Actionable Steps to Retain your Owners: Part 2
In Part #1 of Actionable Steps to Retain your Owners, we covered tips to improve your communication process with owners. Now, let’s take it a step further by exploring how you can provide the best-in-class maintenance experience for your owners.
Cut repair costs by implementing preventative maintenance processes.
Let’s do some math on the cost of being reactive with maintenance. For example, in the sweltering summer months of the southern U.S., HVAC repairs sky-rocket due to heavy strain on A/C units.
There is a higher demand for repairs, with limited supplies and a vendor shortage. This hectic season results in a 123% increase in repair invoices, with winter being drastically lower on average.
Let’s assume the average A/C repair cost is $500. With a 123% invoice increase ($615) during the summer, that same repair invoice is now $1,115. This means your owner is paying $1.68 a day for a repair in the high-demand season.
Now, imagine you have 300 managed units and 50% of the A/Cs fail in the summer. That is an extra $138,375 that your owners and investors will be paying for reactive maintenance.
By implementing preventative maintenance programs, you’ll remove the hassle of making a costly emergency repair down the road and risking owner satisfaction. Start by scheduling simple preventative tasks like HVAC system inspections and replacing HVAC air filters every quarter.
An HVAC air filter costs about $20, and very little time is required to install it. Additionally, if you schedule HVAC inspections in the off-season of low demand, you can save hundreds of dollars in repairs compared to a high-demand season.
Staying proactive on maintenance will prolong the life of your equipment and help your team keep tabs on when it is time to replace them. In another blog post, we share tips on HVAC preventative maintenance.
The goal of a profitable property management company is no longer just managing the property.
As the industry becomes more advanced, the shift towards the importance of maintenance on owner retention will be the prevailing mindset of the future.
Say you’re making $3,900 a year in profit from a single owner, and they decide to leave. That’s $10.68 a day in lost revenue. ($3,900/365).
If they stayed for 3 years instead of the industry average of 5 years, you’re looking at $7,800 in potential profit loss.
5 x $3,900 = $19,500
3 x $3,900 = $11,700
$19,500 – $11,700 = $7,800 profit loss
Now, if you lose 6 owners in a given year with the same profit potential, you’ll see $128.21 lost in a single day, or $46,800 a year in potential profit from your owners!
The other issue? Time equals money. With many property management companies short-staffed, it is becoming increasingly challenging to stay on top of daily maintenance-related tasks, let alone spend time trying to acquire a new owner.
If you’re concerned about time or staff capacity to handle your maintenance-related tasks, we’re here to tell you that you no longer have to stress. With the power of automation, you can streamline your maintenance process without lifting a finger.
Take control of your owner retention once and for all.
Subscribe to Meld Insights Weekly
Join our weekly newsletter where we will share industry insights and maintenance tips derived from our software’s clean data.