What is Wear and Tear of the Common Elements?
The common elements of the corporation are the parts that are owned jointly by all owners. This typically includes the parking lot, sidewalks, hallways, elevators, boilers, benches, grass, and a host of other items. Like with everything else, these common elements are subject to wear and tear.
Broadly, wear and tear can be defined as the wearing of an item associated with normal use (as opposed to intentional damage). Wear and tear includes:
Gradual staining of carpets
Marks and scratches on doors
Occasional death of plantings
Cracks in pavers
Damage to light fixtures
Rusting railings
What Causes Wear and Tear?
Wear and tear is caused by the normal use of the buildings. Occasional stains can be caused by leaky garbage bags, or animal “accidents”. Every winter season causes some broken benches, sidewalks that heave, and damage to carpets from salt carried in on boots are some examples. These are all items that are routine, and are not the fault of one particular owner or guest.
How Much Wear and Tear is Normal?
This is a difficult question to answer precisely. It depends on two main factors: volume of traffic and type of user.
The larger the building, the more severe the wear and tear. The volume of traffic means that even if wear is slow, the frequency of use is a significant factor.
Renters are often (but not always) less careful about the building they inhabit and can cause more wear and tear. This is amplified with student rental populations, who are typically some of the highest-wearing residents.
This means that a large high-rise with a high proportion of student renters will have among the highest amounts of wear and tear, while a small owner-occupied townhouse complex will have a substantially smaller amount of wear.
How does wear and tear affect the owners?
Wear and tear means cost. A high-wearing building should expect to spend more on replacing and repairing wear and tear throughout the years. Normal repairs in a high wearing building include:
Replacing occasional carpet tiles
Patching and painting parts of the walls
Repainting doors and replacing door closers.
Repairing or replacing a broken piece of furniture.
More frequent cleaning/power washing of walkways, parking lots, etc.
These costs are reflected in the operating budget, and directly translate into higher fees for owners. For a detailed discussion of common elements and common element fees, see this post (insert link to Common Element Fees post).
What about the reserve fund?
The reserve fund is designed to make large replacements when components near the end of their service life. For example, replacing a few stained carpet tiles is an operating expense, while replacing all of them because they are damaged and faded is a reserve fund expense. Likewise, repainting a section of wall with lots of marks on it is an operating expense, while repainting all the hallways every 10 years is a reserve fund expense.
How Can We Reduce Wear and Tear?
Reducing wear and tear is a collaborative approach between the board and manager. The manager should start by implementing an aggressive signage and education campaign. All residents should be made aware of the rules in the building regarding pets, garbage cleanup, move in/out, etc. The board should then follow up by passing a policy regarding chargebacks to owners. The manager should then use cameras and other means to determine the owners responsible for damaging doors, pet “accidents”, etc. The full cost of repairing these issues should be charged to owners.
The manager can also assist by recommending more resilient materials to replace damaged items. This can include different paint finishes, different furniture materials, and even plantings that are more resilient to drought/shade/salt damage.
Written by Michael Trendota*, RCM
Chief Operating Officer of Alwington Communities
Michael is a property management professional with experience operating a diverse set of buildings, including high-rise, low-rise, and townhouse-style. His passion is bringing neighbors together to build exciting and vibrant communities. Michael draws from his own condo board member experience to advise board members on the opportunities and challenges facing their communities. Michael holds a Masters of Business Administration from Queen’s University and is a Certified Property Manager.
* Though written by a qualified and experienced Condominium Manager, this article is not intended as legal advice. Please consult your own experts for advice.
