Home repairs and maintenance can range in cost, depending on the size of your house and its location. If you can, it’s a good idea to keep an emergency fund to cover unexpected expenses. But on the other hand, many homeowners invest in home warranties to cover unexpected expenses for repairs. If you are wondering, “What is a home.warranty?” Home warranties cover a variety of appliances and systems that can break down or need repairs. Be sure to check with each specific company to determine what plans fit your needs.
Experts recommend saving a minimum of 2% of your home’s purchase price each year for maintenance costs. With a warranty, you do have the peace of mind knowing appliances and such may be covered.
1. Get rid of unnecessary complexity
When it comes to home maintenance, simple is usually better. Every new appliance, complex landscaping element, or major change to the property will require more work to maintain and repair. It is important to get a feel for your property over time to see what the typical expenses are, allowing you to plan accordingly.
For example, a brand new house will have fewer systems that could break down and less wear-and-tear from previous owners than a house that is 20 years old. In this case, a 1 percent rule might be appropriate for a newer house but more like 2-3% might be needed for an older house.
Many maintenance tasks are also simple enough that they can be performed by the homeowner without much technical knowledge or experience, reducing the need to hire professional help. This can save thousands of dollars in maintenance costs over the course of a lifetime.
2. Make repairs as soon as possible
The best way to cut down on home maintenance costs is to make repairs as soon as you notice them. This can prevent a minor repair from becoming a major replacement or renovation later on. Another option is to tuck money away into a yearly maintenance budget. One common rule is to save 1% of your home’s purchase price, but this can be difficult to calculate since housing prices are constantly changing.
You can also try basing your budget on square footage, which gives you a more stable estimate. But even this approach can be inaccurate, especially if you live in an area with high rainfall or a climate that can cause erosion or other problems. Getting to know local contractors is a good way to reduce your costs.
3. Keep an emergency fund
One of the best ways to reduce the cost of maintaining a home is to have an emergency fund. According to a 2021 study from the insurance company Hippo, the typical household should budget at least 1% of their home’s value for maintenance costs.
That’s a good baseline, but it’s better to save even more than that. You can start by setting up an automated savings plan, either through your employer or a bank.
Aside from your planned contributions, divert any windfalls like tax refund checks or cash back from purchases to this fund instead of spending them. This will help your funds grow faster. Then, when a problem arises, you can pull from this reserve rather than charging it to your credit card.
4. Keep an eye on your energy bills
Regardless of what you do to avoid costly repairs, the truth is that every home will require some amount of ongoing maintenance. Appliances don’t last forever, and systems like plumbing and electrical will eventually need to be replaced.
An energy audit can help you figure out if leaky windows and doors, inefficient appliances, or insufficient insulation are driving up your bills. Some utility providers even offer them for free or at a low cost, and they can recommend fixes to help reduce your energy usage.
Keep in mind that your house’s electric devices are consuming energy all the time, even when you’re away on vacation or at work. Compare electricity and gas rates with your provider to see whether options like time-of-use pricing or off-peak hot water are worth it for you.
5. Schedule regular maintenance
The best way to reduce the cost of maintaining your home is to regularly perform preventive maintenance. By doing so, you can catch issues before they become major problems. This can save you a lot of money in the long run.
Unfortunately, you can’t avoid all maintenance costs entirely. However, you can minimize them by establishing a regular budget and sticking to it.
A good rule of thumb is to set aside 1%-4% of your home’s value annually in a maintenance fund. This can help you keep up with recurring expenses and plan for any big repairs or updates that may be on the horizon.
As the old saying goes, an ounce of prevention is worth a pound of cure. By following these simple tips, you can reduce the cost of maintaining your home and ensure a comfortable living environment for you and your family.
