HOA glossary · D
Deferred Maintenance
What is deferred maintenance in an HOA?
Deferred maintenance refers to necessary repairs that have been postponed due to budget constraints or other delays. These issues are often identified during reserve studies or property inspections and can build up quietly over time if not addressed.
Why is deferred maintenance important?
It can lead to higher costs later, lower property values, and greater risk of damage. Deferred maintenance can also distort reserve studies and force sudden special assessments, which may frustrate homeowners and strain board credibility.
How can you use “deferred maintenance” in a sentence?
The reserve study revealed that years of deferred maintenance on the building’s exterior would lead to more costs.
Related terms
- Reserve StudyA reserve study is a financial planning tool used by HOAs to estimate how much money should be set aside for future repairs and replacements.
- Capital ReservesCapital reserves are funds an HOA sets aside to pay for the replacement of key components of the property or repairs due to unexpected damage.
- HOA DuesHOA dues are regular payments homeowners make to maintain shared spaces, cover services, and fund the community’s operations.
- Operating BudgetAn HOA operating budget is the annual financial plan for covering the community's day-to-day operating costs.
