Multi Family Maintenance
What do people currently budget for maintenance of an investment property in Brooklyn? This would be separate than the management fee. Obviously this is wildly variable, but I’m just trying to get an idea for routine repairs, etc. nothing big. The building is from 1930s, and about 3500 square feet.
What do people currently budget for maintenance of an investment property in Brooklyn? This would be separate than the management fee. Obviously this is wildly variable, but I’m just trying to get an idea for routine repairs, etc. nothing big. The building is from 1930s, and about 3500 square feet.
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I take care of my own building, trash, sweeping, etc. So for me it costs the trash bags and rock salt in the winter, and a handful of light bulbs throughout the year.
I also help my family with their buildings as well in the same fashion.
For us we can handle the day to day basic stuff and we have a few trusted contractors/painters/plumbers/etc that we can use when required.
Saves a ton of money doing it yourself, if you’re up for it, instead of paying a management company.
That’s helpful, thank you. I’m mostly trying to get an idea of what all the assorted costs that I have to think about are, and comparing management vs. other solutions.
Why the need for a management company? What does the management fee cover? Does that cover day to day stuff or just rent collections and a point of contact?
Day-to-day stuff would be:
trash bags, brooms and shovels for sweeping (+ someone to sweep/shovel), lightbulbs for the halls, etc. Pretty cheap overall, depending on # of tenants maybe $100-300 a month in trash bags and someone to take it out as well as sweep/shovel as necessary (unless of course you plan to do this yourself).
Routine repairs are a bit hard to “budget” since nothing is really “routine”. I would say $5-10k in cash as a reserve fund is wise.
For example:
We needed to replace all our windows. That was right around $20,000. We shouldn’t have to spend that again for 20+ years. Our roof has about 3 years left in it. We are slowly building up a “roof fund” of about $15k so we don’t drain our cash when the time comes to replace it.
Our boiler & water heater are 2 years old, so those shouldn’t cost us anything aside from $150 or so a year in maintenance.
There is nothing that seems like it will need repairing any time soon. That being said, things always pop up unexpectedly, which is why we try to keep $5-10k available to those unforeseen issues…