The importance of a maintenance fund

Provident Property Management strives hard to keep maintenance costs low for homeowners. However, there comes a time in every home's life that something will need to be fixed. Even newer homes need regular maintenance to keep them in good shape. That's why Provident recommends that clients keep a maintenance fund. But why is it important and how much money should they save?

Creating a maintenance fund is invaluable, especially to the investor with multiple properties or older properties. Older properties obviously have more problems associated with age than other properties, and just having more properties will increase the likelihood of something needing to be fixed.  Routine maintenance and larger repairs need to be addressed. Just like we know that our cars will need gas and an oil change every so often, we know that our homes will need furnace filters and lightbulbs changed. These needs can be addressed through a maintenance fund. We also should anticipate that a roof will need to be repaired or replaced. There are also times that a disaster of some sort may hit our homes, when we will need to have an insurance deductible available in order to get the damage fixed. In the face of a large repair cost, turning to a credit card may not be the prudent solution.

So what should homeowners plan for and how much should be saved? One source suggested a maintenance fund should be more than the monthly mortgage amount. It should definitely be more than the insurance deductible, just in case the large repair is covered by the insurance company. In order to budget accordingly, the homeowner should be familiar with the home and it's needs. Be familiar with the age and condition of the roof, the furnace, and the air conditioner. If tenants are constantly complaining about pipes backing up, than having a plumber out to assess the problem and recommend solutions and prices may be helpful in deciding how much needs to be saved.

Provident is committed to keeping maintenance costs low, while keeping your property in good repair. A well maintained property is easily rented. We can help you assess your property and decide how much money should be saved for maintenance needs that may arise in the near future and long-term. Please contact us for more details.