In today’s unpredictable economic climate, multifamily owners/operators and condominium Boards are under more pressure than ever to make smart capital improvement decisions.
With tighter budgets, the temptation to focus on visible renovations with lower total costs—such as a remodeled lobby or other cosmetic upgrades—is strong. However, putting off a plumbing infrastructure replacement just because it’s “invisible” can lead to consequences that far outweigh any initial benefits or savings.
The Hidden Risks of Delaying Pipe Replacement
Because residents can see them, cosmetic enhancements often take precedence over fixing or replacing aging pipe systems. But when you ignore your pipes, you can create major issues for your community down the line. Here are a few of the risks you run.
Risk #1: From Upgrades…to Damages
Imagine investing in beautiful renovations throughout your property—only to have a plumbing failure cause water or waste damage that ruins your new interiors and disrupts residents’ lives. While you may have managed previous leaks with quick fixes, aging pipes are a ticking time bomb. When a major leak inevitably occurs, you could find yourself paying for renovations twice: first for the initial upgrades and again to repair both the pipes and the damaged interiors.
Risk #2: Insurance Claims and Rising Premiums
Neglecting to replace leaky pipes doesn’t just increase the likelihood of water and waste damage. It can also affect your property’s insurance costs. Plumbing leaks are a major source of insurance claims in apartment and condominium buildings, sometimes prompting insurers to raise premiums (or, in extreme cases, deny coverage altogether). Proactively addressing aging pipe systems is the most effective way to reduce the risk of costly claims and keep premiums manageable.
Risk #3: Skyrocketing Maintenance and Operating Costs
Aging pipes put you in reactive mode, patching up problems as they arise instead of focusing on preventative maintenance strategies. These ad-hoc emergency repairs are not only disruptive—they also add up over time, with a cycle of costs stemming from issues like water damage, spiking bills due to wasted water, and, potentially, mold remediation. In addition, outdated piping systems are simply less efficient than their modern counterparts. For example, upgrading to a more modern HVAC system can not only stop leaks and increase resident quality of life—it can also ultimately save your community money due to significantly lower energy costs.
Risk #4: Resident Turnover in Apartments
For apartment owners and operators, leaky pipes sometimes present another thorny issue: resident turnover. When leaks, water damage, and shutdowns become a recurring theme, tenants are more likely to move out, reducing occupancy and, ultimately, profits. Additionally, dissatisfied residents may leave negative reviews, making it more challenging to attract new residents in the future.
Make Every Dollar Count in an Uncertain Climate
In the current macroeconomic landscape, every dollar counts. Whether it’s from insurance claims, maintenance costs, or turnover, deferring pipe replacement for too long can turn a manageable expense into a future financial crisis.
While cosmetic improvements might seem to offer a quick boost to property values and resident satisfaction, prioritizing surface-level upgrades over replacing outdated pipes isn’t good stewardship of your community’s finances or future. Particularly when material costs are rising, which means a repipe could get significantly more expensive.
Prioritizing pipe replacement is a smart decision because it sets your property up for long-term success. You’ll benefit from:
- Decreased property damages from leaks
- Fewer insurance claims and, potentially, lower premiums
- Lower plumbing repair costs
- Reduced maintenance and operating costs
- For apartment owners/operators: increased resident retention and improved reputation
- For condominium owners: increased property values
Ultimately, leak-free plumbing systems ensure a safe, comfortable home for everyone in your community. And it also protects that remodeled lobby—or whichever value-add upgrade you tackle next!
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Contact SageWater for a free consultation about turnkey plumbing and mechanical upgrades for your community.
Need objective data about your pipes to help with prioritization and planning? SageWater Pipe TEST (Technical Evaluation of System Threats) can help you identify the extent and source of piping issues in your community, understand whether a repipe is necessary, and gauge whether you need to repipe now. Learn more about Pipe TEST forensic analysis.