You're facing budget constraints for maintenance. How do you convince stakeholders to allocate more funds?

Maintenance Costs vs. Deferred Maintenance: Which Is Cheaper And Have Less Risk? In the real estate industry, balancing regular maintenance costs vs. the risk of deferred maintenance is crucial. Investing in regular upkeep might seem costly at first, but it significantly reduces the risk of major damages and expensive repairs down the line. Proactive maintenance ensures the longevity and value of properties, enhances tenant satisfaction, and minimizes unexpected disruptions. By prioritizing maintenance, you not only protect your assets but also secure a reliable and profitable investment. Remember, prevention is always more cost-effective than remediation.

I am a firm believer as it relates to Risk Mitigation and the associated costs to make sure that issues don't arise in office buildings. Think about this for a moment...let's say there is a leak on the roof of the property that allows water to penetrate to the office space located below the issue. The water not only creates an issue with the tenant but the larger issue is what that tenant communicates to the outside world. If they share their experience that a water damage event could have been mitigated but the Landlord was too cost adverse to repair it that message has much deeper issues on the perception of the property overall and can adversely effect any future tenants who are considering the property for their office space needs.

• Highlight the direct impact of maintenance on asset value to shift stakeholders' priorities. • Present potential risks of underfunding to create urgency for additional resources. • Frame maintenance as integral to long-term strategic goals to convince decision-makers. What if the real leverage in securing funds lies in demonstrating strategic risk and value alignment?

Emphasize that tenant retention is closely tied to property maintenance. Regular upkeep and prompt resolution of issues significantly enhance tenant satisfaction, leading to higher lease renewal rates. Highlight that well-maintained properties attract and retain quality tenants, ensuring stable rental income and reducing the costs associated with vacancies and tenant turnover. Present maintenance as a proactive investment that secures the property's financial health by fostering a loyal tenant base.

Throughout my career in real estate brokerage there has always been the concept of "low hanging fruit" which, more concisely defined, represents the clients that have been previously represented that either have a desire to extend the term of their existing lease or contemplate relocating. This concept is applicable to landlords and their existing tenant base. What could possibly be more important to the economics associated with an asset than keeping the revenue stream that you already have? And during these tumultuous times and the associated uncertainty this, in my opinion, should be a mantra..."keep thy tenants happy!" And how do you do that? Visits to "check in" with them and making sure that the property is well maintained.

As an office tenant representative I am hyper critical of how an office building is maintained and managed. One thing that I insist on is that my clients visit the respective men's and women's restrooms. Why? Because if there are paper towels on the floor it is illustrative of how the property is managed overall. Seriously, how difficult is it to visit these public spaces and make sure that they are in optimal condition? It isn't hard at all. Similarly, if the parking garage is not well lit or if the security station in the main lobby is in need of cosmetic work or repair it sends a message that could be very detrimental to a potential tenant considering the building as their office space where they will spend eight to 10 hours a day.

Demonstrate how investing in maintenance can improve operational efficiency and reduce costs in the long run. For instance, upgrading to energy-efficient systems can lead to significant savings on utility bills. Preventative maintenance can also help avoid costly emergency repairs and extend the lifespan of property assets. By showcasing these potential savings, you can position maintenance funding as a strategic decision that enhances the property's value and operational effectiveness, ultimately benefiting the bottom line.

Implement a robust communication strategy to keep stakeholders informed about the maintenance needs and their impact. Regular updates and transparent reporting on maintenance activities, costs, and outcomes foster trust and demonstrate accountability. Share success stories and data-driven insights that illustrate how maintenance investments have positively affected tenant satisfaction, property value, and operational efficiency. This transparency helps build a collaborative environment where stakeholders understand and support the necessity of adequate maintenance funding.

I am an overcommunicator. I believe that client's need to know everything possible about decisions related to where they may be making a commitment of time to run their business. As such, I welcome it when Landlords make a point of communicating with their clients, their tenant base. And if I owned a significant office property I would make a point to have a short newsletter that informs the tenants of either activities that are happening in the building, for example, elevator maintenance or cleaning of the property's garage. This way there are no surprises and the tenants are well informed. It also allows the Landlord to continually illustrate to their clients, the tenants, that they are always working to make their experience better!

For those in the real estate industry who want to see the impact of neglecting maintenance and innovation for 20 years, just take a ride on the German railway. The cost to bring things back to a standard level is astronomical, with entire irreplaceable routes being closed because repairs no longer make sense. In commercial real estate, this equates to demolitions, with tenants fleeing long before. Riding the train or flying has become an adventure. Investing in maintenance and innovation is essential to avoid such costly and disruptive consequences.