Even million-dollar mansions will show signs of wear and tear, which you will have to rectify in order to maintain your home’s comfortable, safe, and efficient condition. You’ll inevitably have to foot the bill for home maintenance and repairs, so it’s best to be prepared before that time comes. The last thing you want is to receive a five-figure invoice from your contractor and realize that you don’t have enough money to cover the costs!
While you may be able to afford routine maintenance and repairs, such as replacing the air filters on your HVAC, it’s crucial to set aside money for unplanned costs, too. What if strong winds tear your mansion’s roof off and you have to do a whole-roof replacement, which can cost as much as $80,000? What if you have to build a new bedroom to accommodate a new family member? This is precisely why it’s important to have a mansion maintenance and repair fund, even if you currently have a decent amount of money in your account.
Consider these top tips to maintain a reserve fund, allowing you to deal with whatever property-related concern comes your way.
1. Assess Your Mansion’s Condition
How much you’ll have to set aside for maintenance and repairs will depend largely on your property’s condition, particularly its age or year of construction. As a rule of thumb, the more recently a property was built, the lower its maintenance and repair costs will be. This is because newly built mansions are more likely to be made of more durable, long-lasting materials.
Property maintenance also plays an important role in determining how much you’ll have to spend. As an example, picture two properties—let’s call them Property One and Property Two— that are exactly the same in terms of structure, materials, etc. Property One’s owner hired a mansion maintenance firm to make sure it’s well-maintained, however, Property Two failed to stay on top of property upkeep. They failed to recaulk your windows for years, which means that water has likely seeped into the structure.
This would mean that Property Two’s repair costs would be much higher, as they would have to primarily deal with water damage—something that Property One’s owner managed to avoid through preventive maintenance.
As you can see, one of the best ways to keep your maintenance and repair costs low is by partnering with a property management company. They have the trained eye to spot potential issues with your property and address them before they become too costly to repair.
2. Build a Reserve Fund
One of the best ways to ensure that you’ll have money to use when it’s time to conduct mansion maintenance and repairs is to build a reserve. There are two main methods to calculate the best amount to set aside for home maintenance and repairs, but note that these aren’t hard-and-fast rules:
This rule suggests setting aside 1% of your mansion’s purchase price for maintenance costs. For example, if your mansion cost $1,000,000, then the minimum amount to set aside is $10,000. However, do note that this may not be the most reliable method as the overall cost will vary based on your home’s amenities.
Square Footage Rule.
Essentially, this rule states that you must set aside at least $1 per square foot. This means that if you own an 8,000-square-foot home, you may want to put $8,000 toward your maintenance fund. Do note that this may not be the best way to calculate it, as mansion maintenance and repairs will most probably cost more.
Ultimately, you must set aside an amount that works for your specific property. To fine-tune your calculation, consider working with a mansion management company in South Florida.
3. Consider Setting Up Automatic Transfers
Once you’ve decided on the ideal amount to set aside with the help of a property management company, you might want to set up a separate account solely for your maintenance and repair fund. That way, you can ensure that you have sufficient funds to use when the need arises.
If you were to keep all of your coins in your personal account, you may have a harder time keeping track of your finances. It’s also one way to avoid the temptation of using your money for other things unrelated to mansion maintenance.
4. Hire a Professional to Estimate Maintenance and Repair Costs
Mansions tend to be trickier to budget for because of their unique amenities and requirements. That’s why it pays to hire a professional, such as a property manager with a network of inspectors, to do a full walk-through of your mansion. They can accurately estimate when your property’s systems will need maintenance, and how much it will likely cost.
5. Plan Ahead for Maintenance and Repairs
Determining when you’ll most likely have to use your money for maintenance and repairs will give you enough time to set up your reserve fund. For example, roofs need to be replaced every 15 to 25 years, depending on their material and the conditions they’re exposed to. With this in mind, you’ll know that it would be wise to start budgeting for a whole-roof replacement at least 15 years ahead of time.
With the help of a property manager, create a comprehensive list of your property’s systems, amenities, etc., noting when they’ll need maintenance and repairs. Not only does this allow you to save enough money in time, but it also enables you to implement preventive measures to cut your maintenance and repair costs in the long run.
Hire a Mansion Management Company to Oversee Repairs
When you choose Luxury Property Care to be your partner in mansion management, we’ll oversee the whole process of maintenance and repairs. Not only will we provide you with an accurate cost estimate, but we’ll also coordinate with your contractors and ensure that the work is completed on time, every time. Plus, we’ll create a property maintenance plan, focusing on preventive maintenance to save you money in the long term.