As a landlord, you know that appliances are essential for providing comfort and convenience to your tenants. However, appliances also require regular maintenance and occasional repairs to keep them in good working order. If you neglect these tasks, you may end up with unhappy tenants, lower property value, and higher expenses.
But how much should you budget for appliance repair and maintenance costs in your rental property? And how can you save money and avoid unnecessary expenses? Here are some tips to help you plan ahead and manage your appliance costs effectively.
- Estimate your annual appliance costs based on your property value and age. A common rule of thumb is to set aside 1% to 4% of your property value each year for maintenance and repairs, including appliances. However, this may vary depending on the age and condition of your appliances, as well as the local climate and market conditions. Newer appliances tend to have lower maintenance costs than older ones, but they may also be more expensive to replace if they break down. You can use online tools such as HomeAdvisor or Angi to get an average estimate of appliance repair costs in your area.
- Inspect your appliances regularly and perform preventive maintenance. One of the best ways to avoid costly repairs is to keep your appliances in good shape. This means checking them for signs of wear and tear, cleaning them properly, replacing filters and parts as needed, and following the manufacturer’s instructions. You can also hire a professional appliance technician to inspect and service your appliances at least once a year. This can help you catch potential problems early and extend the lifespan of your appliances.
- Keep track of your appliance warranties and service contracts. If your appliances are still under warranty or covered by a service contract, you may be able to save money on repairs or replacements. Make sure you keep your warranty information and receipts in a safe place and contact the manufacturer or service provider if you need assistance. However, be aware that some warranties or contracts may have limitations or exclusions, so read the fine print carefully before making a claim.
- Compare quotes from different appliance repair services before hiring one. If you need to hire an appliance repair service, don’t just go with the first one you find. Shop around and get at least three quotes from different providers to compare their prices, quality, and reputation. You can use online platforms such as Angi or HomeGuide to find verified appliance repairers near you and read reviews from other customers. You can also ask for referrals from your friends, family, or other landlords who have used appliance repair services before.
- Consider replacing old or inefficient appliances with newer models. Sometimes, repairing an appliance may not be worth it if it is too old, damaged, or inefficient. In such cases, you may be better off replacing it with a newer model that has better performance, energy efficiency, and features. This can help you save money on utility bills, attract more tenants, and increase your property value. However, before you decide to replace an appliance, make sure you weigh the costs and benefits carefully. You can use online calculators such as Energy Star or Consumer Reports to compare the energy savings and payback period of different appliance models.
- Set up an emergency fund for unexpected appliance repairs or replacements. Even with careful planning and maintenance, appliances can still break down unexpectedly due to accidents, natural disasters, or vandalism. To prepare for these situations, it is wise to have an emergency fund that can cover the costs of urgent appliance repairs or replacements. Ideally, you should have at least $10,000 in your emergency fund, but this may vary depending on the size and type of your property and appliances. You can build up your emergency fund by setting aside a portion of your rental income every month or by using other sources of income such as savings, investments, or loans.
By following these tips, you can budget for appliance repair and maintenance costs in your rental property more effectively and efficiently. This can help you reduce your expenses, increase your profits, and provide a better living experience for your tenants.
If you need professional assistance with managing your rental property or finding quality tenants, contact Peach State Property Management Pros today! We are a full-service property management company that offers comprehensive services such as tenant screening, rent collection, maintenance coordination, inspections, evictions, accounting, and more. We have over 20 years of experience in the Atlanta metro area and we are committed to providing excellent customer service and satisfaction.