President's Pen, Fall 2025
Budget Season
As the multifamily housing industry enters budget season, property managers, asset managers, and ownership groups are tasked with shaping the financial framework that will define the coming year. Far more than a routine exercise, budgeting is a strategic process that balances operational efficiency, asset preservation, and resident satisfaction in an increasingly competitive market.
Let me share a few projected increases on the maintenance side of the industry to keep in mind as you are working on your budget. Because maintenance constitutes roughly 15-20% of the operating expenses, maintenance costs are projected to rise by 5.7% in 2026. As you know by now, one of the biggest changes for next year is going to be HVAC. Due to the EPA’s shift to low-GWP refrigerants (like R-32 and R-454B), one report forecasts that maintenance and replacement costs, especially for systems like A/C condensers that require both air handle and possibly line-set upgrades, could increase from roughly $1,000- 1,500 to between $3,000-5,000, effectively tripling replacement costs under the new standards.
As you are reading this article, you are telling yourself that you have nothing to worry about because you are managing a new community; please keep in mind that parts for HVAC will also increase by 5.2%. Please share this with your teams and empower them to perform preventative maintenance (PM) on the units.
Let’s not forget about our wonderful amenities, especially our swimming pools. If you are planning on replacing a pool pump/motor, it will cost you roughly $5,000-$7,000, and why is that, you ask? Well, that’s because you will now have to purchase a variable-speed control motor pump if you do not already have one. And if you replace the motor/pump, you will also need to update your VGB, engineer letter, and pull an electrical permit. Always keep in mind that you are not alone in this. As you are working on the budget, please reach out to our vendor and supplier partners and ask what will be the increase for next year? These are just a few of the changes happening now into 2026.
TAA-PAC
As president of TAA, I want to sincerely thank each of you who has contributed to our PAC in past years and again this year. Your generosity is deeply appreciated. As many of you know, this is an important election year in the Triangle, with several key candidates on the ballot for local positions.
Our goal is to raise $40,000 by the end of the year, and with your continued support, I am confident we will get there. I have always believed that supporting the PAC is one of the most effective ways to make a real difference in our industry. These contributions allow us to build strong relationships with leaders at the local level, which in turn strengthen our influence and advocacy efforts at the state and national level.
No contribution is too small — every dollar truly matters. Together, we can ensure our industry’s voice remains strong and impactful.
Franklyn Rodriguez, CAPS, CAMT
TAA 2025 President
taapresident@triangleaptassn.org