Ensuring a safe, functional, and attractive property for condo residents is part of the job description for condo board members. Not only is maintenance essential for safety, but it also can reduce large one-time expenditures that can otherwise take a big chunk out of your reserves budget. Moreover, it helps maintain (and increase) property values.
The Problem with Deferred Maintenance
Condo buildings require ongoing maintenance. There’s just no getting around it. Unfortunately, a little delay here and some neglect there can all add up to major problems for your association. Tiny leaks or small cracks might not seem like a big deal, but putting off maintenance projects can lead to much more expensive repairs down the road – and sometimes those repairs might lead to special assessments.
No condo property owner wants to get stuck with expenses that could have been prevented. Not to mention, neglected maintenance can significantly hurt your condo building’s property value. Stay on top of maintenance and be sure to have enough money in your reserves for capital improvement projects.
Including Maintenance in Your Operating Budget
Operating expenses remain relatively predictable, and while unexpected maintenance issues can certainly creep up, they are generally considered to be regular expenses that are budgeted for and paid out of the association’s operating budget. As you plan for the next year, look to past expenses as a way to predict future costs. Keep in mind that you should expect them to increase annually.
To relieve some of the stress related to budget planning for maintenance expenses, consider working with a condo association management company. For help here in the greater Chicago area, contact our team at First Community Management.