How much should landlords earmark for maintenance?

Landlords should earmark a quarter of rental income for maintenance and repairs

As the Renters’ Rights Bill is passed into law, increasing the demands and expectations of landlords – not least when it comes to the proper upkeep of their properties – new research from Adiuvo, the UK’s leading provider of 24/7 property management support, reveals how much money landlords should be earmarking for repairs and maintenance each year.

Adiuvo has analysed ten of the most common repair and maintenance tasks faced by UK landlords to calculate the estimated annual maintenance bill for a rental property. This figure has then been compared with the average annual rental income to determine what proportion of a landlord’s earnings should be reserved to ensure sufficient funds are available for prompt and effective upkeep of their assets.

Some repairs and safety checks need to be carried out regularly – at least once a year – such as inspections of electrical and heating systems. Others, including boiler replacements, new carpets, or window repairs, tend to need attention less frequently. Adiuvo has accounted for these varying maintenance timelines when producing a clear estimate of the typical annual cost landlords should expect to budget for.

Regular maintenance jobs

Inspecting and replacing electrics in the home tends to be an annual job which costs, on average, £691 per year.

Heating systems are similar, with annual upkeep costs coming in around £680, while plumbing issues are likely to set a landlord back £632 a year.

Less frequent maintenance jobs

Boilers come to require replacement, on average, every two and a half years and cost an average of £714 which works out as an annual cost of £286.

Walls need repeating every two and a half years as well, at an average annual cost of £251.

Then there are the jobs that most rarely occur, but nonetheless need budgeting for each year.

Around once every three years, a landlord has to maintain or replace the roof (£313 per year), kitchen white goods (£279 per year), carpeting (£262 per year), windows (£234 per year), and locks/security (£203 per year).

All in all, the total annual maintenance fund that a landlord should be putting aside comes to £3,832. Some years, the actual bill will be less than this, but then others it will be more. So by setting this much aside each year, landlords can be sure that they’re covered whatever happens.

Costs as a percentage of rental income

The average UK rent currently stands at £1,354 per month, which means the average landlord is receiving total annual rental income of £16,248 per property.

As such, the maintenance fund of £3,832 is equivalent to 23.6% of rental income each year.

 

Colin Stokes, Founder and MD of Adiuvo, commented:

“As a landlord, property upkeep isn’t optional, it’s an essential part of protecting your investment and ensuring tenants remain safe and satisfied.

Our research shows that landlords should be setting aside almost a quarter of their annual rental income for maintenance and repairs. It’s money that will inevitably need to be spent, but acting promptly can prevent that figure from climbing even higher.

At Adiuvo, we handle maintenance issues 24 hours a day, seven days a week, so landlords never have to worry about problems being left to worsen overnight or over a weekend. Immediate action not only keeps properties in good condition but also helps landlords avoid unnecessary stress and far greater costs in the long run.”

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