Just the Peaks
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Beyond the Books: Multifamily Maintenance
How The State of Your Properties Affects Your Business – And What to Do About It
As we roll into a new year, this is the perfect opportunity to take stock of your success. What’s going well? What needs work? And how do you plan to get there?
To get you feeling inspired, our team decided to go back to basics this quarter by looking into some of the seemingly minor things that can impact your bottom line in a big way. This month: let’s talk about maintenance.
Maintenance costs are one of the most underestimated expenses in the multifamily management business. In reality, they play a critical role in determining your property’s profitability and value over time. With the help of our featured Senior Loan Officer, Judy Stein, we’re going to explore some of the most common maintenance issues, tips for spotting potential problems, and strategies to help you optimize your asset’s long-term success.
Wait! Before You Invest In That New Property…
Acquiring a new property is always exciting – but don’t let your joy cloud your judgement! Before you close on your latest asset, we recommend performing a thorough inspection. As time-consuming as it can be, this single step can save you thousands in unexpected repair costs.
“Even if you’re not an expert at DIY home repair, simply seeing a building in-person can make any issues more clear,” explains Judy. “If you’d like even more assurance, you can also hire a certified inspector to examine the building. If you can afford it, the benefits of this step will well-outweigh the potential costs in time or money.”
If you’re looking at the building on your own, here are some tips to help you make the most of your inspection
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Check the Roof and Foundation – Look for visible cracks or water damage. Sinking areas or uneven structure is also a sign of a problem.
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Inspect Mechanical Systems – Confirm that HVAC, plumbing, and electrical systems are functional. Some appliances may also have a status light or test function.
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Review Maintenance Logs – Request records of past repairs and upkeep to understand the property’s history. This can also tell you when appliances were last inspected.
“If you can, it’s best to inspect individual units for signs of general neglect, such as peeling paint, worn hardware, water stains, or pest damage,” says Judy. “While these things may not seem like a big deal at a glance, they can be a sign that other issues may be present. If they didn’t bother to replace that stuck doorknob, what else didn’t they fix?”
Common Multifamily Maintenance Issues
When you move your new property into your portfolio, the first thing you should do is set up a preventative maintenance checklist.
“Appliances break down, structures wear out, and things do break,” acknowledges Judy, “but these issues can be greatly reduced in frequency with the right routine maintenance. By staying ahead of unit repairs, you can correct small concerns before they become big problems – and take a big chunk out of your overall cost.”
Here are some common building problems and ways to prevent them:
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HVAC System Failures
The Problem: Heating, ventilation, and air conditioning (HVAC) systems are vital for tenant comfort but often prone to wear and tear, especially in older buildings.
The Solution: Schedule regular maintenance checks, replace filters quarterly, and budget for major repairs or system replacements every 10-15 years.
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Plumbing Problems
The Problem: Leaky faucets, clogged drains, and aging pipes can lead to water damage and mold growth if left unchecked.
The Solution: Perform routine inspections of pipes and water heaters. Address leaks promptly and consider upgrading old plumbing to prevent recurring issues.
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Roof and Gutter Damage
The Problem: Missing shingles, blocked gutters, and general wear from weather conditions can lead to leaks and structural damage.
The Solution: Conduct seasonal roof inspections and clear gutters regularly to prevent water buildup and ice dams.
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Electrical System Failures
The Problem: Outdated wiring and overloaded circuits can cause power outages and fire hazards.
The Solution: Hire a licensed electrician for periodic system audits and upgrades, especially in older properties.
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Pest Infestations
The Problem: Rodents, termites, and other pests can damage property and create an unhealthy living environment for your tenants.
The Solution: Schedule routine pest control inspections and seal potential entry points to keep infestations at bay.
Ideally, you’d do all of your preventive maintenance and nothing would ever break again but, as Judy has already pointed out: reality is not so kind. So what happens next? How do you keep repairs within budget when the unexpected happens?
4 Ways to Minimize Multifamily Maintenance Costs
Thankfully, you don’t have to sacrifice your ideals for tenant support to make a pricey repair. With a healthy mix of foresight, planning, and leveraging financial tools, you can reduce the amount you spend – without compromising on quality. Here are some ways:
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Create a Reserve Fund – Allocate a percentage of your rental income to a maintenance reserve fund. Many experts recommend saving 10-15% of annual revenue for unexpected repairs.
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Leverage Financing Options – For major repairs or renovations, explore financing options such as property improvement loans or lines of credit.
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Negotiate Contractor Rates – Build relationships with trusted contractors and negotiate long-term service agreements for better pricing.
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Optimize Insurance Coverage – Review your property insurance policy to ensure it covers common maintenance emergencies, such as water damage or electrical fires.
“Your Everest loan officer can steer you in the right direction when it comes to funding,” says Judy. “We also frequently collaborate with contractors, insurance providers, and other real estate professionals – so we’ll be able to coordinate between everyone on your team to minimize delays. After all: time is money.”
And Here’s One Last Blast of Knowledge…
With proactive management and a comprehensive emergency backup plan, you can do a lot for your building management bottom line. But, before we sign off, our experts have three more tips to share:
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Upgrade Strategically – Focus on renovations that offer high ROI, such as energy-efficient appliances or insulated flooring.
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Monitor ROI on Repairs – Track the financial impact of repairs and upgrades on rental income and property value.
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Stay Compliant – Ensure all maintenance aligns with local building codes and safety regulations to avoid costly fines or legal issues.
These final strategies can help you optimize any returns you get from your properties – and help you recognize when your approach needs to change. If you’re still operating in (or close) to the red for one or more of your properties, a comprehensive strategy analysis may be in order.
Why are we so sure? Because financial expertise isn’t just about balancing the books; it’s about managing every angle of your investments. If you’ve got problems somewhere, those issues will eventually spill over into other areas.
“Maintenance isn’t just an operational necessity,” explains Judy. “It’s a key driver of profitability and tenant satisfaction. By identifying common issues, implementing proactive management strategies, and handling repair costs effectively, you can safeguard your portfolio’s value now – and in the future.”
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