Deferred Maintenance

Deferred maintenance refers to necessary maintenance, repairs and upgrades or replacements that are put on hold until some time in the future. Maintenance and repairs may be postponed for a number of reasons, but the most common cause is the lack of necessary funds needed to complete a project. Ironically, the result of deferred maintenance is usually more costly than if the projects are not postponed. Maintenance can also be deferred due to the lack of manpower, available resources and many other reasons. Some repairs and upgrades that should be made on a property may be significantly more minor than the roof example above. In any case, however, deferred maintenance almost always leads to a loss in cash flow. The best way to avoid these problems is to ensure that the cost of preventative maintenance and capital improvements are worked into the budget.