As a property owner, you know you will periodically have to replace or upgrade components in or around your vacation units.
No one wants to be surprised by this cost, so it’s important to have a strategy that allows you to set aside money when you don’t need it so it’s there when you do.
The best way to approach this is to a) take inventory yourself and b) take into account any suggestions that come out of your inspections.
Make a list of common replacements and repairs, rate of occurrence, and estimated cost. Items that frequently come up on inspections include:
Small and Major Appliances
Heating and Cooling Units
Owners may want to update their décor periodically as well.
Emily C., Global Connections Operations Director, says you should figure you’ll need to replace things like mattresses and couches every five years. Major appliances may have a longer life, but some will get more wear and tear than others.
“You’re basically giving a five-year lifespan to non-capital improvements, then making a plan for what you’ll replace when,” Emily explained. “Maybe it’s the couch this year and the carpet next year.”
Inspections will yield suggestions as well. Your inspector may notify you of several things that need to be replaced in the near future. Add those to your list so you can plan accordingly.
Emily also notes that when it comes to repairs, a replacement may be cheaper, and Global Connections can help. “We can use our connections to help owners find best-price deals on appliances or other items they may want to replace.”
The lesson in reserves is simply to be prepared! The more you can predict what’s coming and set aside funds accordingly, the less likely you’ll be to have any financial surprises.