Mothballing is a process by which certain properties or assets are temporarily put out of service. This process can be used to protect assets and equipment when they aren’t currently in use or needed. Many businesses will mothball their properties when they are undergoing renovations or not actively operating, so that the property and its contents remain intact until it is ready to be used again.
Let’s take a look at what mothballing means and when you might need to do it.
The Benefits of Mothballing
Mothballing can provide several benefits for businesses, including protection from vandalism and theft and cost savings on utilities such as electricity, water, and gas. By turning off the utilities and sealing up the property, you can avoid having to pay for utilities that you aren’t using, as well as save money on security costs. In addition, mothballing can help preserve the value of the assets by preventing them from being exposed to extreme temperatures or humidity levels that could cause damage over time.
When Should You Mothball?
Mothballing should only be done if there is no immediate plan to use the property in the near future. Generally speaking, mothballs should be used for periods of months—not years—since items stored in a mothballed state may degrade over time due to lack of maintenance or repair.
For example, if you’re undergoing a renovation project that will take several months but don’t want to lose your existing inventory during that time period, then mothballing may be a good option. In addition, if you own an office building that isn’t currently rented out but may become rented again soon enough, then mothballing could help protect your investment until that happens.
In summary, mothballing is an effective way for businesses to protect their properties when they aren’t actively using them or planning to use them in the near future. By turning off all utilities and sealing up the entrances and exits of your building or asset storage site(s), you can keep your investments safe from any potential threats while also saving money on utility bills throughout this temporary period of disuse.
For business owners who anticipate needing their properties again within a few months’ time frame but don’t want them exposed in between now and then; mothballing can provide an ideal solution!