As costs continue to rise and community associations experience tighter budgets, it may be appealing to defer maintenance. However, the long-term consequences of deferring regular maintenance tasks can be very costly for your homeowner's association (HOA). When HOAs delay repairs or postpone preventative maintenance, they may face greater expenses later on, which can compound into resident conflicts, declining property values, and legal liability.
Here we discuss how deferred maintenance can impact your HOA and why you should invest in regular upkeep to keep costs down.
What is Deferred Maintenance?
Deferred maintenance refers to the postponing of necessary repairs or upkeep of your HOA's common areas. Delaying these maintenance tasks may seem like it saves your community money, but in the long run, they may cause more problems than they solve.
For HOA Boards, deferred maintenance can be a symptom of poor budgeting or inadequate reserve funding. Thus, you will find yourself reacting to emergencies instead of preventing them, which will result in a significant amount of both time and money being wasted.
The Financial Costs of Deferred Maintenance
The financial impact of deferred maintenance extends far beyond the immediate cost of repairs. In fact, many hidden costs could significantly affect your HOA if you choose to delay preventative maintenance.
Here are a few of the most significant costs associated with deferred maintenance.
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Escalating repair costs.
Failing to address small problems around your HOA can cause those issues to worsen. What could have been a simple repair often becomes a major replacement project or emergency. For example, postponing minor pavement sealing can lead to complete asphalt replacement, resulting in a cost difference of tens of thousands of dollars.
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Decreased property values.
An HOA community that is not well-maintained will be less appealing to potential buyers. Peeling paint, damaged roofs, and aging amenities create a poor impression, which in turn lowers both homeowner satisfaction and property resale values.
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Higher emergency expenses.
Repairing something in an emergency will almost always cost more than preventing the emergency in the first place. Your Board may have to pay for expedited labor, premium materials, or after-hours service, none of which are budget-friendly. These unplanned costs can quickly strain an HOA's operating budget and reserve funds.
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Legal risks.
Deferred maintenance can also create liability risks for your HOA. For example, if a neglected sidewalk causes an injury or a deteriorating structure fails inspection, the HOA may face lawsuits or fines. Keeping up with regular maintenance is not just about community aesthetics; it is also a matter of safety and compliance.
While keeping up with all regular preventative maintenance tasks may seem overwhelming, you don't have to handle them alone. The expert community managers at Partners Community Management can help your Board develop a strategic plan that protects your community assets and prevents the hidden costs of deferred maintenance.
Contact Partners Community Management today and discover how we can help your HOA community remain in top condition.
