Maintenance Expenses (Costs of Maintenance)

Maintenance expenses are the ongoing costs required to keep assets functioning and in good condition. They are incurred in addition to the purchase price and can apply to personal items (homes, cars, appliances, electronics) or business assets (vehicles, machinery, facilities, technology).

Why maintenance matters

Regular upkeep prevents minor issues from becoming major, more expensive repairs.
Neglecting maintenance can shorten an asset’s useful life and force replacement.
When buying an asset, total cost of ownership includes both the purchase price and expected maintenance expenses — failing to account for them can lead to financial strain.

Common types of maintenance expenses

Homes: lawn care, plumbing and electrical repairs, roof fixes, appliance replacement, and hazard insurance to protect against storms, fire, and other disasters.
Vehicles: routine services such as oil changes, tire rotation, brake service, and other preventive maintenance to avoid breakdowns and costly repairs.
Appliances and electronics: periodic servicing, software updates, part replacements, or professional repairs.
Businesses: upkeep of fixed assets (equipment, vehicles, facilities) and technology maintenance (software licenses, security updates, backups).
Condominiums: monthly condo or HOA fees cover shared building maintenance and amenities (security, pools, gyms, landscaping).

Landlords and tenants

Landlords are generally responsible for major maintenance and for meeting basic safety and habitability standards (heating, ventilation, structural integrity, common exterior maintenance).
Tenants usually handle minor, day-to-day tasks and any expenses specified in the rental agreement.
Rental contracts should clearly assign responsibilities to avoid disputes.

Budgeting and planning

Set aside a maintenance fund or include expected upkeep in monthly budgets.
Estimate recurring costs (insurance premiums, condo fees, scheduled servicing) and variable costs (repairs due to wear or unexpected failure).
Consider maintenance intensity when choosing between options — for example, a condo with a $600 monthly fee can significantly increase monthly housing costs compared with a similar mortgage without such fees.

Practical example

Owning a car requires routine maintenance (oil changes, tire care, filters). Skipping these can lead to expensive repairs or premature replacement, potentially forcing owners to take on repair loans or buy a new vehicle.

Key takeaways

Maintenance expenses are a necessary and ongoing part of asset ownership.
Regular maintenance lowers long-term costs and extends asset life.
Factor maintenance into purchase decisions and keep a dedicated fund for upkeep to avoid financial stress.