How much do you budget for maintenance/repairs per month?

6 Replies

@Brandon Pelfrey - I have purchased a duplex that was completely remodeled with almost everything being brand new. I put aside $250 per month for maintenance, repairs, vacancies, etc. 

I also live in Denver and purchased about 5 blocks north from Denver's largest park and am relatively close to downtown and the fun areas. For that reason, vacancy is pretty low. 

I (generally) disagree with those who use a percentage for this number - the amount of rent has little to do with how much maintenance items cost. Age & condition are far better indicators of maintenance costs than is market rent. Ex. A new hot water heater in a 2/2 renting for $1300/m costs the same as one going into a 2/2 that rents for $700/m, etc. Same applies for a clogged pipes, new paint, etc. Perhaps, with a high-end property there is an argument to be made for some things being more expensive to replace (nicer appliances, etc), but that's more capex than regular maintenance.

I typically budget $100-120/unit/month for general maintenance (depending upon age & condition of the structure), and 8% for vacancy (which I find to be on the conservative side).

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