How much maintenance per annum is normal?

I'd be interested to know others experiences and thoughts on this matter. I've seen rules of thumb around saying that an allowance of 1% of a property's value per annum is a conservative average estimate, while others suggest closer to 3-4%.

This really is one of those "how long is a piece of string" type questions, as no doubt it can vary wildly from year to year and depends on the age and condition of the property. What sort of annual maintenance expenses are other investors here generally experiencing on a per annum basis?

Looking at mine, around 0.8% per annum is about right, although I've had a property sitting over 1% in the last financial year.

 

Yes a difficult one. One rule is the longer you hold an IP the likelihood you'll experience a big repair expense increases. The big ones include things like a hot water system, major sanitary drainage issues (aka tree roots), garage roller door fails, roof leaks etc.

1% of $500,000 is $5000 year on year which seems too much. Maybe it's factoring in a complete renovation at some stage, plus essential repairs. So, saving what's left of the 1% should be enough for a reno somewhere in year 10-15.

 

I've got a few.

On average I spend between $500-$1000 each year, each property, but that doesn't count the odd extra's, like a water heater. I find that I can go for ages, even a few years at a time, with hardly anything at all, but then when it rains, it pours, and almost every property needs something at the same time. Water heaters, stoves, plumbing, gutters, you name it.....it all seems to happen together. Then things settle down & go back to normal.

 

Actually, now that I recalculated correctly, it's more like 0.5% than 0.8% after removing some double counting which sounds less alarming.

$500-$1000 seems about normal per property when all is going well, had a property where the plumbing and electricals went haywire at the same time recently, and that figure is suddenly fourfold.

 

IP1 last year was 14 bucks (purchased in August 2014 aka 11 months).. for 15/16 their was also one repair for $0 due to just using scrap Laserlight and left over silicon from home.
Ip2 tenants moved in during May... fiddled with a few minor things but no costs involved.

Both solid mid 80s brick houses

 

Some properties are just one big continuous work order.

If you keep properties renovated and in good condition they don't need as much

 

Yes, I've got a couple that never need anything either....but like your ones, they are close to home & Hubby can pick up a part at Bunnings & fit himself, so you're not paying tradie rates for the small fixes. These ones are older than your ones.

 

I'd say less than 1%. You can have your good and bad years. I just had a fence replaced, 2 toilets and a sewer repair on one. Which only worked out at about 0.3% of the value and that is a bad year.

 

even better, develop, offload old and keep new, lots of benefits including depreciation

 

I don't pay too much attention to this stuff until 3 weeks ago.....I have to replace 4 air conditioner units at $2800 each unit, ouch, am feeling the pain

 

Totally depends on the property - I've got a double brick unit that seems to never cost a cent. Then on the other side of the spectrum I've got an older house that I keep pouring money into :-(

 

I feel your pain. Just purchased an IP which has 4 air con units. Cant wait until they decide to start dying

 

Solar hot water heaters are fun too!

 

We averaged $650 per property last financial year in repairs and replacements and was similar last year. Average age of property about 15 years. These are all strata titled.

 

I find 1pc is about right ...this includes fitout that tenants want too and building upgrades
(Mainly commercial)

 

Fixed

 

I see what you did there! BUT.....Solar are a LOT more expensive again.

 

Last FY, I spend around $15k in mainetance in total. Also, in addition, two annoying neighbours refusing to pay their share of the fence when the fence was clearly down and required replacing.

 

What did it set you back ?

Actually, will ask you later, I would prob replace with a normal unit if it failed, suppose it depends on cost and how long you will keep the place.

@norwoodman yeah, it is a variable, also varies with tenants, I like tenants that go to work so they do not sit at home all day and think ringing about maintenance is a social interaction.

some places cost more too, I avoid anything that has high maintenance written all over it.

also, if you think say with painting, that a place is going to want/need this once every 10 years and it is 10-20k to paint a place, well there is 1 to 2k just there if you do not get your hands dirty yourself.

 

Hi- I spend ~ 1% per year on older blocks of flats and ~0.4% per annum on newer brick/ tile houses. Guess need to factor into calcs the big hit every 15- 20 years on bathroom/ kitchen upgrades plus external paint/ carpet