CAI-NJ Nov. 2019(w)

O N E DO THING BETTER The Five P’s of Capital Improvement Essentials By: Robert Arnone, CMCA, AMS, CPM RCAManagement, LLC Municipalities collect taxes to pay for future capital expenses including road improvements, in- frastructure, among others. Why should the mini-government of a condo association be any different? An association’s members pitch in by understanding the importance of having a per- centage of their common fees be a toll on future repairs. PITCH IN The life span of capital structures can vary. From five plus years to over forty plus years with many capital improvements falling somewhere in between. If five capital structures have a life expectancy of twenty years, evaluate these structures three to four years before the useful life ends. Then decide which of these will require replacement sooner rather than later and those whose life can be extended. prioritize Communication is key to a successful project completion. Communicate with members, communicate with res- idents, and communicate with neighbors. Depending on the scale of the project, lives may be disrupted. An interruption in one’s daily routine will only be more disruptive if not given the opportunity to plan. The better communication the less discontent of the lives it effects. Plan Finding the right partners is just as important as planning the project. Whether partnering with a bank for fund- ing, attorney to review the contract or contractor to complete the project, these are your partners, not your adver- saries. Making them feel that their success is your success will have them looking at the project in a different light. Partner

When following the previous four Ps in an orderly fashion when it comes to the last P it is like walking into your office with a clear desk. You have prepared for this day. There is always going to be the unexpected. That is to be expected. You will be ready to react. And when all is said and done a sense of accomplishment as the clock begins anew on the useful life of this capital structure. proceed

Interested in writing for the Do One Thing Better Section of Community Trends® ? Contact Jaclyn Oskierko at jaclyn@cainj.org for more information.