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Home Maintenance Costs

Curious about what it cost to maintain a home? We break down the different types of expenses and how to calculate the annual maintenance costs.

By Emily Southey | 8 minute read

Dec 16

Want to learn more about the cost of maintaining a house in Canada? Generally speaking, it is recommended that homeowners set aside 1% of their home purchase price for annual maintenance. Keep reading for more in-depth insight into home maintenance, including what this 1% goes toward and how maintaining your home can actually save you money down the line.

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What Is Home Maintenance?

Home maintenance is a term that encompasses all the things a homeowner needs to do to ensure their house is running smoothly and in good condition. Home maintenance is often divided into two categories: yearly maintenance costs and long-term repairs or replacement costs. The former refers to general upkeep like changing the air filters, cleaning the gutters, or taking care of the lawn, while the latter refers to longer-term, once-per-decade-type projects, such as replacing the roof or purchasing a new HVAC unit. Keep reading for a more detailed breakdown of some of the home maintenance costs associated with homeownership:

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Exterior costs

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  • Cleaning the gutters/eavestroughs 
  • Lawn care and gardening
  • Roof care
  • Snow removal during the winter 
  • Window washing
  • Opening/closing pool (if applicable) 

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Interior costs

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  • HVAC inspections and maintenance 
  • Testing and replacing batteries in smoke and carbon monoxide detectors
  • Cleaning counters/tiles/floors
  • Cleaning the range hood filter
  • Replacing the air filters
  • General housekeeping 

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It’s worth noting that some of these exterior and interior home maintenance tasks can be performed by the homeowner, and therefore may not be very expensive or take much out of your overall budget. As a homeowner, it is your job to decide which tasks to handle yourself and when you want to hire someone.

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Calculating Annual Maintenance Costs

The cost of home maintenance ultimately varies as it depends on several factors, like the size, age, and condition of your home. However, there are a few ways you can calculate the estimated cost of home maintenance when you buy a house to ensure you’ve budgeted correctly. 

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The 1% rule

The first way to calculate the cost of home maintenance is using the 1% rule. This simple rule states that homeowners should set aside approximately 1% of the home’s purchase price each year for maintenance. Using this rule, if you paid $1 million for a house in Toronto, your annual home maintenance budget should be $10,000. The only problem with this rule is that depending on the home, 1% might be on the low end. Some experts recommend budgeting as much as 3% or even 5% per year, which can add up to a lot more. If your house is particularly old or prone to problems, you may wish to allocate more than 1% to home maintenance. In that case, using one of the other cost estimation methods below might be more useful.

“Home maintenance is a term that encompasses all the things a homeowner needs to do to ensure their house is running smoothly and in good condition. Home maintenance is often divided into two categories: yearly maintenance costs and long-term repairs or replacement costs.”

Square footage rule

Another way to calculate the estimated cost of home maintenance is using the square footage rule, whereby homeowners allocate $1 per square foot of their home to annual maintenance and repairs. The square footage rule is best designed for newer homes as it doesn’t take into account other factors like age or location. That said, the size of a home is one of the most important factors in determining home maintenance costs so it can still be a worthwhile method.

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A personalized approach

One final method for calculating home maintenance costs is to take a personalized approach in which you assess your individual property and come up with a maintenance schedule. Start by considering the age of major components, such as the roof, foundation, HVAC units, kitchen appliances, electrical system, and plumbing system. Next, research replacement costs for each of these projects and create a rough timeline. Lastly, estimate the monthly cost of regular upkeep, such as lawn care or cleaning the gutters. These numbers will give you a realistic estimate of annual home maintenance costs, as well as longer-term expenses. 

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The Benefits of Home Maintenance

Maintaining your home has so many benefits. We outline a few advantages of regular home maintenance below. 

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Home maintenance can save you money

One of the main benefits of regular home maintenance is that it can save you money. While many homeowners are more focused on the cost of home maintenance, they often forget that they are likely to earn this money back and then some owing to the maintenance work they did. Experts claim that for every $1 spent on maintenance, roughly $100 is saved in future repairs. Consider the following example: As you’re cleaning the gutters, you find a small hole in your roof. You call a roofing contractor and have them patch the hole for a couple of hundred dollars. This relatively small, inexpensive task repairs the roof and prevents its deterioration by several years. Had you left the hole, the odds of it getting bigger and causing major water damage to your home (damage that would have cost you thousands rather than hundreds to fix) may become your reality. 

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Home maintenance can extend the lifespan of your appliances

Another benefit of home maintenance is that it can extend the life of your home appliances, including your laundry machines, dishwasher, and refrigerator. Simple tasks like changing the range hood filter on the oven, will instantly increase the lifespan of your appliances and keep them running smoothly and efficiently.

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Home maintenance can boost home value

Want to boost the value of your home? Maintenance is key. A well-maintained home with a clear and detailed history of repairs and improvements can increase resale value. You would be surprised what prospective buyers take note of. From curb appeal to updated appliances or a fresh coat of paint, buyers generally prefer to purchase homes that do not require major repairs. In contrast, if you fail to maintain your home, not only is it likely to be visible but a home inspection report will reveal its shortcomings. This can make it harder to sell your home and can lead to potential buyers offering less money. 

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Home maintenance can increase home safety and security

Experts suggest that well-maintained homes are generally safer, which is yet another benefit of home maintenance. By ensuring your home is regularly maintained, you minimize the risks of fires, carbon monoxide poisoning, and even theft. For example, testing your smoke alarms and replacing the batteries saves lives. In addition, if you maintain the exterior of your home, such as your yard, burglars might be less likely to target you. Overgrown lawns and bushes or unshovelled snow might make it look like no one is home, or at the very least, make it easier for a burglar to enter your home without being seen by neighbours, all of which can increase the risk of theft.  

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Three Tips to Save Money on Home Maintenance Costs

Want to save money on home maintenance? The experts at Wahi have put together a few tips to help you spend less on both exterior and interior home maintenance. 

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1. Take a DIY approach

The first step? Do it yourself! If you want to save big on home maintenance costs, take on as many tasks as you can. For simple fixes like repainting, mowing the lawn, gardening, or shovelling snow in the driveway, doing this yourself can save you a lot of money. That said, do not take on a more complex task, such as plumbing or electrical. Without the necessary skills and expertise, doing so might not only be dangerous but can lead to more expensive issues in the future. 

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2. Preventative maintenance is your friend

Too often, homeowners neglect regular maintenance of their homes because they think it’s a waste of time and money. Instead, they prefer to deal with problems as they arise. The issue with this approach is that by neglecting preventative maintenance, you increase the odds that a problem is going to occur, and when it does, there’s also a better chance that the problem will be more serious. For this reason, we recommend prioritizing preventative maintenance in all areas of your home. For example, you can prevent water damage to your home by dealing with leaks, clogs, or cracks as they happen. Other preventative home maintenance tasks may include taking care of pests as soon as you see them, painting the home’s exterior, and replacing smoke and carbon monoxide alarm batteries.  

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3. Minimize energy usage

Another tip for saving money on home maintenance is to minimize your energy usage. There are several home maintenance tasks that can also reduce how much energy your house consumes, saving you money on your monthly utility bills. For example, did you know that changing your air filter regularly or investing in a smart programmable thermostat can reduce your energy bills? 

Frequently Asked Questions

Will older houses cost more per year to maintain?

Generally speaking, yes, older homes will cost more money to maintain per year than newer homes. They are also more likely to require maintenance sooner after moving in than newer homes. Even if the home has been well-maintained, age is a major factor in determining home maintenance costs. Therefore, to ensure you can afford the maintenance of the home, be sure to do a thorough home inspection before the purchase is complete. The home inspection can inform you of any major issues so you can budget accordingly. 

What happens if you do not maintain your house for several years?

Failing to maintain your house for several years can have serious consequences. Depending on the original condition of the home, not maintaining it can lead to major problems that are far more expensive to fix than they would have been if they were addressed earlier. Possible consequences include water damage, pest infestations, structural or roof problems, frozen pipes, and a shortened lifespan for your HVAC units. 

Can you forgo yearly maintenance for newly built houses?

Newly built homes may not require maintenance as soon after moving in as older homes. However, forgoing yearly maintenance is still not recommended. As mentioned above, preventative maintenance is an important part of home maintenance. Therefore, to prevent problems down the line, it is recommended that you still carry out basic maintenance tasks, such as HVAC inspections, lawn care, gutter cleaning, and more. That said, the annual cost of home maintenance for newer homes may be less than for older homes, especially in the first few years.

Emily Southey

Wahi Writer

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