Preventative Maintenance and the Costs of Its Absence

The Hidden Costs of Not Having a Preventative Maintenance Program—and How to Fix It

Preventative maintenance is the foundation of any well-run property management operation. Yet, many multifamily operators lack a proactive system, opting instead for reactive maintenance that focuses on fixing issues as they arise. While this may seem cost-effective in the short term, it leads to higher costs, increased emergencies, and diminished property value over time.

In this article, we’ll explore the costs of not having a preventative maintenance program, outline the steps needed to implement one effectively, and calculate the potential ROI for a 2,500-unit portfolio. We’ll also show how AppWork’s platform simplifies the process, helping properties save time, money, and stress.

The Costs of Ignoring Preventative Maintenance

Without a preventative maintenance program, properties face several challenges:

Increased Emergency Repairs
Small issues, like a leaky pipe, can escalate into expensive emergencies if not addressed early. Emergency repairs often cost 3-4 times more than preventative fixes.

Accelerated Wear and Tear
HVAC systems, plumbing, and other major assets deteriorate faster without regular inspections and maintenance, leading to premature replacements and higher capital expenditures.

Reduced Resident Satisfaction
Frequent breakdowns and slow resolutions frustrate residents, impacting renewals and occupancy rates.

Higher Work Order Volume
A lack of recurring maintenance creates unnecessary reactive work orders, increasing the workload for maintenance teams and reducing their efficiency.

Decreased Property Value
Deferred maintenance can lead to structural damage and safety concerns, lowering the overall value of the property.

What Makes an Effective Preventative Maintenance Program?

To avoid these pitfalls, operators need a robust preventative maintenance system. Here’s how to set one up:

1. Conduct Regular Inspections

   • Purpose: Identify issues before they become emergencies.
   • Frequency: Inspections should occur quarterly or semi-annually for critical systems like HVAC, plumbing, and electrical.
   • Tools: Use a digital inspection platform to track results and connect findings to work orders seamlessly.

2. Track the Right Data

   • What to Track: Equipment age, repair history, and inspection notes.
   • Why It Matters: Knowing the history of your assets helps prioritize repairs and replacements.

3. Set Up Recurring Work Orders

   • Examples:
   • HVAC filter replacements every 3 months
   • Roof inspections after heavy storms
   • Seasonal checks for irrigation systems and boilers
   • Impact: Recurring work orders ensure essential tasks aren’t overlooked, reducing the likelihood of costly failures.

4. Use Recurring Inspections and Work Orders Together combing recurring inspections with automated work orders to create a feedback loop. For example, an HVAC inspection can automatically trigger a repair work order if issues are identified.

The Benefits of Preventative Maintenance

An effective preventative maintenance program delivers significant benefits:

• Fewer Emergency Repairs: Proactive maintenance can reduce emergency repairs by up to 50%, saving time and money.
• Lower Work Order Volume: Preventative measures decrease reactive work orders, freeing up maintenance teams to focus on high-priority tasks.
• Extended Asset Life: Regular maintenance extends the lifespan of key systems like HVAC, saving thousands in capital expenses annually.
• Improved Resident Satisfaction: A well-maintained property means fewer disruptions for residents, boosting renewals and occupancy rates.

ROI for a 2,500-Unit Portfolio

Let’s calculate the potential savings for a 2,500-unit portfolio:

Emergency Repairs

• Without preventative maintenance, operators might face 50 emergency repairs annually, averaging $2,000 per repair.
• Preventative measures could reduce this by 50%, saving $50,000 annually.

Work Order Volume

• Assuming 3 work orders per unit annually, that’s 7,500 work orders.
• A preventative system could reduce this by 20%, saving 1,500 work orders.
• At an average of $25 per work order, that’s $37,500 annually.

Extended Asset Life

• Replacing an HVAC system for 250 units prematurely could cost $500,000.
• Preventative maintenance extending its life by just 2 years could save $250,000 annually.

Total Annual Savings: $337,500

How AppWork Simplifies Preventative Maintenance

AppWork’s platform is designed to help multifamily operators build and maintain an effective preventative maintenance program. Here’s how:

Seamlessly Connected Inspections and Work Orders
AppWork’s inspection platform integrates directly with work orders, ensuring that issues identified during inspections are automatically flagged and addressed.

Recurring Inspections and Work Orders
Set up recurring schedules for inspections and routine tasks, so nothing falls through the cracks. AppWork automates these processes, saving time and reducing oversight errors.

Comprehensive History Tracking
Technicians and managers can access detailed histories of assets, repairs, and inspections, helping them make informed decisions and prioritize tasks.

Data-Driven Insights
AppWork provides analytics to help operators track trends, identify recurring issues, and optimize maintenance strategies over time.

Improved Resident Experience
Faster resolutions and fewer emergencies create a better living environment for residents, increasing satisfaction and retention.

How AppWork Specifically Drives ROI for Preventative Maintenance

AppWork doesn’t just help you set up a preventative maintenance program—it enhances the ROI by making it smarter, more efficient, and easier to manage. Here’s how:

• Reduced Emergency Costs: Preventing 50% of emergency repairs in a 2,500-unit portfolio can save $50,000 annually.
• Lower Administrative Burden: Automating recurring inspections and work orders eliminates hours of manual scheduling, saving $6,250 in labor costs annually.
• Increased First-Time Fix Rates: Lowering callback rates by just 10% can save another $18,750 annually.
• Extended Asset Life: Adding just 2 years to the lifecycle of an HVAC system for 250 units can save $250,000 annually.
• Improved Resident Retention: A modest 2% increase in retention across 2,500 units could save $125,000 annually.

Total ROI of AppWork for Preventative Maintenance: $450,000+ Annually

By integrating AppWork into your preventative maintenance strategy, you’re not only ensuring the health of your property but also maximizing cost savings, boosting efficiency, and improving resident satisfaction.

Proactive Maintenance Saves Money and Stress

The costs of ignoring preventative maintenance are too high for multifamily operators to overlook. By implementing a preventative maintenance program, properties can save thousands in emergency repairs, reduce work order volumes, and extend the life of critical assets.

With AppWork, building and managing a preventative maintenance program is simple and effective. Operators can save hundreds of thousands of dollars annually while improving operational efficiency and resident satisfaction.

Ready to take control of your maintenance operations?

Contact us today to learn how AppWork can help your properties thrive.

AppWork was created by property managers who understand the real challenges of running multifamily communities. Having worked in the industry, AppWork designed solutions to streamline operations, empower maintenance teams, and enhance efficiency. With tools like work order tracking, digital make ready boards, and advanced inspection software, AppWork helps communities stay organized and proactive. Discover how AppWork can transform your property management processes and improve tenant satisfaction.