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Why Deferred Maintenance is a Costly Mistake: The Risks of Ignoring Repairs

When you hear about real estate, you might come across terms like "deferred maintenance." It sounds complicated, but it’s actually pretty simple.


Let’s break it down why deferred maintenance is a costly mistake the risks of ignoring repairs.


Deferred maintenance is a term used to describe repairs and maintenance tasks that a property owner has postponed or neglected. These are issues that, if not addressed, can become bigger problems over time. Think of it like putting off chores at home, if you don’t clean your room or fix that leaky faucet, it can lead to bigger messes or more expensive fixes later on.


Worker man replace tile of the old roof. Repair roof concept

Common Examples of Deferred Maintenance


  • Leaky Roofs: Ignoring a small leak can lead to major water damage.

  • Broken Windows: Cracks or broken windows can let in cold air and pests.

  • Old HVAC Systems: Not servicing your heating and cooling systems can lead to breakdowns.

  • Damaged Plumbing: Small leaks or clogs can turn into big plumbing issues.

  • Neglected Landscaping: Overgrown bushes or untrimmed trees can damage property structures.


Common Examples of Deferred Maintenance

Why is Deferred Maintenance a Big Deal?


Deferred maintenance can cause serious problems for homeowners, buyers, and sellers.


Here’s why it’s a big deal:


Costs More in the Long Run


When you ignore small issues, they can turn into major problems, costing a lot more to fix. For example, a small roof leak might cost $100 to repair now but could cause $5,000 worth of damage if ignored for a year.


Lowers Property Value


Properties with deferred maintenance are often worth less because they need a lot of repairs. Buyers might be scared off by the amount of work needed, and lenders might be hesitant to approve loans for such properties.


Safety Hazards


Some deferred maintenance issues can be dangerous. For example, faulty wiring or a broken staircase can be safety risks. It’s not just about money; it’s also about keeping people safe.


Real-Life Example: Sarah’s Rental Property


Let’s look at a real-life example to see how deferred maintenance works. Meet Sarah, a teenager who inherited an old house from her grandparents. Here’s what she discovers:


Locksmith Man Repairing

The House


Location: Suburban neighborhood

Age: 50 years old

Condition: Needs a lot of work


Sarah’s Discovery


  • Leaky Roof: There’s a small leak in the attic. Sarah’s grandfather had patched it up years ago, but now it’s getting worse.

  • Broken Windows: Several windows are cracked or broken, making the house drafty.

  • Old HVAC System: The heating and cooling system hasn’t been serviced in over a decade.

  • Plumbing Issues: Some pipes are rusty, and there’s a slow leak under the kitchen sink.

  • Overgrown Yard: The bushes and trees are taking over the yard, causing damage to the fence and driveway.


Sarah’s Plan


  • Get Quotes for Repairs: Sarah calls different contractors to get estimates for fixing the roof, replacing windows, servicing the HVAC system, and fixing the plumbing.

  • Budget for Repairs: She sets aside $10,000 for the repairs, knowing that fixing everything will cost a lot.

  • Prioritize Safety: Sarah decides to fix the plumbing and the roof first because they are safety issues. The other repairs can wait a bit.


Real-Life Example: Sarah’s Rental Property

Latest Statistics on Deferred Maintenance


Current Trends in 2024


  • Cost of Neglect: According to a 2024 report by the National Association of Home Builders, properties with deferred maintenance sell for 10-20% less than similar homes in good condition.

  • Common Issues: The most common deferred maintenance issues reported are roof leaks, HVAC problems, and plumbing leaks. These issues account for about 60% of all deferred maintenance problems.


Impact on Property Value


Studies show that homes with deferred maintenance can lose up to 25% of their value. This is because buyers are often scared off by the amount of work needed. In some cases, lenders may not approve loans for properties with significant deferred maintenance.


How to Spot Deferred Maintenance


Knowing how to spot deferred maintenance can help you decide whether a property is a good investment or if it’s a money pit. Here are some tips:


Check the Roof


Look for missing shingles, water stains in the attic, or signs of leaks on the ceiling. A roof in bad condition is a major red flag.


Look at the Windows


Check for cracks, broken panes, or foggy windows. Drafty windows can lead to high heating and cooling bills.


Inspect the HVAC System


Make sure the heating and cooling system is working properly. Look for signs of age, like rust or loud noises. A new system can be expensive, so factor this into your budget.


Examine the Plumbing


Check for leaks under sinks, rusty pipes, or water stains on walls and ceilings. Plumbing problems can cause major damage if not fixed.


Evaluate the Landscaping


Overgrown bushes or trees can cause damage to fences, driveways, and foundations. Make sure the yard is well-maintained.


Why You Should Care About Deferred Maintenance


Why You Should Care About Deferred Maintenance

Understanding deferred maintenance is important for anyone interested in real estate, whether you’re buying, selling, or just curious. Here’s why:


  • Save Money: Addressing issues early can save you thousands of dollars in the long run.

  • Increase Property Value: Keeping a property well-maintained can increase its value and make it more attractive to buyers.

  • Ensure Safety: Fixing safety issues like faulty wiring or leaks protects you and your tenants.


Tips for Dealing with Deferred Maintenance


If you own a property or are thinking about buying one, here are some tips to handle deferred maintenance:


Tips for Dealing with Deferred Maintenance

  • Regular Inspections: Schedule regular inspections to catch problems early. This can save you money and headaches later.

  • Prioritize Repairs: Focus on fixing the most critical issues first, like plumbing leaks and roof repairs.

  • Budget for Maintenance: Set aside money for regular maintenance to avoid big, unexpected costs.

  • Hire Professionals: Don’t try to fix everything yourself. Hire experienced contractors to ensure the work is done correctly.


 Whether you’re a seasoned real estate professional or just starting out, Upskillre offers various online courses tailored to enhance your skills and advance your career in the real estate industry.

Deferred maintenance is a common issue in real estate that can cost a lot if not addressed.


Whether you’re a homeowner, a future homebuyer, or just curious, understanding deferred maintenance can help you make smarter decisions. By keeping an eye on the condition of properties and addressing issues early, you can save money, increase property value, and ensure safety.


So, next time you look at a property, remember to check for those little problems that could turn into big headaches. Happy house hunting!

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