Two Ways to Cut Your Maintenance Costs

There are two points in the investment process where you can reduce maintenance costs. The first is when you purchase a property. The second occurs when you renovate it.

Select Low Maintenance Cost Properties

The best way to keep maintenance costs low is by buying properties that don’t require much maintenance. The following are some property selection guidelines.

• Older properties require more maintenance than newer properties.
• Composition roofs require more maintenance than tile roofs.
• Properties in climates with hard freezes require more maintenance than properties in mild climates.
• Properties in locations with a lot of moisture require more maintenance than properties in dryer climates.
• Wood siding requires more maintenance than aluminum or stucco siding.
• Properties with lush vegetation require more maintenance than properties with little or no vegetation.
• Locations with high levels of termite activity will require more maintenance than areas with little or no termite activity.
• The tenant pool has a significant impact on your ongoing maintenance cost. Properties with frequent tenant turns will require more maintenance than properties where tenants stay many years. Let me know if you want to learn more about tenant pools.
• Do not buy properties with high-risk renovation items. See the table below.

Renovate to Lower Maintenance Costs

Renovation is transforming a property to increase rent, decrease time to rent, and reduce maintenance costs while spending the least money feasible. Often times there is a tradeoff between renovation costs and long-term maintenance costs.

For example, you could install low-cost carpets to save on flooring costs. However, these will quickly wear and must be replaced after only a few tenant turns. LVP (Luxury Vinyl Plank) is more expensive but highly durable and will last a long time.

Even the sheen of the paint makes a difference. Never use flat paint. There is no way to touch up flat paint. Plus, flat paint is easily damaged and absorbs moisture. We use eggshell sheen paint for walls and semi-gloss for trim and doors, which can be easily touched up or cleaned. We use flat white for the ceiling.

Another example is installing cabinet pulls. They can protect the cabinet surface and make them last longer.

The takeaway is that you can significantly reduce long-term maintenance costs by using more durable materials during renovations. It is a tradeoff between renovation costs and long-term maintenance costs.

Do you see any other ways to reduce maintenance costs? I would appreciate your feedback.