Capital improvements are defined as either an addition or an improvement to a property that will increase its overall value or lifespan.
These improvements can be made by both homeowners and property owners of a larger scale, and the exact scale of the improvements can vary.
Capital improvements are normally covered in cost by capital reserve funds, which are accrued through fees charged to owners who have paid their full property loan in order to create a surplus of funds which can contribute to either repairs or renovations. An example of capital improvements for a homeowner would be something such as a new water heater, which is something that would improve market value and increase the longevity of the home. Subsequently, a capital improvement for a large-scale property would be something such as a parking lot, or street lighting.
If you have any additional questions regarding capital improvements, feel free to contact us.