What does the term "Deferred Maintenance" imply?

The term "Deferred Maintenance" refers to necessary repairs that have been postponed. This concept typically comes into play when property owners or managers decide to delay maintenance work, even though such repairs are needed to keep the property in good condition. Over time, this can lead to further deterioration and larger costs down the line if the maintenance remains unaddressed. Identifying and addressing deferred maintenance is crucial for appraisers since it can significantly affect property value and investment potential.

Understanding what constitutes deferred maintenance is important as it helps appraisers provide accurate valuations and recommendations for property owners. The other options do not encapsulate this definition accurately. For instance, repairs that are scheduled in the future may be planned but not necessarily indicate a postponement of existing necessary repairs, while upkeep that is cost prohibitive does not specifically imply any action—or inaction—regarding maintenance that is needed. Lastly, maintenance performed during the leasing term does not imply any postponement but rather indicates regular upkeep activities that are part of the property management process.