Cyclical Maintenance and Capital Expenditure

Cyclical maintenance and capital expenditure are recurring expenses that property managers must account for in their long-term financial plans. Regular maintenance tasks, such as painting, roofing, and lift maintenance, should be scheduled and budgeted for over the life cycle of the property. Property managers should get a good understanding of the condition of a building and what works may be needed and when just from their site visits. However it is always prudent to seek professional expert help.

Chartered Building Surveyors should be employed to undertake a comprehensive capital expenditure (CAPEX) reports to assess the condition of building assets, forecast future maintenance needs, and plan expenditure in future years. This report should not just focus on the building structure and aesthetics, but also only any mechanical and electrical equipment – for buildings with large plant looking for a specialist M&E consultant may be prudent.

A full CAPEX plan allows you to adequately budget for the long-term. The report can be used as a positive communication tool with leaseholders and an aid in justifying reserve fund collection levels.