Your home renovation is going to have some unexpected hiccups. It doesn’t matter who you are or what type of property you’ve invested in, something is going to go wrong, or at least, something is going to cost you more money than you originally planned. You’re not unlucky — it happens to everyone.
Leave Room in Your Budget
The best way to avoid getting surprised by these additional costs is to leave wiggle room in your budget. When an unwanted expense pops up, you’ll be ready to respond and pay it off right away. Ideally, you should set aside some funds to pay for the following costs during the entire renovation:
- Water damage
- Utility bills
- Code violations
What happens if these unexpected expenses cost more than you bargained for? If it’s an emergency, an online line of credit lets you borrow cash to deal with unexpected costs during your renovation. An online line of credit may be a back-up plan if you find yourself in a tight spot — so long as you use it tackle unexpected emergency expenses and not takeout.
1. Water Damage
Water damage is an expensive problem, especially because it can incite other complications like indoor mold and pest infestations. The cost will depend on the extent of the damage and what type of water created it. Repairs for black water damage (sewer back-up) are going to be pricier than the repairs for a leaky bathroom sink.
2. Utility Bills
If you’re doing major renovations, the rates on your utility bills are going to spike to account for the additional use of water and electricity. When you’re living at home during the renovation, your bills are going to calculate your regular use of utilities, along with the use from contractors. Be prepared for bloated bills for a few months.
3. Code Violations
Building codes change over time. If you’re renovating an older home, you’re likely going to run into some code violations that need to be remedied as soon as possible. It could be faulty wiring found behind the walls or improper bathroom ventilation. Professional contractors won’t ignore these unsafe, outdated, and illegal features. They will have to change it and add it to your final costs.
You’re not going to be cooking a wholesome meal in your kitchen when it’s in the midst of a renovation. Your appliances aren’t there, and there’s dust everywhere. Trying to do anything more complicated than putting toast in a toaster will be a real hassle. That’s why lots of homeowners spend a surprising portion of their budget on fast food delivery.
When you’re planning a massive home reno, you need to set aside some money for these types of surprises. You can’t plan for every single penny to be put to use and leave no extra funds for emergencies. Being prepared for any hiccup will help you move forward and keep you from plunging into financial trouble.