The cheapest handyman turned out to be the most expensive decision I made across 17 d
We manage 17 rentals. For the first few years I optimized maintenance the obvious way: find whoever would show up for the lowest hourly rate.
Last year I actually tracked it. Every call, every invoice, every return visit. The numbers weren't what I expected.
We spent about $31,000 on maintenance across the portfolio, roughly $1,825 per door. Around 28% of that, call it $8,700, wasn't the original job. It was the second trip. The faucet that leaked again three weeks later. The drywall patch that got redone. The "I'll come Tuesday" that turned into the following Monday, with a tenant emailing me every day in between.
Here's the part that changed how I think about it. My $45/hr guy averaged 1.6 trips and 6.5 total hours per completed repair. That's about $293 a job. The $85/hr guy averaged 1.05 trips and 2.8 hours. That's $238 a job.
The expensive one was 19% cheaper per finished repair, and I'd been choosing against him for two years.
Separately, late turnover work cost me 31 vacant days last year. At an average daily rent of $95 that's $2,945 straight off the top, which is more than I spend on repairs for an entire unit annually.
Three things I changed:
1) I track cost per completed job now, not hourly rate.
2) Any callback within 30 days gets logged against the original vendor. Two callbacks and they're out.
3) Turnover work gets scheduled before the tenant moves out, not after the keys come back.
Curious whether this holds up for anyone else or whether I just had a bad run of vendors.
Two questions:
What's your actual maintenance cost per door per year? Mine came in at $1,825 and I have no idea if that's high.
Does anyone else track callbacks separately, or is that just me being obsessive about a spreadsheet?
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Wow, I am impressed with you guys tracking everything! I agree anecdotally, but don't have the data to prove it. My plumber charges $250 per hour, but thats for a 2 man team. And they come with a van full of supplies, so there are no trips to Menards to get some fittings. And specially with plumbers, there is a big difference in how fast they work, because they don't have to "figure it out".
Over the last years we have re-renovated some properties I worked on 10+ years ago. Holey cow, did I cut some corners, do unnecessary things and made some really dumb choices!! And a big part of it was also the contractors I used to work with. The handyman type guys do work that looks a lot more DIY.
"Commercial grade" solutions come with a price, but companies know that in the long run they are more cost effective.