When it comes to budgeting for the future of your condominium, too many boards overlook one of the most critical and expensive components of the building: the elevator system.
We’ve seen it far too often at The Elevator Consultants. Condominium associations call us when their elevators are on the brink of failure or worse, already down, and they’re shocked to learn they don’t have the funds to do anything about it. They think it can always be fixed since, historically, that is what has been done. In some cases, the elevator equipment is over 30 years old. Parts are obsolete. Skilled technicians are few and far between. And yet, there’s no reserve in place to fix the problem.
This is not just a budget oversight; it’s a crisis waiting to happen.
The Hidden Financial Time Bomb in Your Building
Elevators are vertical transportation systems. That means they’re not just mechanical amenities; they’re critical building infrastructure, just like the HVAC, plumbing, or roof. Yet somehow, they often go unaccounted for in condominium reserve studies and long-term financial planning.
Many HOAs and condo boards do budget for more visible upgrades like new lobbies, painting, facade work, landscaping, or roof repairs but they forget the one asset that every single resident relies on daily, especially in mid- and high-rise buildings: the elevator.
When a 30+ year-old elevator breaks down, you’re not just facing a minor repair. You may be facing full elevator modernization which is a project that can cost hundreds of thousands of dollars, depending on the size of your building and number of units. And if you don’t have the money set aside, your only option may be to assess every unit owner with an assessment fee. In some buildings that kind of expense can be devastating and financially difficult.
Why Elevator Systems Get Overlooked
Let’s take a closer look at why so many condominium associations don’t have proper reserves for elevator work:
- Out of sight, out of mind – Elevators often continue to run, even when they’re outdated or showing early signs of wear. Boards delay action because “they’re still working.”
- Lack of technical knowledge – Few board members or property managers are elevator experts. Without guidance from an elevator consulting firm, many assume elevators will last forever with routine maintenance.
- Incomplete reserve studies – Too many condominium reserve studies are conducted by firms that don’t consult specialists in elevator systems. As a result, major repair or modernization costs are wildly underestimated or not included at all.
- Competing priorities – When balancing budget demands, visible or comfort-related items like HVAC or cosmetic renovations often take priority. But if your elevators go out, residents will notice immediately.
- Pass inspection- If the elevators pass inspection by the elevator authority having jurisdiction, it is common to think that the elevators are fine. An inspection reviews safety issues and may not address performance issues.
What Happens When You Don’t Plan?
Without a reserve fund for elevators, you’re exposed to several costly and some frustrating risks:
- Emergency breakdowns – When obsolete parts fail, your elevator could be down for weeks or months while you scramble for solutions, if one exists at all.
- Entrapments and callbacks – Outdated systems can have higher failure rates, increasing the risk of entrapment, injury, and liability.
- Code violations – Older elevators may not be up to new safety or accessibility codes (like Americans with Disability Act, https://www.ada.gov/, and others), which could result in fines or forced shutdowns.
- Forced elevator assessments – Unit owners may suddenly face five-figure special assessments they can’t afford.
- Loss in property value – Buildings with inoperable or unreliable elevators become less attractive to buyers, driving down property values and unit sales.
This is why reserve planning isn’t just financial; it’s protection against disruption, liability, and financial harm to your owners.
What If the Money Isn’t There?
This is one of the most common questions we get from condo boards: “What do we do if we don’t have the reserves?”
Unfortunately, no quick solution exists. If your reserve account lacks sufficient funds, the association may need to secure a loan to cover necessary elevator repairs or modernization. In many cases, these loans can be arranged at the association level and repaid over time through higher monthly assessments or special assessments.
Many condominium owners also ask about grants or government funding for elevators. In almost all cases, privately owned residential buildings do not qualify for grants or “free money” programs. Therefore, if the condominium owns the building, the association and its members bear full responsibility for maintaining and modernizing the elevators.
This is why planning ahead and building your reserve is not just best practice, it’s the only way to avoid unexpected financial hardship.
How to Plan for Elevator Costs the Right Way
If your association hasn’t already, now is the time to re-evaluate your reserve strategy and take elevators seriously in your long-term capital planning. Here’s how to get started:
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Conduct a Professional Elevator Assessment
Bring in an expert elevator consulting firm—like The Elevator Consultants—to conduct an audit of your equipment, evaluate age, code compliance, obsolescence, and estimate remaining useful life. This will give you a realistic picture of your elevator’s current condition. It is common to have a company that does condominium association reservice studies and they are not elevator experts and usually get this wrong.
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Update Your Reserve Study—Accurately
Work with your reserve study provider and your elevator consultant to include realistic cost estimates for elevator repair, code upgrades, and modernization in your condominium reserve study. If your current study does not include this, it’s time to update it using an elevator expert.
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Prioritize Elevators as Critical Infrastructure
Your monthly HOA dues or condominium fees cover essential services like waste removal, landscaping, maintenance and your elevator should be in that same “must-have” category. Budget accordingly and build your building reserves just as you would for a roof or HVAC system.
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Plan for Modernization—Before It’s an Emergency
If your elevator is more than 25 years old, you should be planning for a modernization project. Spreading out funding over time is far less painful than scrambling for cash in an emergency.
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Educate the Board and Residents
Often, boards are unaware of elevator issues until it’s too late. Educate stakeholders on the importance of proactive planning, the risks of deferring action, and the cost benefits of addressing issues before failure.
Final Thoughts: Don’t Wait Until It Breaks
Your building’s elevators are not going to last forever and they are not cheap to repair or replace. But failing to plan doesn’t make the cost go away. It only makes the consequences worse.
As elevator consultants, we’ve seen firsthand what happens when reserves aren’t there: stranded residents, skyrocketing assessments, angry owners, and a board under fire. Don’t let that happen to your condominium community.
If you’re unsure about the condition of your elevators or whether your condominium reserve study includes realistic funding for repairs or modernization, contact The Elevator Consultants today. We’ll give you the clarity, the strategy, and the expert guidance you need to plan smart and protect your investment.
Frequently Asked Questions (FAQ) About Condominium Elevator Reserves and Modernization
Why don’t most condominium reserve studies include accurate elevator costs?
Many reserve studies are conducted by firms that lack elevator-specific expertise. They rely on “it passed inspection” and is only X years old so it is okay. As a result of this formula, they either underestimate the costs or overlook modernization altogether. Partnering with an elevator consulting form ensures those numbers are realistic.
How long does an elevator typically last in a condominium building?
Most elevator systems have a useful life of 25–30 years, depending on usage, maintenance, equipment model, parts availability, and equipment type. After that, modernization or full replacement is often required.
Can we get grants or government funding for elevator repairs or upgrades?
In almost all cases, no. If your building is privately owned by a condominium association, you’re responsible for funding elevator repairs and upgrades. There are no widely available grants or “free money” for residential elevator work that we know of.
What are our financing options if we don’t have money in reserve?
If your reserve fund doesn’t cover the required elevator work, you may need to explore bank loans, association financing, or special assessments. Some lenders specialize in HOA and condo association loans for capital improvements like elevator modernization.
What happens if we delay elevator modernization?
Delaying needed upgrades can lead to increased breakdowns, code violations, safety risks, and emergency shutdowns, not to mention headaches and frustrated owners. The longer you wait, the more costly the repairs and the more disruptive they become.
Are old elevator parts still available for systems over 30 years old?
In many cases, the answer is no. Manufacturers stop supporting older elevator systems, and parts become obsolete. Even when parts are available, they often come refurbished, making repairs only a short-term solution.
How do we know if our elevators are code-compliant?
A professional elevator audit, elevator assessment, elevator survey, or elevator inspection conducted by a qualified elevator consultant can determine code compliance. Codes also change, and new mandates can affect existing systems.
Why are elevators often left out of reserve budgeting?
Elevators are “invisible” compared to visible items like roofs or landscaping. They’re often ignored until they fail. But because they’re critical to building function, they should be a top priority in your capital planning.
How much does elevator modernization cost?
Costs vary, but a full modernization can range from $125,000 to $500,000+ per elevator depending on the number of floors, type of system, code upgrades, and scope of work. A detailed elevator evaluation is needed to provide an accurate estimate
Who should we call to evaluate our elevators and update our reserve study?
An independent elevator consulting firm like The Elevator Consultants can help give you realistic elevator cost. We’ll assess the condition of your elevator equipment, provide a roadmap for elevator repairs or elevator modernization, and help ensure your condominium reserve study reflects real elevator costs.