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Podcast: Property Management Brainstorm
Episode: Five Minute Friday #52 - How Much to Budget for Maintenance on a Rental Home?
Description: How much should a landlord expect to spend keeping their home maintained? It's a common question and there are some rules of thumb and considerations owners of rental properties can keep in mind when setting aside reserves to handle unexpected reserves.The 1% Rule:Â this popular rule says that 1% of the purchase price of your home should be set aside each year for ongoing maintenance. Using this logic, if your home is worth $450,000, you should set $375 a month for expected home maintenance and anticipate about $4,500 in repair costs during the year.The Square-Foot Rule: another practical approach is to b...