Defining terms for new folks: "Maintenance"

[Katherine Fusco]

I have a question about what all is included under the term "maintenance."

There are a few rules of thumb out there for estimating maintenance costs (e.g. 1% of property price/year, 10-15% of rent, $1/sqft/year, etc.).

My question is what falls into this category of “maintenance” and what should be accounted elsewhere in the budget? Is this just a category for all repair calls (HVAC, plumber, handyman) and nothing else? I have been given the sense that maintenance means things like routine repairs (new doorknob, broken light fixture, a stuck drain) routine preventative upkeep (winterizing, etc.),

Are landscaping/mowing costs included in these rules of thumb?

Snow removal?

Pest Control?

Trash/sewer/water costs?

Are tenant turnover costs (e.g. fresh paint) included?

I’ve seen these treated as both part of and additional to “maintenance” in different places. So, what’s maintenance?

[Ned Carey]

@Katherine Fusco It doesn't really matter. It is a decision of how much detail you want or need to run your business. I separate all the things you mentioned but I bet my accountant puts them all on one line.

An exception would be water/sewer costs. They would come under utilities.We separate Gas/electric and Water under utilities. Where I am the gas electric comes from the same supplier and the water comes from another supplier (the city). I would NOT combine water/sewer with trash. Again on the tax form my accountant would just combine all utilities one one line.