Home Maintenance Program - Ideas, Suggestions, - Contractor Talk - Professional Construction and Remodeling Forum

plazaman · 09-12-2009, 11:57 AM

A Client suggested that we should expand our business into home maintenance. She mentioned, that if we could sign 50 clients up @ $1,000 a piece, we have $50,000 to play with. Within her community alone, I’m pretty sure we can sign that.

We perform most of the work for these clients, everything from minor handyman jobs to full renovations, additions.. Etc.. The main problem I see at this point, is because we are getting the larger jobs, we overlook small repairs/services calls. Meaning…. We don’t charge for the service. Yes, I do understand, we are losing money here, and I want to fill this void. Im pretty sure you guys understand where I am coming from.

The biggest is problem I seen so far is trying to develop a system that works for us. Lets assuming the buy in for the program is $1000 per year, Ok so where do we proceed from there?
Do we do an initial punch list before entering the problem to eliminate possible calls down the road? What about pricing service calls? Hourly? Job? ..

Dad has been in the business for over 24 years, we have tons of clients.

Any Suggestions Greatly Appreciated.

plazaman · 09-15-2009, 03:48 PM

....

72chevy4x4 · 09-15-2009, 05:14 PM

bill on a monthly basis-show up twice per month and work on a punch list towards the 'x' number of hours. stop at the designated hours or with HO permission continue at additional 'Y' hourly rate. The rest of the program will cost ya!

SLSTech · 09-15-2009, 06:11 PM

I wish I could find the article I read about 4 or 5 years ago - I am still working it out

Per the article the company charged 695 which included 2 visits a year, 3 or 4 hours for a scheduled list of upkeep tasks & 1 hour of the HO's choosing (install towel bar, etc...)

Here is one I found that might get you started http://www.remodeling.hw.net/business/a-fine-fix.aspx

Let me know how it goes, I want to have my program up & running by January 1st (of course I said that last year to)

davitk · 09-15-2009, 06:28 PM

It sounds great, similar to a lawn mowing/snow removal annual contract for basic "upkeep"?

I would include a thorough annual or semi-annual inspection as part of the package, in the proccess creating your own Honey Do list.

Keep us posted, I may rip you off.

Edit: The inspection is included in the contract, the Honey Do list projects get charged for, each and every one.

plazaman · 09-16-2009, 08:33 PM

Quote:

Originally Posted by SLSTech

I wish I could find the article I read about 4 or 5 years ago - I am still working it out

Per the article the company charged 695 which included 2 visits a year, 3 or 4 hours for a scheduled list of upkeep tasks & 1 hour of the HO's choosing (install towel bar, etc...)

Here is one I found that might get you started http://www.remodeling.hw.net/business/a-fine-fix.aspx

Let me know how it goes, I want to have my program up & running by January 1st (of course I said that last year to)

thanks for the find.

Do you happen to have a check list? I mean, I know what needs to be checked, but id like to see list as well.

SLSTech · 09-16-2009, 09:24 PM

I am still working on mine (I am working on posting a monthly checklist for Homeowners on my blog right now - Sept's is up). You do have to vary it per each house though - some require ceramic tile sealing, others don't - how many smoke alarms, caulking where, etc... so a 1 price fits all won't really fly, unless you have a base list & do add-on's for sealing tile, over 100 LF of caulking, etc...

One item to consider is a tie in with maybe an HVAC company so they can do their semi-annual or annual checkup / cleaning at the same time

davitk · 09-16-2009, 09:45 PM

Quote:

Originally Posted by plazaman

thanks for the find.

Do you happen to have a check list? I mean, I know what needs to be checked, but id like to see list as well.

Adapt a Home Inspection checklist similar to this http://www.americanhomeinspectordire...checklist.html .

What I would do is offer a semi-annual inspection for 500.00 or so, and sell it as performing a "home check up" and spend four or five hours every six months creating a list of current and pending maintenance and repairs, which could be priced out or offered done on a T & M basis.

Offering a maintenance contract on an entire home IMHO is paramount to writing a remodel contract with no exclusions and not using change orders. How could you make any money?

modterry · 09-17-2009, 07:16 AM

Go to PC Plumber's profile and see all of his posts. He is a whiz at maintenance programs and offers great advice and helpful sales techniques.

I think it is a great idea for you. It is a numbers game. Right now I think that is where the market is for most people right now. Just fix and maintain their property.

Terry

SLSTech · 09-17-2009, 08:21 AM

Quote:

Originally Posted by davitk

Adapt a Home Inspection checklist similar to this http://www.americanhomeinspectordire...checklist.html .

What I would do is offer a semi-annual inspection for 500.00 or so, and sell it as performing a "home check up" and spend four or five hours every six months creating a list of current and pending maintenance and repairs, which could be priced out or offered done on a T & M basis.

Offering a maintenance contract on an entire home IMHO is paramount to writing a remodel contract with no exclusions and not using change orders. How could you make any money?

The main idea is to offer a contract that takes care of routine maintenance that should be done but hardly is - either giving the HO more leisure time or doing something that they no longer are able to. (caulking around windows, sealing exterior air leaks, sealing tile, changing filters, batteries in smoke detectors, etc...) You have to have a clearly defined list & exclusions set into it.

As an FYI - you can get in trouble in most states for offering a "home check up" without being licensed as a home inspector. That is not to say - while your there & cleaning out the gutters that you might not notice the hail damage, etc...

davitk · 09-17-2009, 01:30 PM

Quote:

Originally Posted by SLSTech

As an FYI - you can get in trouble in most states for offering a "home check up" without being licensed as a home inspector. That is not to say - while your there & cleaning out the gutters that you might not notice the hail damage, etc...

Really? You must be thinking of real estate law, not home improvement law.

innovous · 09-18-2009, 03:49 PM

Saw this on another site, thought I would post it as fyi...hope it helps

"The American Society of Home Inspectors advises homeowners to budget .75% of a home's value for annual maintenance for homes less than 10 years old. That jumps to 1.5% for homes in their second decade and 3.0% for homes in the third decade."

plazaman · 09-20-2009, 05:57 PM

Quote:

Originally Posted by innovous

Saw this on another site, thought I would post it as fyi...hope it helps

"The American Society of Home Inspectors advises homeowners to budget .75% of a home's value for annual maintenance for homes less than 10 years old. That jumps to 1.5% for homes in their second decade and 3.0% for homes in the third decade."

Wow, good piece of info there. Only if these home owners actually follow through, they wouldnt have major problems down the road

rselectric1 · 09-20-2009, 06:52 PM

The posters are right on track. Be careful and hire a good lawyer to make sure the rules are in place. Don't get stuck replacing a $5000 condensor unit due to poor "fine print". The idea is great but as several posters suggested, place alot of stock in the details of your agreements with your clients. They will always try to get you to fix a decades old problem for "free". Be careful.

Angdeer · 09-21-2009, 01:00 PM

Does sound like a money maker but good luck working out the kinks.

plazaman · 09-21-2009, 06:19 PM

My advantages now are:

I have an established business already.
I have every possible tool known to man lol
I have large clientele base
All license & insurances & WC are in place

I have an idea what to cover and what Im trying to sell, I trying to figure out if materials are to be bought, how will i be compensated or what if anything at all should be included.

GrasshopperPete · 09-22-2009, 04:08 AM

Quote:

Originally Posted by plazaman

My advantages now are:

I have an established business already.
I have every possible tool known to man lol
I have large clientele base
All license & insurances & WC are in place

I have an idea what to cover and what Im trying to sell, I trying to figure out if materials are to be bought, how will i be compensated or what if anything at all should be included.

I think your idea is sound and makes sense...but it is the kind that makes sense and the immediate benefit can be seen by facility managers and other property managers and pro construction folks.

I also think the average homeowner may not see the benefit of of such a plan and if they signed up would just lie in wait to play the gotcha game and try to milk it for all they could.

Even unreasonable tasks like ext foundation repair, rewiring the whole house due to old (cloth) wiring, replacing miles of pipe because if one piece is full of crusted sediment it stands that all that was placed at the same time is in the same condition.

Or replace the entire driveway because of a few cracks. How about leaky roof callbacks until you`ve replaced most of the roof.

Call backs being their workaround to your hourly limit.

I think you would have to have a list of exclusions a mile long or they would wake up hunting wabbitt and you`re the wabbit.

Now, if you changed the potential customer pool to small businesses that don`t have an inhouse maintenance team.....

plazaman · 09-22-2009, 06:41 PM

Quote:

Originally Posted by GrasshopperPete

I think your idea is sound and makes sense...but it is the kind that makes sense and the immediate benefit can be seen by facility managers and other property managers and pro construction folks.

I also think the average homeowner may not see the benefit of of such a plan and if they signed up would just lie in wait to play the gotcha game and try to milk it for all they could.

Even unreasonable tasks like ext foundation repair, rewiring the whole house due to old (cloth) wiring, replacing miles of pipe because if one piece is full of crusted sediment it stands that all that was placed at the same time is in the same condition.

Or replace the entire driveway because of a few cracks. How about leaky roof callbacks until you`ve replaced most of the roof.

Call backs being their workaround to your hourly limit.

I think you would have to have a list of exclusions a mile long or they would wake up hunting wabbitt and you`re the wabbit.

Now, if you changed the potential customer pool to small businesses that don`t have an inhouse maintenance team.....

Grass, You are right, I will have to have a list of exclusions. But that kinda sounds more like more in terms of a home warranty. I am basically selling hours of labor to complete certain task around the home.

Question for you guys.... I am basically selling x amount of hours for a list of areas i cover, how do I handle material purchases and timing?

SLSTech · 09-22-2009, 06:58 PM

Quote:

Originally Posted by plazaman

Grass, You are right, I will have to have a list of exclusions. But that kinda sounds more like more in terms of a home warranty. I am basically selling hours of labor to complete certain task around the home.

Question for you guys.... I am basically selling x amount of hours for a list of areas i cover, how do I handle material purchases and timing?

I still can't find that article sorry - but it was all worked in the price (i.e. a couple of 9 volts for the smoke detectors, a couple of AC filters, so many tubes of caulk, etc...) Lets say you do that 4 / 5 hour one I listed earlier - you throw in 5 bucks for misc screws, etc... they should have the towel bar they want installed, if it requires something over $5 - they pay cost + ?

wizendwizard · 09-22-2009, 07:06 PM

This was exactly how I established the Home Maintenance Services portion of my company. I am charging xxx.xx per year for monthly inspection services on rental properties. I've had this running for over a year now and have 22 in state clients and 8 out of state clients.

I do a monthly inspection of 80 points in and around the home. This includes changing filters and gutter cleaning. I also offer pressure washing on the property every 6 months and supply a monthly report.

If I find things that need to be addressed I list them in the report and speak with the HO (not the tenant) about them. We then work out weather they want to address the issue now or later and if they would like to use my services or someone else to effect repairs. I charge my normal hourly rates for this.

If there are plumbing, electrical or HVAC repairs needed I simply refer someone in the area and they use them 90% of the time.

I recently had a HO from Va. contact me about the services and told me that she had been using a property management company for 5 years at $2,200.00 a year. They offered only a 1 year inspection and no maintenance. And she had to locate any contractors she may need.

Edit: Make sure you check with your state licensing to see if this is listed under Home Inspections. You may need to aquire that license to do this.