Key Takeaways
- Preventive maintenance ($800-$1,500/yr) prevents $3K-$10K reactive repairs.
- Capex reserves ($200-$300/mo) fund predictable replacements.
- Build relationships with 2+ vendors per major trade.
- Proactive maintenance retains value and attracts quality tenants.
Systematic maintenance and capital planning are essential for long-term ownership.
Preventive Maintenance Schedule
Monthly: smoke/CO, HVAC filters, plumbing. Quarterly: exterior, sump pump. Semi-annually: HVAC service ($150-$300), gutters ($150-$250). Annually: foundation, caulking, water heater, electrical. Cost: $800-$1,500/year prevents $3,000-$10,000 in reactive repairs.
Capital Expenditure Reserve Planning
Roof: 20-30yr, $8K-$15K. HVAC: 15-20yr, $5K-$10K. Water heater: 10-15yr, $1K-$2.5K. Appliances: 10-15yr, $3K-$5K. Flooring: 10-20yr, $3K-$8K.
Vendor Network
Build relationships with 2+ vendors per trade. Vet for licensing, insurance, references. Negotiate HVAC maintenance agreements. Maintain preferred vendor list.
Key Takeaways
- ✓Preventive maintenance ($800-$1,500/yr) prevents $3K-$10K reactive repairs.
- ✓Capex reserves ($200-$300/mo) fund predictable replacements.
- ✓Build relationships with 2+ vendors per major trade.
- ✓Proactive maintenance retains value and attracts quality tenants.
Sources
- RSMeans/Gordian — Facilities Maintenance Cost Data(2025-01-15)
- NAA — Capital Expenditure Benchmarks(2025-01-15)
Common Mistakes to Avoid
Skipping preventive maintenance to save costs
Consequence: A $150 HVAC service prevents a $5,000-$10,000 replacement
Correction: Implement seasonal maintenance schedules for HVAC, plumbing, roofing.
Not building a CapEx reserve fund
Consequence: Roof replacement ($8K-$15K) requires emergency financing
Correction: Reserve $100-$200/month per unit in a dedicated CapEx account.
Test Your Knowledge
1.How often should HVAC systems be serviced?
2.What is a capital expenditure schedule?
3.What monthly reserve per unit covers CapEx?