When it comes to Windsor property management, every landlord or property owner needs to come up with an reasonable amount to budget for maintenance and repairs on rental properties. Normally, the age of the property is going to impact the amount of money you put aside for potential maintenance issues that might arise. Newer properties will typically require much lower maintenance reserves than properties that are a bit older. For example, if you have a home that was built in 2005, you can typically expect to spend less on maintenance than you would for a property that was built in 1965. The older the home, the higher the maintenance expenses are likely to be.
It is important to save on a regular basis. Every month that rent is collected, you should put a portion of that income away for potential repairs and expenses. At DeDe’s Rentals, we recommend that, for newer homes, you should reserve between 10 and 15 percent of the rent for maintenance and repairs. On older homes, your reserves could be closer to 20 percent. This might sound like an extraordinary amount, because you could have no maintenance expenses at all for months or years. However, if you continue to save that money every month, you’ll have enough funds in the bank when it comes time to replace a roof, replace a cracked driveway, or manage other costly maintenance issues. Your repair and maintenance costs will occasionally spike, which is why it is so important to set aside a little bit every month to cover these anticipated expenses.
In older houses, there are also regulatory issues to consider, such as asbestos and lead hazards. Repairmen performing significant work on residences built before 1981 require asbestos training and certification. If the house was built before 1978, certification in handling lead hazards will be an additional requirement. As the homeowner and the landlord, you are responsible for ensuring that you hire competent, qualified and certified vendors. Unfortunately, the inherent costs associated with hiring the right vendor will be reflected in your bottom line. For example, painting the exterior of a house built in 1949 will be significantly more expensive than the same job for a house built in 1989. Ignoring the regulations is a serious risk, however. OSHA and EPA could assess fines of $25,000 or more for gross violations of asbestos and lead handling procedures. If so, both the vendor and the person hiring that vendor could have a legal and financial liability. If you own property built before 1981, you have to anticipate that this will affect the cost of repairs to your property, and subsequently, will affect the amount you have to set aside in reserve.
Not every property absorbs 15% of the rent in repairs each and every month. Honestly, that possibility is so remote as to be non-existent. However, saving a small percentage every month will help you to be prepared financially for eventual maintenance costs and major repairs. Asbestos and lead regulations require a more in depth conversation, so if you have any questions about those matters, please do not hesitate to contact us at DeDe’s Rentals, (707) 523-4500. We’d be happy to discuss how much you should be saving for rental maintenance, and how WE can help simplify the management of your investment.
If you have any questions please feel free to contact us at DeDe’s Rentals. We will be happy to help you.