Tips to Reduce Maintenance and Repair Costs in Multifamily Units
Most multifamily housing owners, on average, reserve 15-20 percent of their annual budget for their property’s maintenance and repair. This amount, more often than not, increases or affects their profit margin. By taking smart steps, you can optimally use this portion of the budget and ensure your property stays in excellent condition by carrying out necessary repair and maintenance work. In addition, such initiatives are likely to make renters happy and retain them for long. On that note, here are five cost control tips for multifamily housing owners.
On that note, here are five cost control tips for multifamily housing owners.
1. Schedule Regular Preventive Maintenance Inspections
Did you know the easiest way to keep your car in great shape? It’s preventive maintenance. The same strategy applies to your property as well. Talk about HVAC units, roofing system, masonry, boilers or water tanks, regular maintenance prevent them from damages and you from bearing unnecessary costs. Take the example of a roof asset management program or RAMP, wherein contractors inspect the roof of your property twice in a year to prevent minor damages from snowballing into major issues, and help you save money in the future.
2. Use Quality yet Affordable Materials
While most of us get lured to cheap products with tall claims, when you are in business, price alone should not be the only determining factor at the time of buying materials. Consider the life-cycle of the products, compare the different prices, and then make a decision. For instance, did you know why most multifamily property owners choose carpet as a flooring option for their rental units? The simple reason is carpets are affordable, easy to replace, and last long.
3. Get Warranty for Appliances
Although purchasing a warranty for appliances may look like an additional expense rather than a cost control tip for multifamily housing, it can help save you a significant amount. The question is how? Renters use all the appliances such as refrigerators, ovens, and dishwashers, which you provide to them. Due to regular usage, the possibility of developing glitches or malfunctioning of these equipment is always there. As you don’t buy these items everyday, you would want to get warranties for them and save money on repair cost.
4. Tie up with More than One Vendor
As a multifamily property investor, ideally you should not rely on one vendor alone. You need to have a backup to ensure that maintenance and repairs always happen on time without having to affect the day-to-day living on the occupied units. If you are associated with only a sole source vendor, they can take advantage over time and may start overcharging for products and services compared to the market rates.
5. Choose Professional Services
Even if you have an in-house service team, more than a few services such as landscaping, masonry repairing, and roof maintenance require external help. What’s important is that you always hire a professional and reliable service provider. A professional company will always provide high-quality services, thereby ensuring that your property investment, whether you are repairing or renovating, and help you get adequate return.
Besides implementing the above multifamily housing cost control tips, you should take charge and often step in your property to check out if everything’s in place. Multifamily business is profitable, however, maintaining these properties requires efforts. Therefore, take all the necessary steps to help lower your business’ costs and maximize your profits.