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Unlocking the Mystery of Maintenance Expenses

maintenance expenses  “Here’s the list of the supplies we need.” Maintenance Expenses is often the expense area where there always seems to be more days in a month than dollars in the budget. Every week a stock of supplies is ordered.  All too often it results in overrunning the budget.  Workorders have to be completed.  Apartment turnovers have to be completed. There are a variety of explanations for the budget variance report. It includes excessive amounts of resident service orders, scheduled unit inspections and a move out with a high volume of damages.  But this is what we face every month at our communities.  I think its possible to create some structure behind maintenance purchasing.  Not only will this assist in managing expenses against a budget.  It will also provide detailed explanations when future budgets are presented for review. Generally explanations to increase the maintenance budget start with an average of what has been spent.  We justify  an increase because surely supplies will cost more in the future.  Neither are not very effective arguments to defend expense increases. Creating a plan starts with an overview of the schedule for the property for the upcoming month. Turnover Expenses How many apartment homes will be prepared for move in? Generally there are ten to fifteen items that are purchased for every  apartment being prepped. replace the sanitary items in the bathroom. caulk for the countertops in the kitchen, vanity top and shower area in the bath. drip pans for the cook top. The list of ite......
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Managing the Mystery of the Maintenance Budget

image“We Need Supplies.” Maintenance Supply is often the expense account where there always seems to be more month than dollars in the budget. Given this is an area of operations that is reactive to the volume and variety of the requests of the residents; is it possible to effectively plan and budget for maintenance spending? It starts with an overview of the schedule for the property for the upcoming month. How many apartment homes will be prepared for move in? Generally there are ten to fifteen items that are purchased for every  apartment being prepped. -replace the sanitary items in the bathroom. -caulk for the countertops in the kitchen, vanity top and shower area in the bath. -drip pans for the cook top. The list of items with pricing information is going to outline the anticipated expense for apartment turns.  This amount applied to the number of apartments currently vacant will provide an estimate of potential expense for apartment turns. (This assumes items such as floor covering and appliance replacement are expensed to a capital improvement account code.) Next on the workflow agenda is preventive maintenance.  Is this the month to check smoke detectors or change furnace filters? How many apartments are scheduled and what is the cost of the supplies? Furnace filters for 100 apartments, $300. Lastly, the never ending flow of service requests. Again, the property record keeping will help determine an average number of work orders that are received each week/month. For a property with 50 service orders per......
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