Join Australia's most dynamic and respected property investment community

Maintenance Cost

Discussion in 'Repairs & Maintenance' started by joel, 15th Oct, 2015.

?

How much does maintenance cost you?

  1. Less than 0.5%

    9 vote(s)
    50.0%
  2. 0.5-1.0%

    6 vote(s)
    33.3%
  3. 1.0-1.5%

    0 vote(s)
    0.0%
  4. 1.5-2.0%

    3 vote(s)
    16.7%
  5. 2.0-2.5%

    0 vote(s)
    0.0%
  6. 2.5-3.0%

    0 vote(s)
    0.0%
  7. More than 3%

    1 vote(s)
    5.6%
Multiple votes are allowed.
  1. joel

    joel Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    784
    Location:
    Adelaide
    I just want to see how much your maintenance costs you, as a % of property value, per annum.
    If you have multiple IPs you can vote multiple times (if you really want to..) or just use an average.
    Apologies if a poll like this has already been run.
     
  2. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    2,976
    Location:
    Brisbane
    I chose less than 0.5%. I went to my tax figures for the past financial year. However, I did not include yard mowing (because that is a choice I make and not really maintenance). I also had a house painted and ignored that because it would need to be spread over ten years.
     
  3. joel

    joel Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    784
    Location:
    Adelaide
    That's pretty good! Do you have many older properties?
     
  4. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    2,976
    Location:
    Brisbane
    We have ONLY old properties, but over the initial holding years, we have renovated and brought them up to better standard. That isn't maintenance either, but improvement. Once improved, we keep them in good nick.
     
  5. joel

    joel Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    784
    Location:
    Adelaide
    That's good. I'm interested to get more votes on this and see where the majority lies.
     
  6. Nemo

    Nemo Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    265
    Location:
    Somewhere
    Depends. Some years very little, some years everything goes wrong.

    I have two similar props, both built in the late 90's. One cost me about $500 in maintenance this year and the other over $10k.
     
  7. joel

    joel Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    784
    Location:
    Adelaide
    Far out what happened?
     
  8. Nemo

    Nemo Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    265
    Location:
    Somewhere
    Leaking showers - needed to rip up tiles, replace subfloor (in one bathroom) re-waterproof and re- tile 2 bathrooms, plus remove and replace mouldy gyprock, timber and carpet in a bedroom and hallway. Price doesn't include the reduced rent the tenant paid while the saga went on and on. Wasn't a good year to own that property.
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,589
    Location:
    Sydney or NSW or Australia
    Slums don't need maintenance ;)
     
    2FAST4U and D.T. like this.
  10. WattleIdo

    WattleIdo renovating Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,823
    Location:
    Central West NSW
    Bought blinds, carport and external painting for just one property this year. All up cost about 11K. That's not usual at all. Current tenants in sam property cost me a lot in maintenance too - window locks, door knobs, child proof oven, balcony railings, garage door etc. Have dealt with it all over the last few months. Now put my foot down. Any more unnecessary stuff needed, I'll give notice, move in myself and renovate.This property has cost me approx 1.5 -2 % recently.
    Renovated property requires very little work - new stove, new oven, a plug got stuck, minor stuff and not often. Already renovated is the cheapest option.
     
  11. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,600
    Location:
    Adelaide, SA
    I had about 3 aircond units go all at the same time last summer needing replacement which kinda sucked. Pretty minor stuff otherwise, taps, hinges, etc etc

    Bit of a myth that cheaper properties have higher maintenance costs some times because they also have lower expectations.
     
  12. Biz

    Biz Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,482
    Location:
    Sydney
    Pro tip: If the property is a bit old don't rent it to a stay at home mum. They bitch and moan about everything because they have nothing better to do than burn the world :)
     
    Perthguy, samiam, jins13 and 3 others like this.
  13. HUGH72

    HUGH72 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,124
    Location:
    FNQ
    It's highly variable and it depends on the tenants to some degree.
    Some properties cost nothing in maintenance for a couple of years but then I worry that problems aren't being reported and the place is becoming run down.
    I have a few problem places that always seem to have electrical or plumbing problems.
    The really good tenants often repair or replace minor items, some offer to paint internally for free rent which is good.
    Air conditioners failing over summer is always a big one and hot water systems.
    Fence replacements with OOs in adjoining properties interstate is great fun.:(
     
    2FAST4U likes this.
  14. York

    York Finance Broker Business Member

    Joined:
    24th Jun, 2015
    Posts:
    1,624
    Location:
    Sydney
    Helps to buy places in decent condition. Doesn't mean nothing can go wrong. But it helps. Or if you can do some work early on, it will help down the track in minimising costs. Of course things can always go wrong and cost a packet but thats the risk we take as property investors. Bathroom, kitchen appliances, HWSs and air con units being the main culprits.
     
    Perthguy likes this.
  15. jins13

    jins13 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    955
    Location:
    Sydney
    On the horizon right now doing the 2x driveways, installing a 4 in 1 light for a bathroom, getting rid of some old, useless shed in one of the property that makes the land look smaller than it is, roof cleaning/ possibly tile replacement and if there are some funds lying around fencing for one of the place because it has the old school yard fence.
     
  16. Whiz

    Whiz Member

    Joined:
    3rd Jul, 2015
    Posts:
    8
    Location:
    SE QLD
    For just maintenance and repairs, it's around .5% of the property value, but adding in replacing assets - eg. hot water systems, carpets, airconditioners - and that will nudge it up to 1% for that particular year.
     
  17. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

    Joined:
    22nd Nov, 2015
    Posts:
    158
    Location:
    Melbourne
    I've owned my property for 6 months now and maintenance during this initial period has been very costly. If it continues at the same rate over the full year the annual cost will be 0.7%. I'm hopeful that there will be fewer expenses over time, not more, now that some of the initial "kinks" have been worked out, but that's probably wishful thinking. That's what I get for buying a 100 year old Victorian in Melbourne....
     
    Perthguy and 2FAST4U like this.
  18. Perthguy

    Perthguy Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    4,798
    Location:
    Perth
    Looking at last year's figures: mine range from 0% to 0.25% PA. These are older properties renovated to bring down ongoing maintenance costs.
     
  19. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

    Joined:
    22nd Nov, 2015
    Posts:
    158
    Location:
    Melbourne
    Hi Perthguy - on average, what percent of the total initial value would you say you had to put into the renovation to bring down ongoing maintenance costs?
     
  20. Perthguy

    Perthguy Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    4,798
    Location:
    Perth
    Probably not very useful for you because these are cheap properties in the $350k to $500k range, DIY reno projects (paint, carpet etc) and some work was not invoiced even though invoices were always requested. Because these are low end rentals, a lot of the materials are from gumtree (new or good condition second hand). Tiles from a factory outlet etc. I would estimate the reno budget to be between 0.5% and 2.5% of the purchase price. This is whole other league to a 100 year old Victorian in Melbourne.