, electrical systems, roofing, siding and appliances naturally deteriorate, leading to an increased risk of failure and inefficiency. Structural elements may weaken, resulting in issues like foundation cracks or settling problems. Outdated features or building materials may necessitate modernization to meet current safety standards or energy efficiency regulations, adding to maintenance expenses.

Condition Of The Home

Neglected homes are prone to issues such as leaks, structural damage, plumbing and electrical problems, which can lead to costly repairs if left unattended. Such homes may require extensive renovations or replacements of key components like roofs, siding, HVAC systems and appliances to restore functionality and safety. Conversely, homes that receive regular maintenance experience fewer breakdowns and require less frequent, less costly repairs. Regular inspections and timely repairs are essential for preserving a home's condition and minimizing maintenance costs over time.

How To Calculate Home Maintenance And Repair Costs

Experts recommend using the “1% rule” to cover your annual house maintenance costs. You set aside 1% – 4% of the purchase price of your home each year to handle repairs and upgrades. If you bought a home for $200,000, you should have $2,000 – $8,000 saved per year for maintenance. If you own a large or older home, setting aside 4% may make more sense.

The 1% Rule

According to the 1% rule, homeowners should budget approximately 1% of their home's total value per year for maintenance expenses.

Here's how the 1% rule works: Suppose you own a home valued at $300,000. Applying the 1% rule, you would budget $3,000 per year for maintenance costs ($300,000 * 0.01 = $3,000). This amount is intended to cover regular upkeep, repairs and replacements of various components of the home, including but not limited to, HVAC systems, roofing, plumbing, electrical systems, appliances and landscaping.

The Square Footage Rule

Another method to estimate home maintenance costs is by budgeting $1 per square foot of livable space annually. For instance, a 1,500-square-foot home would require a $1,500 yearly budget or approximately $125 per month. However, this approach does not consider factors like the home's age, size or condition, which can significantly impact maintenance expenses.

Ask The Seller

Take advantage of the firsthand knowledge homeowners possess about their houses by inquiring about their maintenance expenditures. Adjust your budget based on the information provided by the seller, as they typically willingly share this insight.

What Does Routine Home Maintenance Include?

Routine house maintenance involves regular tasks and upkeep to ensure the proper functioning, safety and longevity of a home's systems, appliances and structural components. This includes activities such as cleaning gutters, inspecting for leaks, testing smoke detectors and servicing major appliances. On the other hand, routine maintenance typically does not involve major renovations, structural repairs or upgrades, which fall under the category of home improvements. Below you’ll find additional maintenance tasks to include in your routine:

• Lawn care: Regular lawn care is essential for maintaining the health, appearance and value of a property, encompassing tasks like mowing, watering, fertilizing and weed control to create an inviting outdoor space while preventing soil erosion and environmental damage.
• HVAC cleaning and maintenance: HVAC cleaning and maintenance are crucial aspects of home maintenance, ensuring efficient operation, indoor air quality and prolonging the lifespan of heating, ventilation and air conditioning systems.
• Pest prevention: Pest prevention is vital in-home maintenance, safeguarding against property damage, health hazards and costly infestations by proactively addressing and mitigating potential pest issues.
• Repainting: Repainting walls is essential in-home maintenance as it rejuvenates the interior, protects surfaces from wear and tear and enhances the overall aesthetics and value of the property.

How Can You Budget For House Maintenance Costs?

When considering how to budget for house maintenance, it's important to consider factors like the age and size of your home, as well as any ongoing issues or anticipated repairs. It's akin to setting aside a portion of your income regularly to address unexpected maintenance needs that may arise. By proactively managing maintenance tasks, you're not only preserving the integrity of your home but also safeguarding its long-term value.

Home Warranty

A home warranty is a service contract that covers the repair or replacement of major home systems and appliances due to normal wear and tear. Instead of paying the full cost of repairs or replacements, homeowners pay a deductible or service fee for each covered service call, easing the financial burden of unexpected home repairs. However, homeowners should carefully review the terms and coverage limits of their policy, as home warranties may not cover preexisting conditions, neglect or improper maintenance, underscoring the importance of regular upkeep and proactive maintenance efforts.

Set Aside Money From Each Paycheck

Regularly allocating a portion of your income toward home repairs and an upkeep fund, you gradually accumulate savings to cover unexpected maintenance expenses or planned repairs. This systematic approach enables you to build a financial cushion that mitigates the need to rely on credit cards or loans for unforeseen home-related expenses.

FAQs On House Maintenance Costs

These questions cover various aspects of house maintenance costs and can help homeowners better understand how to manage and budget for the upkeep of their properties.

How much does it cost to maintain a house per year?

The annual cost of maintaining a house typically ranges from 1% – 4% of its total value. For a home valued at $300,000, you would budget $3,000 – $12,000 per year to spend on annual upkeep.

What are the monthly costs of owning a home?

Monthly costs of owning a home typically include mortgage payments, property taxes, homeowner's insurance and potentially private mortgage insurance (PMI) if the down payment is less than 20%. Additionally, homeowners may budget for utilities such as electricity, water, gas and internet, as well as ongoing maintenance and repair expenses. Homeowners Association (HOA) fees may also apply for properties located within managed communities.

What are the hidden costs of buying a house?

Hidden costs of buying a house include expenses such as closing costs, which can range from 2% – 5% of the home's purchase price, and cover fees like loan origination, appraisal and title insurance. Additionally, homeowners should budget for property taxes, homeowners’ insurance and potential HOA fees, which vary depending on the location and type of property.

The Bottom Line: Routine Home Maintenance Can Save You Money On Home Repairs

Regular home maintenance is key to maintaining your property's value and preventing expensive repairs down the line. By staying proactive with upkeep, you can save money in the long run by addressing small issues before they become major problems. Remember to budget for routine maintenance costs and set aside funds regularly to cover unforeseen expenses. If you're ready to embark on the journey of homeownership, consider starting an application with Rocket Mortgage^® today for a smooth and efficient experience.