Purchasing / Budgeting

Understanding NOI for Maintenance Pros

Name: Understanding NOI for Maintenance Pros
Uploaded: 2025-07-14T12:46:20Z
Duration: 2 min 28 s
Description: Net Operating Income (NOI) isn’t just a finance term — it’s how maintenance teams drive real value. In this video, learn how your day-to-day decisions impact the property’s bottom line. From cost-saving repairs to resident satisfaction, your work plays a key role in boosting NOI and increasing property value.

Net Operating Income (NOI) isn’t just a finance term — it’s how maintenance teams drive real value. In this video, learn how your day-to-day decisions impact the property’s bottom line. From cost-saving repairs to resident satisfaction, your work plays a key role in boosting NOI and increasing property value.

Budget

Maintenance

Supervisor

Travis Everett

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Transcript

Hello everyone. Thank you for joining me today. If you watch video one, we spoke a little bit about ROI for this video, we're going to discuss NOI. So we're gonna start with something simple and relatable definition, right? NOI stands for net operating income. Think of it as what's left after the property pays all of its bills.

Here's the basic formula for NOI. So NOI will equal income, Midas operating expenses. That's rent and fees coming in, minus all the costs it takes to run the property, including maintenance. Position maintenance as a cost driver and a cost controller. Maintenance expenses are one of the biggest controllable parts of a property's budget.

That means our choices matter. The way we respond to service tickets, the vendors we use, the systems we will maintain. All of it affects NOI. So to tie the day-to-day actions to NOI performance, or let's say you do a proactive HVAC tuneup, your building avoids a $10,000 emergency replacement. That's NOI saved.

You just saved your owner that much money. If you spot and fix a small leak before it causes mold. You just refunded thousands of dollars in remediation and downtime for the unit. So right now we're going to emphasize the budget without fear, so you don't have to be accounted, but it helps to know the dollar flows when you choose a solution that balances cost, durability, and speed.

You're boosting NOI. A 20 part that extends equipment life by year. That's a smart move. Let's do it. So what we can do now is to show how good maintenance improves income too. NOI isn't just about cutting costs. It's also about keeping income steady. That means happy residents and well-maintained homes.

Quick responses to service calls equals better reviews, less turnover, and more lease renewals that keeps income high and vacancy low. To close this out on NOI every work quarter, every inspection, every suggestion you make, it all affects NOI. That's financial impact. When NOI goes up, property value increases, and when the property wins, we all win.

Thank you for joining me for video two, our next video. We're gonna tie this all together. Have a great day.