“Water, water everywhere” is not what you want to be thinking as you’re staring through the windows of the restaurant, drug store and appliance shop that are tenants in the building you own. Water inside a building means likely damage to the furnishings and fixtures, floors and walls inside; it also means the possibility of rotting wood and mold risks; and it means major liability risks.
“Water intrusion,” which is how engineers define the problem, can have many causes, but the most common is construction flaws in a building’s envelope – the vertical surfaces running between the foundation and the roof that separate the interior from the exterior.
The envelope should be water-tight, for obvious reasons; unfortunately, we find that is not the case in many of the commercial buildings we analyze. For purposes of this discussion, we are not talking about “trophy buildings” – the towering skyscrapers that define an urban landscape. We’re talking about the small strip malls with a handful of stores that are ubiquitous in the suburbs. The buildings are low-rise – typically only one-story—and they are usually managed by their owners or by small property management companies, which may in itself increase their vulnerability to water intrusion problems.
Compared with a corporate owner or a management company overseeing multiple large-scale properties, individuals who own and manage small strip malls are likely to be excessively cost-conscious (which sometimes means “penny-wise and pound-foolish”), and inclined to push building components, like the roof, to the end of their life expectancy, patching rather than replacing them when problems appear.
An older roof, oft-repaired, is more likely to leak than a newer one (that is well installed, not all are) or one that has been consistently well-maintained. Leaks in a well-maintained roof will usually be relatively small and isolated; leaks in a neglected roof are likely to be larger, more widespread, and more damaging as a result.
The flat roofs common in commercial buildings are also more prone to leaks than slanted ones. And small commercial properties are particularly vulnerable to roof damage caused by third parties. Commercial tenants are usually responsible for building out their spaces. A mall with eight spaces could have eight different tenants with eight different contractors, all dispatching different workers to install or connect equipment on the roof. The more people traipsing around a roof, the more opportunities for someone to drop a tool, dig a heel, fail to seal an opening, or otherwise damage or weaken the surface in ways that aren’t likely to be discovered until the roof starts to leak.
When we are looking for the source of water intrusion, a damaged or neglected roof is always a prime suspect, but by no means the only one. Architectural features also rank high on the suspect list. Consider the glass storefronts and glass curtain walls that are standard in strip malls. Poorly installed windows are a leading source of water intrusion in residential buildings. The problem is magnified in malls, because they have a lot more glass that requires a lot more maintenance to keep the installations water-tight.
Malls don’t have balconies – another intrusion point in residential structures. But they do have loading docks that are not always treated tenderly by the truck drivers who back into them. Cracks in the docks can funnel water into the building.
The building’s siding can also be problematic. Experts will debate endlessly the relative advantages of different siding products, and there is no question that some are better than
others. But if water is seeping into the building, we find it is most often the quality of the installation, not the quality of the product that is at fault.
For example, Exterior Installation Finish Systems (EIFS) are now widely used in commercial structures. Comprised of a synthetic material that resembles stucco, the finish looks smart and works well – if installed properly. But if the insulation is inadequate or if transitions aren’t sealed properly, the surface won’t be water-tight.
One of the most common installation mistakes is the incorrect layering of building envelope materials. When this occurs, instead of being shed efficiently from one material to another, water accumulates behind the materials and penetrates the structure.
Design features intended to increase the visual appeal of a building can also increase its water intrusion risks. Varying the materials, using different shapes and inserting angles all add architectural interest. But if the different materials used are incompatible, the resulting temperature variations can cause sealants to fail. And every angle you create, every transition you make from one shape or material to another, creates a point at which water may intrude. Transition or termination points represent a tiny portion of a building’s envelope, but they account for much of its vulnerability, and they don’t always receive the water-proofing attention they need.
There are no perfect buildings. Water intrusion is a potential risk for all. But owners of commercial buildings can reduce their risks by being mindful, diligent and proactive. Here are a few suggestions:
Don’t ignore early signs of water intrusion. If you see water stains on ceilings or walls, don’t ignore them. The sooner you identify the source of water intrusion problems, the more controllable they will be.
Bring in experts to investigate. They can provide the objective analysis you need and they can be held accountable for their findings. Often, properly performed water tests are necessary to definitively diagnose water intrusion.
Take care of preventive maintenance. This includes more than painting or power washing the exterior. Replace (and, if necessary, upgrade) the sealants around the perimeter of windows and curtain walls. This is your best defense against water intrusion in those areas. Good sealants last a long time, but they don’t last forever. Experts suggest re-sealing every 5 years on average – less frequently in some parts of the country, more frequently in others, depending on the climate. Preventive maintenance should also include an annual roof inspection performed by an expert. Make necessary repairs when they are indicated and make sensible decisions about when it is most cost-effective to replace the roof rather than to continue patching it.
Consider flooding risks. Although most water penetration risks are centered on the building envelope, ground level flooding may also be a concern for small commercial properties, because they are often built on less than optimal flat sites with less than optimal drainage systems. A heavy rain that floods the parking lot could flood the building as well. A civil engineer can help you asses the flood risks for your property and recommend any mitigation measures you should implement.
Don’t look for short-cuts. There are no Band-Aids for water intrusion. If transitions on the building’s surface weren’t set properly, you have to re-do them. If the siding wasn’t installed properly, you may have to replace it. If the roof is failing, you‘ll have to replace it, too. These measures are going to be expensive. But preventing water intrusion will be far less costly than repairing the damage it can do to your buildings, to the property and health of your tenants, and to your finances.
The Engineering Advisor is intended to enhance your knowledge of technical issues relating to buildings. For additional information on any subject, please feel free to call us. Our commitment is to provide you with timely, accurate information.
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Frequently Asked Questions
Why does my HOA need a reserve study?
The necessity of a reserve study for your HOA lies in its ability to assess and plan for future maintenance and repair costs. This ensures financial stability and helps avoid unexpected special assessments for homeowners.
What does an HOA reserve study company do for the association?
An HOA reserve study company provides essential services to the association by assessing the current condition of common property assets, estimating future repair and replacement costs, and developing a funding plan to ensure financial stability for ongoing maintenance and improvements.
How often should an HOA do a reserve study in Florida?
HOAs in Florida should conduct a reserve study at least every three to five years. This ensures that the association accurately assesses its financial needs for future repairs and replacements, maintaining the property's value and integrity.
What is a reserve study for an HOA?
A reserve study for an HOA is a financial planning tool that assesses the community's long-term repair and replacement needs, helping to determine appropriate reserve funds to ensure the maintenance and sustainability of shared assets.
How to read an HOA reserve study?
Reading an HOA reserve study involves understanding the financial projections for future repairs and replacements of common property elements. Focus on the funding plan, projected expenditures, and the current reserve balance to assess the community's financial health.
How to calculate HOA reserve fund?
Calculating the HOA reserve fund involves estimating the total costs for future repairs and replacements of common area components, then dividing that figure by the expected lifespan of those components to determine annual contributions needed.
Why do HOAs need reserve accounts?
HOAs need reserve accounts to ensure they have sufficient funds for future repairs and maintenance of common areas, preventing financial strain on members and ensuring the community remains well-maintained and attractive.
How often should an HOA do a reserve study?
An HOA should conduct a reserve study every three to five years. This ensures that the association has an accurate assessment of its long-term financial needs for maintenance and replacement of common property assets.
How often does an HOA need to do a reserve study?
HOAs typically need to conduct a reserve study every three to five years. This frequency ensures that the association accurately assesses its financial needs for future repairs and replacements, maintaining the community's property values and overall integrity.
What can HOA reserve funds be used for?
HOA reserve funds can be used for major repairs and replacements of common elements, such as roofs, pools, and landscaping, as well as for unexpected expenses to ensure the community's long-term financial stability.
What is a healthy HOA reserve?
A healthy HOA reserve is a fund that is adequately funded to cover future maintenance, repairs, and replacements of common property elements, typically amounting to 10-30% of the total budget, ensuring financial stability for the community.
What factors influence HOA reserve study frequency?
The factors that influence HOA reserve study frequency include the age and condition of the property, changes in maintenance costs, significant repairs or improvements, and state regulations or requirements. These elements help determine how often a reserve study should be conducted to ensure financial stability.
How is an HOA reserve fund calculated?
The calculation of an HOA reserve fund involves estimating the future repair and replacement costs of common property elements, assessing their useful life, and determining the appropriate funding level to ensure financial stability for the community.
What are common expenses in HOA reserves?
Common expenses in HOA reserves include maintenance and repair of common areas, landscaping, insurance, and replacement of major components like roofs and elevators. These costs ensure the community remains well-maintained and financially stable.
How can an HOA improve its reserve fund?
An HOA can improve its reserve fund by conducting regular assessments of property needs, establishing a clear funding plan, and increasing contributions from homeowners to ensure adequate savings for future repairs and replacements.
What is the purpose of an HOA reserve study?
The purpose of an HOA reserve study is to assess the long-term financial health of a homeowners association by evaluating the condition of common property elements and determining the necessary funding for future repairs and replacements.
How do reserve studies benefit HOA members?
The benefits of reserve studies for HOA members are significant. They provide a comprehensive assessment of community assets, helping to ensure adequate funding for future repairs and maintenance, ultimately promoting financial stability and preserving property values.
What should be included in a reserve study?
A reserve study should include an inventory of the community's major components, their condition assessments, estimated remaining useful life, replacement costs, and a funding plan to ensure adequate reserves for future repairs and replacements.
How often should reserve studies be updated?
Reserve studies should be updated every three to five years or whenever significant changes occur in the property, such as major repairs or alterations, to ensure accurate financial planning and maintenance assessments.
What are the consequences of inadequate reserves?
The consequences of inadequate reserves can lead to financial strain on property owners, resulting in insufficient funds for necessary repairs, increased special assessments, and potential declines in property value.
How do reserve studies impact HOA budgeting?
Reserve studies significantly impact HOA budgeting by providing a detailed assessment of future repair and replacement costs. This enables HOAs to allocate appropriate funds, ensuring financial stability and preventing unexpected expenses.
What is the role of a reserve study company?
The role of a reserve study company is to evaluate and analyze a property's long-term maintenance needs and financial planning. They provide detailed reports that help homeowners associations and property managers allocate funds for future repairs and replacements effectively.
How can an HOA assess its reserve needs?
An HOA can assess its reserve needs by conducting a comprehensive reserve study, which evaluates the current condition of assets, estimates future repair and replacement costs, and determines the appropriate funding level to maintain those assets effectively.
What is the difference between reserves and operating funds?
The difference between reserves and operating funds is that reserves are designated for future capital expenditures or emergencies, while operating funds are used for day-to-day expenses and regular maintenance of the property.
How do reserve studies affect property values?
Reserve studies significantly influence property values by providing a clear assessment of a property's future maintenance and repair needs. This transparency assures potential buyers that the property is well-managed, ultimately enhancing its marketability and value.
What guidelines exist for HOA reserve studies?
Guidelines for HOA reserve studies include following industry standards, such as the National Association of Realtors (NAR) recommendations, ensuring accurate assessments of property components, and conducting regular updates to reflect changes in property conditions and financial needs.
How can technology assist in reserve studies?
Technology enhances reserve studies by streamlining data collection, analysis, and reporting processes. It enables accurate forecasting of future repair and replacement costs, ensuring informed decision-making for property managers and homeowners associations.
What are the best practices for reserve funding?
The best practices for reserve funding include regularly assessing and updating funding needs, establishing a clear funding goal based on a reserve study, and consistently contributing to the reserve fund to ensure adequate resources for future maintenance and repairs.
How do state laws affect HOA reserves?
State laws significantly impact HOA reserves by establishing requirements for reserve funding, maintenance, and reporting. These regulations ensure that associations maintain adequate financial resources for future repairs and replacements, promoting fiscal responsibility and property value preservation.
What challenges do HOAs face with reserve studies?
The challenges HOAs face with reserve studies include accurately assessing property needs, ensuring adequate funding for future repairs, and navigating member expectations. These factors can complicate the planning and budgeting process essential for maintaining community assets.
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Criterium-Hardy Engineers: Your Trusted Engineering Consultants
At Criterium-Hardy Engineers, we specialize in providing high-quality engineering consulting services tailored to meet the unique needs of homeowners associations, residential properties, and commercial entities. Our expertise covers a wide range of services, including reserve studies, property condition assessments, and structural evaluations, ensuring that our clients receive comprehensive solutions for their engineering challenges.
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Our engineering services also include structural evaluations, feasibility studies, and project management, all conducted by experienced professionals. By leveraging our knowledge and expertise, we help clients navigate complex engineering issues and achieve their goals efficiently and effectively.
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We understand that every project is unique, which is why we take the time to listen to our clients and tailor our services accordingly. Our commitment to providing fast, reliable service ensures that you receive the support you need, when you need it, making us the go-to choice for engineering consulting in your area.
Client-Centric Approach
At Criterium-Hardy Engineers, we place a strong emphasis on client satisfaction. Our approach is centered around understanding your specific requirements and delivering customized solutions that exceed your expectations. We believe that open communication and transparency are key to fostering successful client relationships.
Our testimonials reflect our dedication to service excellence and the trust our clients place in us. By focusing on your needs and maintaining high standards throughout our process, we ensure that you receive the best possible outcomes for your engineering projects.
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Requesting services from Criterium-Hardy Engineers is a straightforward process designed to save you time and effort. Whether you need a reserve study, property condition assessment, or any other engineering service, our user-friendly interface allows you to easily submit your request online. Simply fill out the service request form, and our team will get back to you promptly.
Additionally, we offer options for clients to pay invoices online, simplifying the transaction process. Our goal is to make your experience as seamless as possible, allowing you to focus on your property while we handle the engineering details.