What is deferred Maintenance?
Deferred maintenance is the practice of postponing maintenance activities such as repairs on both real property (i.e. infrastructure) and personal property (i.e. machinery) in order to save costs, meet budget funding levels, or realign available budget monies. The failure to perform needed repairs could lead to asset deterioration and ultimately asset impairment. Generally, a policy of continued deferred maintenance may result in higher costs, asset failure, and in some cases, health and safety implications.
Does Differed Maintenance and/or lack of Preventative Maintenance actually cost more money in the long run?
Every dollar deferred in maintenance costs $4 of capital renewal needs in the future. Moreover, less preventative maintenance on systems shortens their life cycle by as much as one-third. With that said, owners cannot afford not to properly maintain their properties. Regardless of the initial upfront costs, it will always cost more in the long run!
The greater issue with deferred maintenance is that it only grows in scope — and cost — the longer it is prolonged. When a repair is delayed, it is still subject to the daily use and abuse of tenants. In fact, it’s not uncommon for a “repair” to turn into a “replacement” because, in the process of being deferred, it becomes completely broken. Replacing a door, lock, window, etc., is much more costly than simply repairing it in a timely manner. But not only is the hard expense higher, there is also a frequently overlooked cost in vendor productivity as replacements typically take much longer to complete than repairs.
Stress less with proper maintenance and preventative maintenance!
When one thing needs to be repaired or replaced, it brings a wave of anxiety and dread about what will need to be repaired or replaced. Taking a proactive approach to maintenance can save not just money but time and anxiety, as well.