Have you ever felt uncomfortable when your condo board revealed there was a “special assessment” for a surprise repair? You're not the only one feeling this way. Surprise expenses from rooftop leaks, elevator malfunctions, and burst pipes can seriously interfere with your community's finances.
The fact is, many of these emergencies are preventable. The real issue is the distinction between preventative maintenance and reactive maintenance. By understanding what costs you could incur and budgeting accordingly, boards throughout Illinois would be able to save money for the owners and run a building smoothly without the late-night repair bills.
What Preventive vs Reactive Means
Preventive maintenance (PM) is meant to be proactive with regular inspections, servicing, and minor repairs to prevent breakdowns. For instance, tuning up your HVAC system for the season, cleaning gutters, and having your roof inspected routinely.
Reactive maintenance (RM) takes place when something breaks. For example, a pipe bursts, an electrician comes to do emergency electrical work, or changes on/to the roof after it is leaking. PM is a great way to spread costs over time. Conversely, RM generally introduces surprise expenses that often cascade into greater expenses, eventually leaving the property owner bummed out.
How Much More Does Reactive Cost?
Industry studies indicate that reactive repairs can cost anywhere from 25 to 30% more than preventive care. Why? The factual answer is that emergency labor, expedited parts, and damage remediation add up quickly.
To illustrate, a $300 annual HVAC service will extend the system's life; not servicing an HVAC system could make it last years shorter and possibly lead to a $10,000 replacement. In the case of Chicago, when reserve studies have indicated many associations are underfunded, almost all associations that rely solely on reactive repairs lead to a painful special assessment.
Real Chicago Numbers — Budget Context
In numerous Condo boards across Chicago, the monthly assessments usually hover around $300-$400 per unit. However, this number does not always provide for reserves. Particularly, when roofs, elevators, and masonry unexpectedly fail.
The increasing costs of inflation and premiums for insurance make surprises harder to accommodate. Turning preventive savings into actual line items: HVAC inspections, elevator maintenance, façade inspections, allows Chicago condo boards and owners to stabilize maintenance costs year over year.
Legal And Governance Drivers for Illinois HOAs
According to the Illinois Condominium Property Act, boards are responsible for budgeting for repair and replacement. Recent law changes have increased demand for regular reserve studies.
Best National Practice (from both CAI and local management groups) echoes this: plan for preventive upkeep, keep reserves healthy, and reduce reliance on last-minute fixes. Whether you are looking to improve HOA budgeting in Illinois or working to comply since it is part of your operations mandates, following the law will also support your financial stability.
Practical Budgeting Framework
Want to make preventive budgeting simple? Break it into steps:
- Reserve study/inventory assets — Know what you own and its expected lifespan.
- Prioritize preventive tasks — Focus on safety systems and high-cost components.
- Fund and schedule — Allocate operating funds for minor tasks and reserve funds for big-ticket replacements.
Sample budget line items: seasonal HVAC servicing, roof inspections, elevator maintenance, exterior sealing, tree trimming, and plumbing checks.
Budget Smart — Avoid Surprise Assessments
Special assessments don’t have to be inevitable. With preventive planning, boards can keep buildings safe, costs predictable, and owners confident. Ready to balance preventive care with smart finances? Partner with Connected Management for expert budgeting support, reserve planning, and maintenance strategies tailored to your community.