The true cost of neglect

Why preventive maintenance is crucial for New Zealand property owners

For New Zealand body corporate managers and unit owners, ensuring the long-term health of a building is crucial—not just for safety and comfort, but for the financial well-being of all stakeholders. One common pitfall of unit owners within a body corporate, is the temptation to delay or ignore preventive maintenance tasks. While it may seem like a good way to save money in the short term, neglecting maintenance often leads to much larger financial burdens. In this article, we’ll examine the financial implications of skipping preventive maintenance and highlight some real-world examples of costly repairs that could have been avoided simply by having an effective long term maintenance plan.

The financial cost of ignoring maintenance

In New Zealand, the proverb "a stitch in time saves nine" holds especially true for property maintenance. Failing to address small issues as they arise can quickly escalate into more serious and expensive problems. According to data from property management firms, buildings that neglect routine maintenance often face repair costs that can be four to five times higher than if they had maintained a regular schedule. Dealing with issues as they arise removes the luxury of time to shop around for competitive costings and contractors can inflate costs for work that is deemed urgent.

Hidden financial risks: Beyond repair bills

The financial cost of deferred maintenance goes beyond the obvious repair bills. For example:

1. Increased insurance premiums – Insurance companies in New Zealand may raise premiums or even deny coverage for buildings with a history of poor maintenance.
2. Loss of property value – Potential buyers and investors are quick to notice signs of neglect, and a poorly maintained property can reduce the overall value of the building and surrounding units.
3. Higher energy bills – HVAC, plumbing, and electrical systems that are not well-maintained are less efficient, leading to inflated energy costs.
4. Health and safety liabilities – Unattended issues such as mould growth, water damage, or deteriorating structures can lead to serious health risks and legal liabilities if tenants are harmed as a result of the neglect.

Real-world examples from New Zealand

The financial consequences of neglecting maintenance are significant, as seen in these real-world cases across New Zealand:

• Roof Failure in an Auckland Apartment Block: An Auckland body corporate deferred minor roof repairs for several years, assuming the leaks were manageable. However, after a series of heavy rains, the roof deteriorated to the point where it needed full replacement, costing over NZD $150,000 per owner. Proper maintenance could have avoided this expense, as regular roof inspections and minor repairs would have cost a fraction of that amount.
• Leaking Pipes in a Wellington High-Rise: A Wellington high-rise experienced frequent water pressure issues but deferred investigating the source. Eventually, significant water leaks were discovered, leading to major damage to multiple units and requiring extensive repairs. The total cost exceeded NZD $250,000, while early detection and repair could have limited this to under NZD $30,000.
• Earthquake Strengthening Delays in Christchurch: In post-earthquake Christchurch, many older buildings delayed structural assessments and strengthening, only to face higher costs later due to deterioration. One heritage building saw strengthening costs soar to NZD $500,000 after further damage, though initial assessments indicated that early intervention would have cost around NZD $150,000. Delays not only drove up repair costs but also affected the building’s insurability.

The benefits of proactive maintenance

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The benefits of investing in preventive maintenance are clear for New Zealand body corporates and unit owners:

• Identifying and fixing issues early prevents catastrophic system failures and mitigates risk.
• Regular checks help ensure that systems like HVAC, plumbing, and electrical infrastructure last longer.
• Preventive maintenance helps properties stay compliant with New Zealand’s building codes and health & safety standards, avoiding fines and other liabilities.
• Predictable budgeting: Regular maintenance allows bodies corporate to plan expenses and avoid the sudden strain of emergency repairs.

Preventive maintenance is not just an expense—it’s a strategic investment that protects the value of New Zealand properties. For body corporate managers and unit owners, the cost of neglecting maintenance tasks is far too high. By embracing a proactive approach to building care, you can safeguard your property’s long-term value, reduce risk, and create a safer, more comfortable environment for all.