We get it—keeping your properties in tip-top shape while ensuring profitability and owner satisfaction can feel like walking a tightrope. But here’s the secret: you can drive profits through maintenance without compromising on owner satisfaction. Let’s dive into how you can lower maintenance costs, boost efficiency, and keep those profits rolling in, all while keeping your property owners happy.
Download our comprehensive guide to maximize maintenance profits, while maintaining owner retention.
The Balancing Act of Maintenance Spending
Did you know there’s a sweet spot for maintenance spending? Data shows that once your maintenance costs exceed 12% of your rent roll, owner churn starts to climb. That’s right—spend too much, and you might see your property owners heading for the exits.
So, how do you increase maintenance profitability without driving your property owners away? The answer lies in driving down your maintenance costs while boosting efficiency and productivity. Let’s break down how to do just that.
How to Lower Maintenance Costs
Maximizing the productivity of your maintenance technicians can significantly lower your maintenance costs. Here’s how:
- Better Technician Utilization: Make sure your technicians are making the most of their work hours. This not only maximizes productivity but also ensures you’re getting more value from their wages.
- Faster Issue Resolution: The more jobs your technicians complete in a day, the quicker maintenance issues are resolved. This leads to happier residents and higher retention rates.
Small improvements can lead to massive gains. Even a 10% increase in technician utilization can have a significant impact on your annual revenue.
Speeding Up Vendor Services
A robust vendor network is crucial. You want vendors who can deliver quality work quickly and at a fair price. To gauge how your vendors stack up against the market, aim for a vendor health score of 85-115, where 100 is the market median.
Embracing Preventative Maintenance
Preventative maintenance is a game-changer. Regular inspections and timely servicing can nip potential issues in the bud, preventing costly repairs down the line. This proactive approach not only saves on labor and materials but also extends the lifespan of your assets. Plus, it keeps both residents and investors smiling.
Tracking Maintenance Spend Per Unit
If you can boost your technician throughput, improve your vendor network, and embrace preventative maintenance, you should see a decrease in your annual maintenance spend per unit. This is a key indicator of investor satisfaction. Lowering this number is a surefire way to strengthen your relationships with investors.
The Property Meld Advantage
With Property Meld, tracking crucial maintenance KPIs is a breeze. Keeping an eye on these metrics is essential for making strategic improvements that boost profitability. Plus, sharing these metrics with owners is a fantastic way to demonstrate the value you bring to the table.
Lowering maintenance costs while maximizing profitability and retention doesn’t have to be a juggling act. By increasing technician throughput, improving vendor speed, and implementing preventative maintenance practices, you can drive down costs and keep your property owners happy. Remember, a well-maintained property is a profitable property, and Property Meld is here to help you every step of the way.
