A property manager’s worst nightmare is to have a sudden equipment breakdown and not be financially or mentally prepared for it. Below is a guide that will help mitigate the effect of such a problem should it occur.
Step 1
Assess the condition of the property
Do a thorough inspection of the property to identify any existing or potential maintenance issues. Create an inventory of all the major building components and their condition and lifespan. This will give an accurate evaluation of each component and when its replacement or repair will be required.
Step 2
Develop a maintenance plan
Once the assets have been identified and recorded, a comprehensive maintenance plan that schedules recurring tasks should be developed. These include plumbing checks, HVAC servicing, roof inspections and electrical reviews. Prioritizing the systems that are critical is important, because their failure could lead to significant costs.
Step 3
Estimate maintenance costs
There are many methods available for estimating maintenance costs, with the simple rule of thumb being a certain percentage of rental income on maintenance. Using industry averages or quotes from contractors can also be used for specific issues.
Step 4
Create a Capital contingency and reserve fund
Set aside a contingency fund with a small amount of money to be used for minor repairs such as leaks and breakages. A reserve fund, on the other hand, is a larger amount of money set aside for capital improvements or replacements such as a new roof. The amounts for each fund are relative to the project.
Step 5
Prioritize the urgency of projects
Address urgent repairs immediately to prevent them from escalating into larger issues. Incorporate long term planning for capital improvements or large-scale projects that may not fall under annual maintenance but are important for the property’s upkeep.
Step 6
Implement software for tracking
Having applicable software or tools for maintenance scheduling, expense tracking and budgeting is very useful as it streamlines the process, improves accuracy and reporting and makes efficient use of resources.
Step 7
Review and adjust
Do an annual review of the maintenance needs and budgets based on new inspections and cost updates. The budget should also be reviewed and adjusted taking into consideration inflation, new regulations and property expansions.
We have a comprehensive property management service where we handle every occupational and operational detail of property management. Find out more by contacting us or calling us on 604 695 1000.
A Guide For Property Managers On How To Handle Future Maintenance Projects.
A property manager’s worst nightmare is to have a sudden equipment breakdown and not be financially or mentally prepared for it. Below is a guide that will help mitigate the effect of such a problem should it occur.
Step 1
Assess the condition of the property
Do a thorough inspection of the property to identify any existing or potential maintenance issues. Create an inventory of all the major building components and their condition and lifespan. This will give an accurate evaluation of each component and when its replacement or repair will be required.
Step 2
Develop a maintenance plan
Once the assets have been identified and recorded, a comprehensive maintenance plan that schedules recurring tasks should be developed. These include plumbing checks, HVAC servicing, roof inspections and electrical reviews. Prioritizing the systems that are critical is important, because their failure could lead to significant costs.
Step 3
Estimate maintenance costs
There are many methods available for estimating maintenance costs, with the simple rule of thumb being a certain percentage of rental income on maintenance. Using industry averages or quotes from contractors can also be used for specific issues.
Step 4
Create a Capital contingency and reserve fund
Set aside a contingency fund with a small amount of money to be used for minor repairs such as leaks and breakages. A reserve fund, on the other hand, is a larger amount of money set aside for capital improvements or replacements such as a new roof. The amounts for each fund are relative to the project.
Step 5
Prioritize the urgency of projects
Address urgent repairs immediately to prevent them from escalating into larger issues. Incorporate long term planning for capital improvements or large-scale projects that may not fall under annual maintenance but are important for the property’s upkeep.
Step 6
Implement software for tracking
Having applicable software or tools for maintenance scheduling, expense tracking and budgeting is very useful as it streamlines the process, improves accuracy and reporting and makes efficient use of resources.
Step 7
Review and adjust
Do an annual review of the maintenance needs and budgets based on new inspections and cost updates. The budget should also be reviewed and adjusted taking into consideration inflation, new regulations and property expansions.
We have a comprehensive property management service where we handle every occupational and operational detail of property management. Find out more by contacting us or calling us on 604 695 1000.