Controlling Maintenance Costs & Maximizing ROI

Last Updated: February 6, 2025Published On: February 5, 2025

This article is based on insights shared during a recent PURE Property Management webinar, where industry experts Jock McNeill and Shannon Daugherty, director of maintenance with PURE Property Management, discussed strategies for controlling maintenance costs and maximizing return on investment.

Owning a rental property is a long-term investment, and maintenance plays a critical role in protecting that investment. Many investors focus on rent collection and property appreciation, but controlling maintenance costs can make a significant difference in profitability. At PURE Property Management, we know that a well-maintained property keeps residents happy, reduces turnover, and ultimately leads to higher returns.

As Jock McNeill puts it, maintaining a positive resident experience is key: “A positive resident experience leads to less turnover. Turnover is expensive.”

The Value of Proactive vs. Reactive Maintenance

Many property owners only think about maintenance when something breaks, but a proactive approach saves money and prevents unexpected emergencies. We break property maintenance down into three categories:

Routine Maintenance

Small, ongoing tasks—like cleaning gutters and replacing air filters—can prevent major repairs. Being proactive means staying ahead of potential issues before they escalate. “Get ahead of any potential problems that could come up,” advises Shannon Daugherty.

Preventative Maintenance

Investing in preventative maintenance, such as seasonal HVAC servicing or routine inspections, helps avoid costly emergencies down the line. Shannon emphasizes the long-term benefits: “Think ahead… I’m preserving my property value in the long run.”

Emergency Maintenance

Emergency repairs in rental properties are not only stressful but also significantly more expensive than routine maintenance. While some emergencies are unavoidable, many stem from neglected preventative maintenance. Proactive planning and a consistent maintenance schedule can significantly reduce the likelihood of these costly surprises.

Common Maintenance Requests and Costs

Not all maintenance issues are equal. Some repairs are far more common—and costly—than others. At PURE, a significant number of requests relate to plumbing and HVAC. “763 of our after-hours calls were for plumbing and 746 for HVAC in Q3,” says Shannon, underscoring how frequent these issues are.

Rising Costs

The cost of repairs continues to climb, making proactive maintenance even more valuable. Central air repair costs have increased by 21%, while heating repair costs have risen by 41%. According to Shannon, “The cost of goods and services is going up,” making proactive maintenance even more essential.

The Importance of Vendor Relationships

The right vendors are essential to controlling maintenance costs and ensuring quality work. PURE Property Management only works with licensed, insured, and reliable vendors.

Why Vetting Vendors Matters

Poor vendor choices can lead to legal and financial risks. In one case, a vendor without proper licensing repaired a balcony railing. The faulty repair later caused a severe injury, leading to a lawsuit against the owner, vendor, and property management company. “It’s the truth of what could happen if your vendors are not appropriately vetted,” warns Shannon.

Balanced Cost Management

A good vendor isn’t necessarily the cheapest, but one who provides reliable service at a fair price. As Shannon explains, “We don’t necessarily want to find the cheapest vendors… we want that middle-of-the-road company that offers good service.”

Budgeting for Maintenance Expenses

Setting Aside Funds and Long-term Benefits

A smart investor plans for maintenance costs, ensuring that both immediate and future expenses are covered. PURE recommends:

  • Allocating 1.5% of the property’s value annually for major repairs.
  • Keeping one month’s rent aside for unexpected expenses.

Jock McNeill emphasizes the importance of this approach, stating, “Preventative maintenance is not an expense, it’s an investment.” A well-maintained property not only keeps residents happy and reduces vacancies but also prevents major repair costs down the road.

The Role of Property Managers

How PURE Adds Value

A well-organized property manager ensures efficient record-keeping, vendor management, and resident communication. “Keeping all that stuff together is really important,” says Jock McNeill, emphasizing the benefits of structured property management.

PURE’s professional handling of maintenance issues allows investors to focus on growing their portfolios. “We deal with the residents so that you don’t have to,” Jock explains.

Increasing Trip Charges

It’s becoming rare for vendors to provide free estimates. “Gone are the days of vendors going out to a property and giving you a bid for free,” Shannon notes.

EPA RRP Compliance

Regulations around lead-based paint are tightening, making compliance essential. “The EPA is out there and they are auditing all across the United States,” Shannon warns.

Disaster Preparedness and Property Maintenance

When disasters strike—whether hurricanes, fires, or floods—property managers must be prepared. PURE takes a proactive approach to protecting properties and residents. “We prepare well in advance… residents, investors, and properties are our priorities,” says Shannon.

Conclusion

A well-managed property isn’t just about collecting rent—it’s about ensuring long-term success through smart maintenance practices. Investors who prioritize proactive maintenance and work with a professional property management team see the best results.

Jock McNeill puts it simply: “Professional property management can increase the joy of investing.”

PURE Property Management simplifies property ownership with expert maintenance strategies, strong vendor relationships, and a resident-first approach. To learn more, visit blog.rentpure.com.

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