Few investments can be as rewarding or lucrative as owning residential real estate. Not only because, as Lex Luthor said, “Land is the only thing they’re not making any more of,” but because helping people find homes and running the most efficient business possible can be personally gratifying. But investors can become so fixated on the cost of buying property that they forget that much of the ultimate cost is in maintaining the property.
Property maintenance adds up to a significant cost over time, and understanding that cost is the best motivation for taking the necessary steps to minimize it. In this blog we’ll take a look at what maintenance can cost a residential property owner, to prepare for talking about keeping those costs low in the future.
Itemized expenses
Let’s examine what investment property maintenance costs look like, just in the state of California. The following annual costs (per unit) could vary significantly, but are still only the costs of regular and preventive procedures, not of the repairs necessary when facilities aren’t properly maintained.
- Appliance repair or replacement: $200 – $1000
- Carpet cleaning: $100 – $300
- Deep cleaning: $300 – $800
- Electrical: $500 – $2,000
- Exterior painting: $1,500 – $5000
- Flooring: $500 – $2000
- Gutter cleaning: $100 – $300
- HVAC Servicing: $150 – $500
- Lawn care and landscaping: $1,200 – $3,600
- Painting and repairing walls: $500 – $1500
- Pest control: $300 – $600
- Plumbing: $300 – $1000
- Property inspections: $200 – $500
- Roofing: $500 – $2,000
- Siding repair: $500 – $2000
- Trash removal: $200 – $600
- Water heater: $150 – $300
- Window cleaning: $100 – $300
If this list seems very long and pricey, the bad news is it’s not remotely comprehensive, and only includes the costs for regular preventative maintenance, not replacement. Once things need to be replaced, costs really start skyrocketing — but if you’re doing more replacing than maintaining, it’s time to reevaluate your strategy (and definitely to invest in an AI-assisted platform like FacilGo.)
The big picture
It might help to look at these costs as a lump sum. According to Thumbtack’s Home Care Price Index, the average annual cost to maintain a single family home rose to an all-time high of $10,433, in Q3 of 2024. A Bankrate study was even more dramatic, finding that the typical single-family home costs over $18,000 per year in hidden expenses.
Much of this higher pricing has to do with the dramatic rise of overall costs since the COVID-19 pandemic, but insurance costs especially have been pressuring homeowners, increasing the need to perform regular maintenance and safety upgrades to lower premiums and reduce costly repairs. This is especially true as climate change leads to more frequent weather emergencies.
What can be done
Though these costs can seem daunting, it is vital to remember that property ownership remains a very lucrative and rewarding industry. And if it’s not already clear from the list above, the cost of maintenance is much lower than the cost of replacement and repairs. Responsible, conscientious property owners can maximize ROI by performing regular, reasonable upkeep and preventative maintenance, minimizing both replacement and repair costs and resident churn — since well-maintained units lead to happier residents.
