If something’s broken, you fix it. If it's worn out, you replace it. It sounds like a simple equation, but when it comes to construction in cash-strapped times, it can be a case of easier said than done.
As many condominiums’ fiscal situation remains unsure, some are looking at putting off scheduled maintenance projects until the economy improves. They are seeking to hold off that siding, roofing, decking, or paving project a year or so, when the condo will, hopefully, have some more money.
Deferred maintenance, as it is known in real estate, is not a strategy new to this recession. But, since by definition it means not fixing something that needs it, it is one that needs to be employed carefully, so that condos don’t find themselves dealing with litigation, declining property values, or health issues such as mold.
Also, some projects become exponentially more expensive if not handled in a timely fashion. That’s why it is vital that boards and associations get an expert opinion (which cannot be defined as a brother-in-law of a board member) on which projects can safely be postponed, and which need to be dealt with immediately – no matter how many zeroes are attached to the price tag.
This article will lay out some of the risks involved with deferred maintenance, as well as ways condominium associations can stretch their reserve fund dollars.