A stitch in time saves nine or, an ounce of prevention is worth a pound of cure. These old cliches point out the value of preventative maintenance as opposed to dealing with a full-blown problem. Such issues are often experienced with commercial real estate. A leaky faucet can be fixed with a fifty cent washer, but the water damage that it could cause over time might translate into hundreds or thousands of dollars. We, at Eidi Properties, have experienced the full range of these problems and our experience has taught us to nip these issues in the bud. Therefore, we recommend service contracts to our tenants to keep up their units semi-annually and replace their air filters. This preventative model benefits all parties involved.
Why Service Contracts?
When a tenant maintains their property and the associated responsibilities, they usually benefit from the increased efficiency and reduced costs of repairs. The semi annual service costs are usually around $60 to $80, plus the cost of air filters. This drop in the bucket will often pay for itself. One example of how costs are reduced is seen when air filters are replaced. These items usually cost a couple of dollars each but when replaced regularly, they keep the air in the stores clean and allow the HVAC systems to run efficiently, reducing gas and electric bills.
However, when they are neglected, the dust that accumulates over time can choke the system, and cause expensive damage to the heating and cooling systems. Compressors can burn out due to being overworked, which can lead to condensation and water damage, not to mention the cost of repairing or replacing the compressor. When simple maintenance is done regularly, like replacing air filters, many of these costly repairs are avoided or experienced only at the natural life expectancy of the equipment. We also send out annual notices to all of our tenants to remind them of the value they receive in participating in the service agreement.
This simple process helps us keep lease costs competitive, maintain good relationships with our tenants, and help them receive the best value for their stores while providing a great shopping environment for their customers. This inspires another appropriate cliche: a penny saved is a penny earned.