You\’ve budgeted for materials and labor, but renovation costs have a sneaky way of multiplying. Here are the hidden expenses that catch homeowners off guard.
The Domino Effect
You start by replacing the kitchen countertops, but now the old backsplash looks terrible next to them. So you replace the backsplash, which makes the cabinet hardware look dated. Before you know it, you\’ve updated the whole kitchen. Combat this by planning the entire scope upfront, even if you phase the work over time.
What\’s Behind the Walls
Opening up walls can reveal outdated wiring, old plumbing that needs replacement, mold, asbestos, or structural issues. Set aside 10-20% of your budget for these surprises. It\’s better to be pleasantly surprised than financially stressed.
Permit and Inspection Fees
Depending on your location and project scope, permits can cost anywhere from a few hundred to several thousand dollars. Don\’t skip them—unpermitted work can haunt you when selling your home.
Temporary Living Arrangements
Renovating your only kitchen or bathroom? You\’ll need alternatives. Whether it\’s eating out more, setting up a temporary kitchen, or even renting temporary housing for major projects, these costs add up.
Tool and Equipment Rental
Even if you hire contractors, you might need to rent a dumpster, scaffolding, or specialty equipment. These rentals can cost hundreds per week.
Protecting Your Belongings
Dust travels. Invest in quality drop cloths, plastic sheeting, and storage solutions to protect your furniture and belongings. You might even need to rent a storage unit for larger projects.
Increased Utility Bills
Expect your electricity usage to spike with power tools running all day. Water usage may increase too.
Smart Budget Breakdown
- Materials and labor: 60-70%
- Contingency for surprises: 15-20%
- Permits and fees: 5-10%
- Incidentals (temporary arrangements, equipment): 10-15%
Being financially prepared for these hidden costs means you can handle them calmly instead of scrambling for solutions mid-project.