This article will explain why Mintek’s Transcendent makes a good Enterprise Asset Management (EAM) for Property Managers and HOAs.
Preventive Maintenance and Reserve Studies
A Reserve Study is a report property managers, HOAss and others use to evaluate the long term capital requirements of a managed property. The two major components of a Reserve Study are an inventory listing of all assets and a capital planning report. The accuracy of the capital planningreport is highly dependent on proper preventive maintenance being done on a timely basis.
“A reserve study is a budgeting guide which provides a detailed inventory of all the common element components with (usually) 2-30 year useful lives that will need to be repaired or replaced. The reserve study determines the remaining life of each item, the cost to repair or replace it and calculates the annual contribution required to adequately fund each item. If an adequate funding plan is followed, special assessments will be unnecessary.”
Ernest Lahti writing for APRA Newsletter Sept-Oct 2009
Preventive maintenance helps ensure the assets obtain their desired useful lifespan thus decreasing the chance of early major replacement costs.
How to use a Reserve Study for Preventive Maintenance
Reserve Studies provide the base asset data of the property when a complete and detailed listing of the assets of the property is done. This include such items as roofs, sidewalks, fitness facilities, pools and associated equipment. The great news is this data can be imported into a SaaS program to computerize the asset management function as well as schedule work request, inspections. All collected data can then be viewed 24/7/365 via the web. The result is lower labor costs, increased efficiency and a more accurate capital planning report.
Real Life Example
While touring an apartment complex, a potential tenant noticed several exterior walls were damaged leaving the damaged area exposed to the elements. The property manager said they never noticed it before as inspections and preventive maintenance were on an as needed basis. It turned out the damaged area (which was not in plain sight) had been exposed for so long the interior structure now had water damage resulting in the complete refurbishing of several apartments at a cost of over $30,000. The tenant choose to live elsewhere
Don’t let this happen to your condos, apartments or other managed property. Invest in a little bit of preventive maintenance today.