It's essential to hire experts who can develop viable budgets and timelines and administer well-planned projects.
Building owners, managers, and boards of directors have traditionally looked at repairs and improvements as a means of securing high market value for their properties. A new roof or windows, restoring decorative exterior elements, upgrading the elevator, redesigning the lobby—all are projects that will improve a building's appeal and often its operating efficiency.
When the residential real estate market is booming, owners are strongly tempted to rush capital improvement projects through to maintain property values and rents. And in a down market, owners may look for ways to cut corners on restoration and upgrade projects to save on construction costs. But executing an effective capital improvements strategy is best served with long-range planning and budgeting that takes preventive maintenance and repairs into account regardless of market conditions.
Deadline Dash
The need for long-term planning is commonly seen in the last-minute rush to meet deadlines for facade inspections mandated every five years by New York City Local Law 11/98. Each inspection cycle, there is a well-publicized deadline for filing the facade inspection report. Yet each cycle, many owners and managers scramble to hire architects, engineers, and contractors (all of whom are in high demand at the time) in a mad dash to complete Local Law 11/98 repair programs so the facade inspection reports can be filed on time with a "Safe" status.
Major capital improvements
are best served by looking
at the big picture of
your building’s needs.
As a result, owners face higher repair costs as well as fees and penalties if they cannot meet the filing deadline. In desperation, many property owners turn to unlicensed and unqualified contractors to perform rush repairs. In addition, owners and property managers who did not anticipate the costs of Local Law 11/98 repairs may need to forego other planned restoration and renovation projects so they can absorb the cost of mandatory facade and roofing repairs.
Of course, it's not what you know but what you don't know that comes back to haunt you. Building owners need to look at the big picture of ongoing maintenance and repair when planning to undertake major capital improvements. That makes it all the more important to hire experts with the technical knowledge to get the job done right.
It's essential to develop an ongoing relationship with an engineering or architectural firm that is in synch with the owner's long-range vision, has the expertise to develop viable budgets and timelines, and can professionally administer every aspect of a well-planned capital improvements program. The result will be owners, residents, and shareholders happy with their building's appearance and operation—as well as its long-term value.
This article was originally published in the February 23, 2000 issue of Real Estate Weekly.
