Protecting Your Property from Wood Rot

You can’t see them, but they can make a beautiful property look dilapidated. They are not visible to the naked eye, but they can threaten the structural integrity of a large building. When they attack, they can turn solid wood into pulp. What are these evil creatures? I am speaking of fungi, of the wood decaying variety. These organisms need only water and warmth to begin their campaign of destruction. Once warmth and water are introduced to wood, the fungus spores will blossom and begin to grow and feed, and ultimately destroy the wood where they reside. Many times this damage is undetectable until it is too late. Before you know it, your property is covered with wood rot, residents are unhappy, and the property looks terrible. Fortunately there are some ways you can prevent wood rot from occurring, but you have to know what to look for and stay vigilant.

The Building Envelope

Buildings are designed and constructed with water infiltration in mind. The area of architectural and engineering practice related to this issue is called Building Envelope Design. The Building Envelope includes all the building components that separate the interior environment from the exterior environment. It serves as the outer shell of the building and includes the exterior walls, foundations, roof, windows, and doors. Building designers take into consideration 4 major performance objectives when designing the building envelope:

1. Structural Integrity
2. Moisture Control
3. Temperature Control
4. Control of Air Pressure

Moisture Control is the most important of these objectives relative to wood rot. The building envelope is designed to control the rain and direct it away from the structure to prevent high moisture content. If moisture content is above 20%, it provides a potential breeding ground for fungi. Below are listed the primary areas of where water infiltrates the building envelope and causes wood rot. When performing your periodic inspections, be sure to look for failures in any of these areas. If you identify a failure in the building envelope, it is important to address it immediately to mitigate the amount of damage.

Causes of Wood Rot

1. Failing Caulk

Caulking refers to the use of a flexible sealing compound to close gaps in buildings other structures against water, air, dust or insects. It is an essential component of the building envelope and plays a pivotal role in protecting your property against wood rot. It is important that you inspect the caulk joints regularly, because once the caulk fails, your wood will begin to rot soon thereafter. Typical places where you should inspect are the Trim/Window Joint, the Trim/J-channel Joint, or the Window/Brick Joint.

2. Failing House Wrap

House wrap is the water resistant barrier, usually installed beneath siding that prevents water from entering the wall assembly while allowing water vapor to pass to the exterior. The brand most commonly known is Tyvek, however there are other options available. Common failures of the house wrap are due to missing house wrap, breaks in the house wrap or reverse lapping of the house wrap. House wrap should be installed beginning at the bottom and working your way up the building so that the top layers overlap the bottom layers. There should be no breaks and seams should be taped.

3. Missing Cap Flashing

Cap flashing is a form of flashing which is designed to protect against water infiltration over windows and doors and other similar penetrations in the building envelope. It is typically a metal such as aluminum or copper and is impervious to water. Cap flashing is an effective waterproofing element in the building envelope but is not always installed. If you find that an area of window/door trim is continually rotting, you should consider installing cap flashing. If rot is occurring where cap flashing is installed, then the cap flashing is most likely installed incorrectly.

4. Faulty Siding

The purpose of siding is to shed water away from the building. It is important then to look for any areas in the siding that might trap or collect water instead of directing it away from the building. The J-channel is a common problem area, because it is installed around windows and doors and siding terminations. If the horizontal pieces are installed incorrectly then the J-channel will collect water which can then enter the building structure. It is also important to inspect all penetrations through the siding such as hose bibs, HVAC disconnect lines, dryer vents, light fixtures, etc. Make sure these areas have proper flashing or are sealed properly.

5. Roof Leaks

Roof leaks are a very common cause of wood rot. What makes roof leaks tricky is the fact that water often travels great distances along the rafters before entering the wall. This means that the wood damage could be 50 feet away from the source of the leak. It is important to have regular roof inspections from a qualified roofer, or to promptly make roof repairs when discovered. Roof inspectors should check for missing shingles or flashing, ensure that all roof penetrations are sealed, and make a determination on the remaining life of the roof. If possible, they should enter the attic to check for water stains on the roof deck or rafters.

6. Gutter Leaks

It is very important to make sure your gutters are functioning properly. If they are not functioning properly, water can pour out in large quantities onto various parts of the building envelope that are not intended to handle that much water. Keeping your gutters clean is the best and easiest way to avoid this from happening. You should set up a regular cleaning at least twice a year. Over time gutters can begin to sag, so you should check to make sure the gutter is sloping downward toward the downspout. Also inspect all joints and terminations to make sure they are properly sealed. You should also have a qualified gutter installer determine if your gutters are large enough to handle the water runoff of a roof your size.

Many property managers are using this information in defending their property against wood rot and have reaped the benefits. You are now better equipped to win the battle against the nefarious wood decaying fungi. The more diligent you are in staying on top of the above mentioned areas, the more money you will save in the long run and the better your properties will look.

The Lesson of the Oil Change

The Lesson of the Oil Change

When I turned 16 and got my driver’s license, I was the lucky recipient of the family Thunderbird which had been handed down from my Dad to my sister to my brother and then to me. This car had been through 2 trips to Florida, 10 trips to New York, 2 proms, 3 homecomings, and somehow managed to survive, until it got to me. After several months of driving, I kept noticing a peculiar little red light that would appear next to the speedometer. It almost looked like an oil can or something. I kept thinking, “I better check into that.” But at 16 I subscribed to the philosophy so eloquently described by Mark Twain, "Never put off until tomorrow what you can do the day after tomorrow." After a couple more months of driving with that annoying little red light, I was driving on the beltway when my car began to make a loud banging noise. I was a little upset because I really liked the song that was on the radio, and I couldn’t hear a thing with all that banging. I got really worried though when I saw smoke pouring from under the hood and I began to lose power. Apparently, that red light was telling me that I was low on oil, and a car doesn’t run very well without oil. Now I know. As it turns out, an oil change only costs about $30, and new engines cost about $4000. A valuable life lesson for sure. Sometimes you have to spend a little money now to save a lot of money in the future. This lesson so happens to apply perfectly to the maintenance of your properties.

Fireman Mode and the Squeaky Wheel

In this economy with high unemployment and stagnant growth, the community budget looms large in the minds of associations and property managers everywhere. Delinquency rates are reaching an all time high as association dues are increasingly more difficult to collect. As communities seek for ways to slash expenses to compensate for reduced income, capital improvement and maintenance projects are the first to be cut or postponed. After all, you can’t very well cut your insurance, or taxes, or trash removal, so it is easy to rationalize postponing the painting project or the roofing project. Many properties are forced to go into Fireman Mode, where they don’t spend money unless it is to put out the proverbial fires that arise on the property. Or they respond only to the residents who complain the loudest, just to silence the squeaky wheel. Meanwhile, the much needed maintenance projects are neglected. I realize that sometimes, it is unavoidable and these projects must be postponed, but for those properties where some creative financial management would enable you to do the project, it will actually save you money in the long run to do them now. “Remember to Change the Oil.”

Why You Shouldn’t Wait

We are always asked by property managers, “How long can we put off this project?” That is a difficult question to answer, because we haven’t yet found an algorithm that will predict how much damage you are doing each day you wait, and how much that damage will cost you in the long run. However, we have learned from our 29 years of experience, that the longer you wait, the more expensive the project will be when you finally do it. Below you find some persuasive reasons why you shouldn’t postpone your projects if you can help it.

1. Safety First

Many projects fall within the Fireman Mode category such as loose balcony railings, unstable porticos, and loose electrical wires. These types of projects are handled immediately due to their urgent life protective nature. However, there are some projects that pose safety hazards and are postponed simply because the hazards are hidden or unknown. For example, if left unchecked, leaks can not only lead to rot and dry rot, but can also lead to mold and termite infestations. We recently had a project where mold had entered into the HVAC system and was causing the owners to experience allergic reactions. These types of water-related problems can get your property blackballed by insurance companies worried about the soaring number of mold-related claims nationwide. Water can also cause roofs to collapse and foundations to buckle. It is therefore important to employ the help of experts to point out these potential hazards, before they become hazards.

2. Curb Appeal

There is a lot to be said for maintaining an aesthetically pleasing appearance on your properties. Having a well maintained, attractive property will increase property values of the homes in your community. If the improvement involves energy efficiency, such as window replacements, the residents can enjoy savings on their utilities. The residents will enjoy their living experience much more which improves overall community satisfaction and morale. This can lead to improved collection of HOA or condo dues as residents feel that they are getting something for the money spent.

3. Behind the Eight Ball

As you know, property maintenance doesn’t wait around until you have the money to spend on it. What that means is that while you are postponing Project A, a new project will raise its ugly head. Then while you are finally doing Project A, Project C and D arise. Before you know it, you are playing catch up with your maintenance, but you are unable to catch up. Believe me, these things can pile up fast. It has been said, "Procrastination is the art of keeping up with yesterday." It is crucial then to get ahead of the game and create a proactive maintenance plan. Set your property up on cycles so that each aspect of property maintenance is taken care of on a regularly scheduled basis. And if possible, make these parts of your budget sacred. It is not a good idea to put things off until you have more money, because you never know when you will actually have more money.

4. Penetrating the Fortress

Most major condominium repairs are required because of a failure of the building envelope. The building envelope is a term that refers to the exterior components of a building that separate the indoor from the outdoor. It serves as the outer shell of the building and includes the exterior walls, foundations, roof, windows, and doors. It can be compared to a fortress wall. The building envelope is designed to keep its primary enemy, water, outside of the building and if designed correctly will successfully perform this function. But once that fortress is penetrated, or breaks down, the rate of destruction increases exponentially. For example, if the roof fails in its function to shed water from the building, then instead of replacing a couple of shingles, you are replacing rotten plywood and rafters. Or instead of caulking and painting trim, you are replacing large amounts of rotten trim and structural wood. So the key is to never let your fortress wall become weak. You must maintain all components of the building envelope and make sure the water is shedding away from the building.


Why Didn’t I Just Change the Oil?

So after mowing the lawn about 100 times to pay my dad back for the new engine, I had learned the valuable lesson of the oil change. How much time and money and sweat and tears would have been saved if I had just taken a quick stop at the local Jiffy Lube? So as you sit down in your board meetings to discuss the annual budget, keep in mind the Lesson of the Oil Change.


About the Author: Craig Middledorf is the Vice President and part owner of Middledorf Property Services, a local commercial renovation firm serving the property management industry since 1982. Craig graduated from Brigham Young University in English and earned his MBA from University of Maryland. He is also owner of a residential roofing firm and holds a current Maryland Real Estate License.

Top 5 Ways to Fine Tune Your Bidding Process

Does any part of the following scene seem familiar? At your last inspection, it was noted that the paint is peeling all over the property. Resident complaints have been rolling in at a steady pace. Anxious to resolve the problem you send out a request to a few contractors for a proposal to paint the property. Some bids come in on time, some come in late, and some don’t come in at all. Finally, after repeated attempts, you get your 3 bids, and upon closer examination, you realize that the 3 bids are vastly different. Not only are the prices different, but the proposed scope of work is so different, that you can’t possibly do a side-by-side comparison of these bids. It is a simple repaint project…how many ways are there to paint a board? How could this happen? Let me share some thoughts from the perspective of a contractor as to how this could happen. There are thousands of contractors out there and each one has a different level of experience, different methods, different pricing strategies, and different perspectives on quality. This is what leads to the considerable differences in the bids received. Let’s use the example above of a painting project to illustrate my point. The following are some of the major aspects that influence the scope of work and price of a proposal:

As this illustrates, there are many areas where the scope of work and price can differ. If the contractor thinks that the primary selection criterion is price, then they will cut back on labor and material costs in an effort to submit the lowest price. However, this does not serve the needs of the community. Below I suggest the TOP 5 WAYS you can fine tune the bidding process and eliminate the above problems from happening:

This step ensures that before you even ask for a bid, you know that the contractor has been thoroughly vetted and is qualified to respond to the bid. This list should have at least 5 contractors in each trade. You want to make sure that each contractor on your vendor list holds themselves to high standards. You can use the criteria listed to the right.

Before sending out the request to the contractors, be sure to have a detailed set of specifications already prepared. This is the step that is often skipped or done improperly, but is perhaps the most important step in the bidding process. This step alone will ensure that the bids are more comparable and more in line with the community’s needs. The specifications should clearly state what is expected at each stage of the project. To ensure that the best possible solution to your problem is found, be sure that the specifications are generated by a professional. If a member of the community is not available or capable of generating these specifications, then an engineer or qualified contractor should by hired for this purpose. If a contractor is selected to do this, they should be paid for this service, otherwise they will expect preferential treatment during the bidding process. The more detailed the specifications, the less variance you will get in the bids which facilitates an apples-to-apples comparison. These specifications can then be used in future years when this project is needed again.

The government spends hundreds of billions of dollars every year and awards over 10 million contracts every year. As a result the government has mastered the procurement process. Some important lessons and procedures can be gleaned from government procurement and applied to property management. The following is one example of a systemized bidding process. Each step should be assigned a date and the schedule sent to each contractor at the beginning of the process:

This may sound a little self serving being that I am a contractor and all. Obviously, the contractor also has an obligation to keep you happy, however, let me suggest that it is in your best interest to keep them happy as well. I believe that the Property Manager/Contractor relationship is a mutually beneficial one. As property managers, you provide enormous opportunities to contractors for work. And as contractors, we fulfill a need that you have to respond to community maintenance needs. This clearly is a Win/Win relationship. However, this business relationship can sometimes break down if either side feels that it is becoming a Win/Lose relationship. From the perspective of the contractor, part of running a successful business is making sure you are maximizing productivity and utilizing resources efficiently. If it appears that a lot of time is being invested into the business relationship without much return on that investment, then it becomes difficult from a business perspective to maintain that relationship. Contractors don’t want to feel like they are being used to fulfill a quota to get 3 bidders. Contractors realize it is a competitive situation, but just want to feel like they are being given a fair shot. If a contractor continues to bid but doesn’t seem to ever win, provide them with helpful feedback or you may lose them. Although there are many contractors out there, you have taken the time to vet this particular set and it can be a huge inconvenience to go through the vetting process again to find a replacement contractor. If you can keep your contractors happy, it will improve their response time, their willingness to help in emergencies, and eliminate the difficulty in finding good contractors to bid on your projects.

The best way to minimize maintenance costs for a community is to stay ahead of the curve. What this means is you plan and schedule a maintenance cycle so that key maintenance issues are addressed before they become problems. It is much more costly to maintain your property if you wait for the problems to surface. By that time, you are playing catch up and much more damage has occurred which means that the repair costs will be significantly higher. The time to set up a maintenance cycle is during the preparation of the specifications for the RFP. As bidders respond to the RFP, they should be required to submit pricing which coordinates with your maintenance cycle. If you set your community up on a cycle, the benefits are many. You will stay ahead of the curve, reduce repair costs, minimize resident complaints, and improve curb appeal and property values.

Many property management companies have implemented some or all of these steps into their training and procedures and have reaped benefits in direct proportion to their discipline in staying true to them. It may take time to implement these 5 steps, but it will be time well spent. Gone will be the days of searching to find available bidders, hunting them down to get the bids in on time, and receiving bids that barely resemble each other in scope. You will save time and effort because you will have a list of pre-qualified contractors ready and willing to bid using clear pre-defined specifications. There is an easier way and this is it.


About the Author: Craig Middledorf is the Vice President and part owner of Middledorf Property Services, a local commercial renovation firm serving the property management industry since 1982. Craig graduated from Brigham Young University in English and earned his MBA from University of Maryland. He is also owner of a residential roofing firm and holds a current Maryland Real Estate License.

5 Ways Contractors Cut Corners

Have you ever suspected that your contractors are cutting corners? We have come across many jobs over the years where it is very evident that the previous contractor cut corners and as a result the property suffered. We hate to see this happen to communities because if your contractors are not doing the job properly, it can lead to many costly problems. We feel that if we can alert you to these areas, you will be able to identify if it is happening to you and prevent it from happening in the future.

1. Not Priming

Usually if you see peeling paint, you know that the contractor most likely did not prime. Priming is an essential step in painting, and if not done, the topcoat will fail. Contractors try to skip this step because the owner will never know if it was done once the topcoat is not on, so they try to save time and money by not doing it.

2. Only One Coat

Many times we find that even though a repaint contract calls for 2 coats, the contractor just puts one coat of paint. This does not allow for proper protection or coverage and can lead to the breakdown of the paint coating at a much more rapid pace. That means instead of needing painting every 4-5 years, it is shortened to 2-3 years.

3. Thinning the Paint

Many contractors add water or solvent to the product to try and get extra square footage out of each gallon in an effort to reduce material costs. Paint manufacturers say that doing this reduces the effectiveness of the product and shortens its useful life.

4. Carpentry Shortcuts

Many contracts call for the replacement of rotten wood. Instead of replacing the entire piece of rotten wood, contractors will simply fill rotten areas will putty or cut out the small rotten section and replace it with a small piece of trim. This results in a very unattractive finished look. Many framing contractors will put studs 24" on center instead of the recommended 16" on center. Some will not follow proper framing techniques around windows and doors.

5. Roofing Shortcuts

We have seen many roofers cut corners in terms of waterproofing measures. It is industry best practice to apply felt paper to the roof deck prior to installing the shingles, however we have encountered some instances where this was not done. In many instances, proper flashing and waterproofing membrane was not installed which could lead to future leaks.



About the Author: Craig Middledorf is the Vice President and part owner of Middledorf Property Services, a local commercial renovation firm serving the property management industry since 1982. Craig graduated from Brigham Young University in English and earned his MBA from University of Maryland. He is also owner of a residential roofing firm and holds a current Maryland Real Estate License.