HOA maintenance and capital improvement are two terms that are sometimes used interchangeably, yet they are actually different. Understandably, these two terms deal with community assets, and that could explain the confusion. It is important to know that capital improvements and HOA maintenance are different.
In this article, we intend to provide an in-depth explanation that can help solve the confusion about HOA maintenance vs. capital improvements.
What Is HOA Maintenance?
HOA maintenance entails all activities carried out by the HOA in common areas, such as repairs or replacements. Common areas in an HOA include sidewalks, amenities, and landscaping. Depending on the HOA, maintenance can include assessing, inspecting, preventing, repairing, and fixing damages in common areas.
Often, HOA maintenance comes with a cost for completing these regular repairs or replacements of existing assets. A decision to carry out preventive maintenance on current assets restores them to their original condition. It also means getting an asset to work according to its specific standards or restoring current assets to prevent further damage and let them reach their expected lifespan.
What Is Capital Improvement?
Capital improvement is a term used to describe permanent improvements or alterations made to a property with the goal of raising its value. Like HOA maintenance, capital improvement is done for many reasons, including extending the life of the property or improving its usefulness by adding to the needs the property can meet. In addition, capital improvements come at a cost, which is an expense that will eventually add to the overall value of your property.
Even though HOA maintenance improves the overall function of your property, capital improvement projects boost the condition of the asset beyond its current usefulness. Ultimately, capital improvements are made to extend the property’s useful life while enhancing the quality of the services it provides for homeowners.
HOA Maintenance vs. Capital Improvements
Understanding HOA maintenance vs. capital improvements involves recognizing their differences. The most noticeable difference between HOA maintenance and capital improvements is the result of each undertaking. HOA maintenance restores a current asset to its original and functional state, while capital investment improves the usefulness of a current asset.
In addition, HOA maintenance is less costly as it does not involve major changes but only repairs or maintenance. On the other hand, capital investment is capital intensive because it entails some form of construction, such as the construction of a basketball court.
Find a Balance Between HOA Maintenance and Capital Improvements
As an HOA manager, you aim to recommend improvements or maintenance projects that will add value to the property within the HOA community. Striking a balance between HOA maintenance and capital improvements is essential, and that is where we at Avid Contractors come in. Whether you need an experienced community association contractor in Miami or any other specialized service, we are here to help.
