The True Cost of Homeownership: Why Maintaining Your Assets Matters

Brooke Williams -

Owning a home is a significant milestone, a source of pride, and for many, their largest financial investment. But with ownership comes responsibility—responsibility to maintain the property and all the assets within it. From the structure itself to the appliances, fixtures, and fittings, every component of your home requires care. Neglecting this care can lead to "deferred maintenance liability," increased costs, and depreciation of your property value.

Let’s explore the importance of maintaining your home's assets, the concept of Return on Maintenance Investment (RoMI), and why staying on top of upkeep costs is essential for your finances and peace of mind.

What Are Home Assets?

Home assets are all the physical components that make up your property. These include:

  • Structural elements like the roof, walls, and foundation.
  • Appliances such as dishwashers, washing machines, and boilers.
  • Fixtures and fittings including faucets, light fittings, and cabinets.
  • Major systems like plumbing, electrical wiring, and HVAC units.

Each of these assets has a lifespan and a set of maintenance requirements. Proper upkeep ensures they perform optimally, avoid premature failure, and extend their usable life.

Understanding Upkeep Costs

Upkeep costs refer to the money spent on maintaining and servicing your home assets to keep them in good working order. This includes regular cleaning, inspections, repairs, and any replacements of parts. These costs are often perceived as an inconvenience, but they are vital to preserving the value of your property and avoiding larger expenses down the line.

For instance:

  • A £100 annual gutter cleaning bill can prevent a £10,000 water damage repair.
  • Servicing your boiler regularly for £80–£100 can save you from an emergency replacement costing £3,000 or more.

These small, routine expenses are far more manageable than the larger costs associated with deferred maintenance.

Deferred Maintenance Liability: The Hidden Cost of Neglect

When maintenance is delayed or ignored, it creates a deferred maintenance liability—the cost of catching up on neglected upkeep. This liability grows over time as minor issues worsen, eventually requiring more extensive and expensive interventions.

For example:

  • A leaky tap left unrepaired might only cost £50 to fix initially, but over months or years, it could lead to water damage requiring hundreds of pounds to address.
  • Ignoring roof inspections could mean overlooking a minor issue that escalates into a full roof replacement costing tens of thousands.

Deferred maintenance not only impacts your wallet but also affects the value of your property. Homes with visible neglect or deferred maintenance are less appealing to buyers and often sell for less, reflecting the cost and risk of repairs.

The Return on Maintenance Investment (RoMI)

RoMI quantifies the financial return you receive from investing in the maintenance of your home assets. By calculating the cost of maintaining an asset against the value it retains or enhances, homeowners can make informed decisions about their upkeep priorities.

For instance:

  • Regularly maintaining your HVAC system might cost £150 annually, but it could extend the system’s life by 5–10 years, saving thousands in replacement costs.
  • Painting the exterior of your home every 5 years might cost £2,000, but it prevents structural damage and boosts curb appeal, adding £5,000–£10,000 to your home's value.

By investing in maintenance, homeowners not only avoid higher costs but also protect their property's market value and minimise depreciation.

Home Value and Depreciation

Deferred maintenance accelerates the depreciation of your home. Depreciation is the loss of value over time, often caused by wear and tear, neglect, or outdated features. Maintaining your property and its assets slows depreciation and ensures your home retains its value.

For example:

  • A home with a well-maintained roof, modern appliances, and functioning fixtures will appraise higher than one with visible damage or ageing systems.
  • Neglected properties often require significant investment to make them market-ready, which buyers will factor into their offers.

Proactive maintenance is a key driver in preserving and even increasing your home's value.

A Worked Example: The Dishwasher Dilemma

Let’s illustrate these concepts with a practical example—maintaining a dishwasher.

Scenario 1: Proactive Maintenance

You follow the manufacturer's guidelines, spending:

  • £10 every 3 months on a descaling solution to clean the dishwasher.
  • £50 annually on a professional inspection and servicing.

Over 5 years, you spend £250 on maintenance. This proactive approach ensures:

  • Your dishwasher operates efficiently, using less water and energy.
  • It lasts 10 years, delaying replacement costs.

Scenario 2: Deferred Maintenance

You skip routine cleaning and servicing. Over time:

  • Limescale builds up, causing the dishwasher to work harder and increasing energy bills.
  • A clogged filter damages the motor, requiring a repair costing £200.

Eventually, the lack of care shortens the dishwasher’s life to 5 years, forcing you to replace it for £600.

The RoMI

In the proactive scenario, you spent £250 over 5 years to extend the life of your dishwasher to 10 years. In the deferred maintenance scenario, you spent £800 (£200 repair + £600 replacement) for a new dishwasher after 5 years.

Proactive maintenance saved you £550 over 10 years and avoided unnecessary stress. The Return on Maintenance Investment is clear—small, regular upkeep is far more cost-effective than delaying action.

The Ripple Effect of Maintenance Neglect

Deferred maintenance doesn't just affect the individual asset; it can have a ripple effect throughout your home. For example:

  • An unmaintained boiler can lead to leaks, causing water damage to walls, floors, and nearby appliances.
  • Faulty electrical wiring increases the risk of fire, endangering your home and family.

Neglecting one asset can compound costs and risks, further underscoring the importance of consistent upkeep.

Tips for Staying on Top of Maintenance

  1. Use Planna to Create a upkeep plans for your assets
  2. Budget for Upkeep: Allocate a portion of your annual budget for maintenance costs to avoid financial surprises.
  3. Prioritise High-Value Assets: Focus on assets with significant repair or replacement costs, such as your roof, boiler, and HVAC system.
  4. Document Maintenance: Keep records of all work done to demonstrate the condition of your home to future buyers.

Maintaining the assets in your home is not just about avoiding breakdowns; it’s about preserving your investment, protecting your property value, and saving money in the long run.

Upkeep costs are a small price to pay compared to the escalating costs of deferred maintenance liability. By understanding the Return on Maintenance Investment and prioritising proactive care, homeowners can enjoy a well-functioning, valuable, and stress-free home.

Remember, a stitch in time saves nine—or, in the case of your home, thousands of pounds. Start your maintenance journey today, and future-you will thank you.