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Real Estate News and Advice |
October 10, 2008 |
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Building Value by Preventive Maintenance
by Richard Thompson
Many community associations are growing old...and not always gracefully. Dry rot, extensive woodboring insect damage, leaking roofs and hefty special assessments seem to be the order of the day. Letting maintenance slide year after year is not the answer. Owner's property in associations that are well maintained will sell faster and for more money. It is a matter of protecting and maintaining the value of the asset, a Board's primary and legal responsibility. So how can those associations that want to maintain their assets do so with a minimal amount of funds and energy? There are several "keys" which may assist in the maintenance journey: Get Committed. The Board needs to first go on record that it is committed philosophically to preventative maintenance. Consider enacting a formal written resolution approved by the Board that mandates professional quality maintenance of the property as a foundation of this commitment. As boards change, they will be held to this standard. Get Organized. Find volunteers for a Maintenance Committee. If any of have experience in construction, design, or architecture, so much the better. Next, put together a job description for the Committee outlining the major responsibilities and time lines for completion of certain tasks. Develop a Component List Besides the obvious like roofs, paint, paving, etc., there may be other not-so-obvious components. Review your documents to identify all the components that the Association is obligated to maintain. If there is confusion regarding maintenance responsibility for "limited" common areas like a unit's deck, you may wish to consult your attorney. If your community is older, you may want to do this anyway to make sure the documents conform to current laws. Amending them will clarify maintenance responsibilities that are vague or absent. Your insurance agent needs to know which components the Association will be taking responsibility for and how that might affect coverage and premiums. (Insurance coverage disputes between association and homeowners are common because of poorly written documents and failure by the Board to properly define responsibility). The key is to bring clarity and distinction to those components which will be maintained by the Association, as opposed to those maintained by the homeowners themselves. Physically Inspect the Components Many owners have never taken the time to walk around the property on a "maintenance inspection" and those that do often do not possess the proper skills. Choose the people carefully that will perform this duty. In addition, include reputable, licensed and qualified contractors, engineer or architectural consultants, or certified building inspectors. These people have a trained eye which will pick up potential problems that laymen would miss. Although they may charge for their time, they will save money in the long run. Once you have completed your walk-through, categorize all components in the following manner:
Develop a Maintenance Plan Define the guideline for maintenance of each component assuring "professional" lasting repairs. Avoid the "band-aid" mentality...it will cost you dearly. Use your service providers to determine reasonable methods and costs. Allocate the Funds The best maintenance plan in the world is useless if not properly funded. Since money comes from the operating budget and increasing the maintenance budget is not popular, it is critical to have the plan that justifies the budget. Build the budget around the maintenance program, not vice versa. Follow-up on the Work Have the Maintenance Committee or property manager do monthly (at least quarterly) inspections and put the observations in writing for the file. The report can be used as a checklist for the maintenance or landscaping people doing corrective work. Build Service Continuity Establish long term relationships with reputable service providers for continuity. Once a provider understands and provides the service you are looking for, why reinvent the wheel every time the Board changes? Check each vendor's costs at budget time to confirm that the association is getting a competitive price. If a preventive maintenance program is implemented, the Association can not only help protect itself from unscheduled special assessments, but will enhance the unit values as well. The purpose of preventive maintenance is to spend some money now to save a lot later. It is a legacy deeply appreciated by those that follow. For more information on this subject, see www.Regenesis.net. Published: July 12, 1999 Use of this article without permission is a violation of federal copyright laws. Related Articles:
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