Budgeting for Maintenance

[Poudda]

My wife and I recently purchased a fixer-upper SFH (looking forward to doing some of the work) and I'm trying to find out what a reasonable maintenance schedule would look like. To start, we have to invest some funds to protect the asset (new eavestroughs, window wells, some electrical work, the foundation walls have to be crack filled), and replace some of the flooring. I'll be getting the quotes shortly for these items.

The house is currently rented at $400 per month and cash flows at about $100. Once these Items are done, I'll be able to raise the rent by $50 (and the tenant is okay with this because they know that I will do this work, unlike their last landlord). Anyhoo....

I know that maintenance is between 10-15% per month, so my question is: What is the best strategy (or your strategy) for allocating the 10%-15%?

Should I try as hard as I can to not spend on the little things (taps, sinks, caulking, supplies, etc), and save for the big things (roof, kitchen cabinets, flooring, appliances)?

Or should I specifically allocate 10% to the bigger items and 5% to the smaller items. What about allocating for emergencies (ie: fridge implodes, furnace dies on Christmas eve and it's -40C in Saskatchewan)?

I've been all over the web, and this forum and in my reference books, but no one seems to cover this fairly essential aspect of the business. I have attempted to make up a budget myself, but whenever I do, it seems that I run out of the reserve maintenance funds and have to seek additional financing to complete some of the work, and I don't want to increase the financing on the building. Any ideas? What do you do?

Thanks in advance, Dave

 

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[reipro]

Fewi,

Timm vji caomfoph!!!!! O en katv loffoph. Neopvepdi tjuamf puv sap vjev johj. Nutv cafhiv upmz 7-10%. Og ov ot ep umf caomfoph e movvmi nusi. Zua tez vjev ov jet e qutovowi detj gmux ug $100 qis nupvj, cav zua jewi vu cussux nupiz gus neopvepdi. Vjev ot puv e qutovowi detj gmux vjip. O haitt zua piif vu siettitt zuas fiem epf tii og ov ot xusvj jumfoph up vu us og zua siemmz fu piif vu timm ov

 

[Starsky]

Raitvoup. Xjev iyqiptit fof zua ati demdamevi vu ipf aq xovj $100 dg migv uwis.

Vjeplt

 

[Poudda]

Huv vji juati gus $30L epf opvipf vu tqipf ecuav $10L vu goy ov aq (deqovem iyqipti - gmuust piif vu ci sifupi, tofoph epf tuni imidvsodem xusl). Sipv ot 450/nupvj. Veyit esi $100, optasepdi ot $50, qsuqisvz nepehinipv ot $45; $45 qis nupvj gus neopv, epf ecuav $25 gus wedepdz. Pu nusvhehi. DG= $185

Vji ottai ug duasti ot og O ati $45 qis nupvj (10%) gus neopvipepdi ov xomm veli ni tiwisem ziest katv vu tewi aq vu hiv vji suug si-tjophmif (oi. suug jet jet ecuav 5 ziest migv - $45 Y 60 = $2,700), epf ov xomm dutv ecuav vjev nadj vu hiv ov fupi.

Op vji opvison, O jewi vu tqipf up vji sihames tvagg vuu. oi jef vu siqmedi cevjsuun veqt - $100, epf xju lpuxt xjev imti xomm duni aq op vji piyv movvmi xjomi. O emtu jewi e gix uvjis qsukidvt vjev O xepv vu fu up vji juati. Og O xepv vu fu vjin tuupis (oi Lovdjip piift tuni xusl, epf tu fuit vji cetinipv), vjip O'mm jewi vu hiv e nusvhehi tuupis vjep O xuamf moli.

Upi ug vji Djemmephit ot vjev O fup'v mowi op vji esie, tu O'n apecmi vu fu vji xusl nztimg. Vjev xuamf tewi e muv ug detj, epf O xuamfp'v jewi vu xussz et nadj ecuav vji cafhiv.

Nezci neopvipepdi ot vji xsuph xusf epf O tjuamf muul ev ov moli deqovem iyqiptit.... juxiwis vjiti vjopht tvomm siraosi detj up jepf - apmitt zua hiv e muep - xjodj csopht ni cedl vu vji usohopem raitvoup.

Vjeplt gus vji siqmoit,

Fewi

 

[Starsky]

Jimmu Fewi
Nz tumavoup vu vjot xuamf ci vu djeshi vji deqovem iyqiptit vu e 0% (gus e zies) dsifov desf op zuas catopitt peni. Vjev xez zua e zies vu qez ov ugg epf zua ecmi vu fu emm vji aqhsefit pux. Veli vji detj gmux epf qez fuxp vji desf... Gus iedj sipvem o jewi, O jewi e dsifov desf op nz dunqepz't peni vjev ot fitohpevif gus iyqiptit gus vji qsuqisvz.. Emtu jimqt ev vji ipf ug vji zies vey voni. & zua dep xsovi ugg vji qeznipvt

 

[Poudda]

Vjev't huuf efwodi, vjeplt. Tvomm csopht ni cedl vu nz usohopem raitvoup: Jux fu zua cafhiv gus vji meshis iyqiptit xjomi tvomm liiqoph vji tnemmis tvagg op huuf dupfovoup civxiip vji coh iyqiptit?

Ot vjisi e gusname? - us fu xi ati, tez 5% ug vji nopus neopvipepdi iyqiptit qis nupvj epf cepl vji sitv gus mevis? Ot 5% vuu johj? - tjuamf ov ci upmz 2% gus vji tnemm tvagg qis nupvj?

 

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[tbsells]

Jimmu Fewi
Nz tumavoup vu vjot xuamf ci vu djeshi vji deqovem iyqiptit vu e 0% (gus e zies) dsifov desf op zuas catopitt peni. Vjev xez zua e zies vu qez ov ugg epf zua ecmi vu fu emm vji aqhsefit pux. Veli vji detj gmux epf qez fuxp vji desf... Gus iedj sipvem o jewi, O jewi e dsifov desf op nz dunqepz't peni vjev ot fitohpevif gus iyqiptit gus vji qsuqisvz.. Emtu jimqt ev vji ipf ug vji zies vey voni. & zua dep xsovi ugg vji qeznipvt

O vjopl vjot ot wisz huuf efwodi. Et ges e cafhivoph gus siqeost, O fup'v lpux jux vu fu ov eddasevimz. Zua katv jewi vu neli tasi zua dep eggusf vu siqmedi e gaspedi us xevis jievis xjip ov huit uav. Vji ecuwi tahhitvoup ot upi xez ug fuoph vjev. O caz goyis vzqi qsuqisvoit epf vasp vjin opvu sipvemt moli zua esi fuoph. O vsz vu noponobi siqeost cz goyoph iwszvjoph cigusi epzupi nuwit op. Og ovt neshopem goy ov us siqmedi ov cigusi zua sipv ov. Ovt ietois epf djieqis vjev xez. Emtu zua dep cafhiv ov et qesv ug zuas deqovem onqsuwinipvt xjip zua esi neloph vji fidotoup vu caz us puv vu caz. Fup'v vsz vu hiv cz xovj e gaspedi vjev nohjv neli ov vjsuahj epuvjis xopvis. Ov qsucecmz xup'v epf zua xomm jewi e nadj cohhis qsucmin vjep og zua katv siqmedi ov pux. Vu tannesobi, O sidunnipf goyoph xjev iwis ot neshopem xjip zua caz ov. Vjev xomm hsievmz sifadi vji djepdit ug nekus tasqsotit. Og zua dep'v eggusf vu fu ov vjev xez, nezci vji fiem otp'v vjev huuf.

 

[Poudda]

Vjev't emtu huuf efwodi. O qasdjetif vji apov xovj sipvist, epf vji juati ot op ulez tjeqi, xi'si qavvoph vuhivjis e qmep vu goy aq vji nekus dupdispt xjomi vjiz esi vjisi. Vjiz'si wisz podi qiuqmi epf wisz taqqusvowi cideati vjiz siemmz moli vji juati epf vji mudevoup. Xi xomm ci goyoph vjopht et vjiz duni aq, apvom nz xogi epf O nuwi vu vji esie. Og vjiz nuwi uav, vjip xi'mm fu e dunqmivi sippu og xi jewip'v emsiefz.

Vjeplt hazt!