As a property management company (PMC) owner, you’re well aware of the importance of maintenance in your operations. Maintaining properties is critical because it not only ensures the satisfaction of tenants but also contributes to maximizing profits. We recently sat down with Deb Newell to discuss just how important maintenance profit is — you can find that conversation here .
In this article, we’ll recap the various aspects of property management maintenance and how it can be a lucrative investment for companies in the industry.
Why Consider Adding Maintenance Services
Managing properties comes with the responsibility of addressing maintenance issues promptly. By offering maintenance services as part of their packages, property management companies can streamline the process of maintenance and provide a one-stop solution for property owners. This value-added service can set them apart from their competitors and attract more clients.
Adding maintenance services can also lead to increased revenue. By charging a premium for maintenance services, property management companies can generate additional income that contributes to their overall profits. Moreover, offering maintenance services allows companies to have better control over quality standards, ensuring that the properties they manage are well-maintained.
Furthermore, incorporating maintenance services can enhance the reputation of property management companies. By demonstrating a commitment to maintaining properties in top condition, these companies can build trust with property owners and tenants alike. This trust can lead to long-term relationships and positive word-of-mouth referrals, further expanding their client base.
Another advantage of providing maintenance services is the opportunity for property management companies to develop partnerships with trusted contractors and service providers. By establishing a network of reliable professionals, companies can ensure that maintenance tasks are carried out efficiently and to a high standard. This network can also be leveraged for other property management needs, creating a seamless experience for clients.
When and How to Hire Maintenance Techs Once a property management company decides to offer maintenance services, the next step is to hire qualified maintenance technicians. Determining when to hire maintenance techs depends on the scale of operations and the number of properties being managed.
For smaller property management companies, outsourcing maintenance work to reliable contractors may be a cost-effective option. However, as the company grows and takes on more properties, hiring in-house maintenance techs becomes a viable choice. Having dedicated maintenance techs allows for better control over scheduling and efficiency, ultimately leading to more satisfied clients.
When considering hiring maintenance techs, it’s crucial to assess the specific needs of the properties being managed. Different properties may require varying levels of expertise, from basic repairs and maintenance to specialized skills such as HVAC or plumbing. By evaluating the scope of work required for each property, property management companies can determine the number and types of maintenance techs needed to effectively address maintenance issues.
Furthermore, hiring in-house maintenance techs provides the opportunity to build a team that is familiar with the properties they are servicing. This familiarity can lead to quicker response times and more personalized service for tenants. Additionally, having an in-house maintenance team allows for easier coordination with property managers, streamlining communication and ensuring that maintenance requests are promptly addressed.
How to Determine an Hourly Maintenance Cost for Owners Property management companies need to ensure that maintenance costs are accurately calculated to maximize profits and maintain cost transparency with property owners. Assigning an hourly maintenance cost that reflects the actual expenses can achieve this.
Calculating the hourly maintenance cost involves considering various factors such as labor , materials, and overhead expenses. By accurately determining these costs, property management companies can provide property owners with transparent invoices and maintain a healthy profit margin.
One crucial aspect to consider when determining the hourly maintenance cost is the skill level of the maintenance personnel involved. Skilled tradespeople may command higher hourly rates due to their expertise and experience, which can impact the overall maintenance cost. Property management companies need to factor in these varying skill levels to ensure that the hourly rate accurately reflects the quality of work provided.
Additionally, the type of maintenance required can also influence the hourly cost. Routine maintenance tasks such as landscaping or cleaning may have lower hourly rates compared to specialized repairs or emergency services. Property managers should categorize maintenance tasks based on complexity and urgency to assign appropriate hourly rates, ensuring that owners understand the breakdown of costs for each service provided.
Top Five KPIs for Maintenance Technicians Maintenance technicians are the backbone of property management maintenance, ensuring that buildings and facilities are kept in optimal condition. Their role is critical in upholding the safety, functionality, and aesthetics of the properties they oversee. To effectively evaluate the performance of maintenance technicians and maintain the quality of maintenance services, it is imperative to track key performance indicators (KPIs) that provide insights into their efficiency and effectiveness.
The five maintenance KPIs that Evernest tracks are:
Work 40, bill 38: All of our maintenance techs are expected to report 38 billable hours each week. Drive safe and be safe: Our techs are expected to prioritize safety. Communicate effectively: This is especially important when in the field. Photos and notes on every work order: We don’t accept incomplete reports from techs. Accounting for all materials: Our techs also input all materials for seamless oversight. These five work well for us, but the right KPIs will depend on your company’s size, structure, and goals.
When Can a Property Management Company Hire Full-Time Specialty Tradesman? While maintenance techs can handle a wide range of maintenance tasks, there are instances where specialized skills are required. In such cases, property management companies may consider hiring full-time specialty tradesmen.
The decision to hire full-time specialty tradesmen depends on the frequency and complexity of specialized tasks. If certain maintenance tasks occur regularly and require expertise beyond what maintenance techs can provide, it may be more cost-effective to have an in-house specialist. This allows for quicker response times and ensures that maintenance issues are resolved efficiently.
Pro tip: Deb recommends visiting home improvement retailers when you’re ready to find top-tier maintenance pros. Strike up a conversation and work to recruit some of the best you see regularly.
Final Thoughts: Property Management Maintenance Property management maintenance can be a profitable venture for companies within the industry. By adding maintenance services, property management companies can differentiate themselves from competitors, generate additional revenue, and maintain better control over quality standards. Calculating hourly maintenance costs accurately, monitoring key performance indicators, and considering hiring full-time specialty tradesmen when required are all important aspects of running a successful property management maintenance operation. By investing in maintenance, property management companies can maximize profits while providing excellent service to their clients.
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