A capital improvement is a long-term investment that adds value to a property or increases its useful life. Capital improvements can include a wide range of projects, such as adding a new room or wing to a building, installing a new roof or HVAC system, or renovating a kitchen or bathroom.
Capital improvements are typically made to increase the value or functionality of a property, and they can be either physical improvements to the property itself or the addition of new equipment or machinery. Capital improvements can be made to both residential and commercial properties.
Capital improvements are typically made with the intention of increasing the value of the property over the long term, as opposed to repairs or maintenance, which are intended to keep a property in good condition or to correct problems. Capital improvements are often made to attract new tenants or buyers, or to increase the rental income or resale value of a property. Capital improvements may also be made to meet the needs of a specific tenant or to comply with local building codes or regulations.