All homes need maintenance to some degree. Home Advisor’s State of Home Spending Report found that in 2018, homeowners spent an average of $1,105 on maintenance and $416 on emergency home expenses. But this can vary based on the age of your home as well as the materials and workmanship that went into building it. How much should you personally set aside to cover day-to-day expenses and ward off any big-ticket surprises?

How much to budget for home maintenance

One popular rule is to set aside 1%-3% of the home’s value for a home-maintenance fund, but Connie Taylor, a top agent in Amarillo, Texas, recommends using the “square footage rule,” which says to budget $1 per square foot, per year. “The value of a home can change, but the square footage won’t,” she points out.

This means that for a 2,600-square-foot home, your annual home maintenance budget would be $2,600.

Aside from the home maintenance budget, Taylor says it’s wise to also have cash reserves for any bigger, one-time costs, such as replacing an HVAC system, water heater, or kitchen appliance. For this fund, she recommends starting with $1,000 and working up from there.

The key is to be proactive and create a home maintenance budget from day one, rather than only reacting when things go wrong. By setting aside smaller, more manageable amounts of money on a regular basis, you’ll be less likely to have to sink a large chunk of cash into expensive overhauls down the road.

As an example, let’s say you’re planning to replace your aging roof eventually and before it starts causing problems. According to Remodeling Magazine’s Cost versus Value Index, in 2019, an asphalt roof replacement averaged about $22,000.

“That is probably a very scary number for many homeowners, but if you have the money set aside for a new roof, then you can use your maintenance budget for smaller repairs, like fixing a garage door or replacing a faucet,” Taylor points out.

And in the best-case scenario, you can tap into any available warranties to cover major repairs or replacements. Check out this guide that estimates home-repair costs with and without warranties.

Also, it’s a good idea to include the amount of your homeowners’ insurance deductible in your reserve account, so you’ll be prepared to make a claim for any covered repairs, such as hail damage to a roof. Check with your insurance company to see whether your deductible is a fixed-dollar amount or based on a percentage of the repair costs.

How to tailor your budget to what your home needs

In addition to square footage and/or home value, there are other factors to consider when planning your home maintenance budget:

• Age of the home: This will directly correlate to the age of any major systems and components, like the HVAC system, plumbing, kitchen appliances, and roof. You should plan to replace your major appliances about every 10-15 years and keep in mind that even a brand-new home will require some level of maintenance.
• Plans for future renovations: If you know that you want to update a bathroom in a few years, for example, you can break down that cost into a monthly amount and add that to your maintenance budget.
• The regional climate: Seaside homes can take a beating from corrosive salt air and storms, so there might be a greater need for maintenance to paint, fences, and roofing. And if you live in an area that sees harsh winters, you’ll want to build in snow removal costs.
• Materials: Some materials will require more or less maintenance than others. For example, Hardie board (cement board) siding tends to offer greater longevity and durability, while stucco can be more prone to damage.
• Number of levels: Homes with basements will be more vulnerable to water damage and flooding, for example.
• Family size and activity level: Generally speaking, the more children in a household, the greater the chance of wear and tear and the more frequent need for paint touch-ups and repairs.

Where should you keep your home maintenance savings?