As the name suggests, maintenance expenses are the amount you pay to keep your property, assets, and other equipment in a good condition. You might incur these expenses for the maintenance and repair of your goods, such as fixing your car’s engine to improve fuel Efficiency or installing the anti-virus program on your computer to prevent virus attacks.
These are considered as the additional expenses that you are going to incur to keep your assets in a working condition. It must not be confused with the actual or purchase price of the product.
Almost all types of assets need maintenance expenses at some point. If you plan on using the product for years, then you are going to have to pay the maintenance expenses for regular repairs and servicing. The total cost you will incur for the maintenance depends largely on the maintenance the particular asset requires and how often it needs maintenance. For example, if you are running a business, then expect to incur the maintenance cost for your office tools, machinery, furniture, vehicles, and other equipment.
For individuals, home appliances and electronics might require maintenance expenses every now and then. Maintenance expenses can save your money in the long run. When your assets are serviced and maintained regularly, there is a low chance they will deteriorate or need expensive repair and servicing.
If you delay the maintenance until the asset starts to deteriorate or show the signs of wear and tear, then you might end up paying a lot more than what’s required. If you don’t spend on the maintenance of the asset, then you may have to replace it. This can turn out to be ridiculously expensive. From vehicles to property, all assets involve maintenance expenses.
Maintenance expenses depend on the products you own and how frequently they need servicing. For homeowners, roof and electronic appliances are the common areas that need regular maintenance. Worn-out appliances can also incur additional expenses. Let’s see the common types of maintenance expenses.
Talk to our investment specialist
Note that the maintenance expense for the rental property is the responsibility of the landowner. The Landlord has to pay for the damaged roof, trash pickup, lawn care, and other such maintenance requirements. If the landowner sells a furnished apartment, then the cost incurred for furniture replacement and repairing will be paid by the landlord.
Similarly, all the cleaning and maintenance requirements of the property will be the landowner’s responsibility. Some property upkeep and repairing requirements are to be met by the tenant. Usually, the maintenance expenses are mentioned in the rental contract.
If you own an apartment or a condo, then you will have to pay the condo fee that varies from Rs. 7,362 to Rs. 73,625. The total condo fee you incur on the property depends mainly on the location of the home and its furnishing. It could be higher if you have a swimming pool, tennis court, and a functional patio.