Looking to stop overpaying for repairs?
Most business owners and commercial property investors wait for something to break before they have it repaired. Reactive maintenance costs more money, is more of a headache and can lead to liability.
The Issue:
If a business owner ignores small issues they turn into emergencies that cost exponentially more. A small crack in the parking lot turns into a pothole that needs to be filled. A minor HVAC problem becomes a full system replacement. A small leak causes significant structural damage.
The Solution? Routine preventive care
What’s In This Article:
- Reactive Maintenance Is Costing You More Money Than You Realize
- Three ways proactive care can keep your business healthy
- Parking Lot Maintenance Tips (A case study in neglect)
- How to implement a simple maintenance schedule
Reactive Maintenance Is Costing You More Money Than You Realize
The numbers don’t lie:
According to industry research, on average companies can expect to save between 12% and 18% by implementing a preventive maintenance plan as opposed to a reactive or non-existent maintenance program. For every dollar spent on planned care, reactive maintenance costs an average of 5x more.
Pause for a moment.
Savings aren’t accidental. They are the result of catching issues in the early stages, when they are inexpensive and easy to fix. Business owners who adopt a planned maintenance mindset spend less, on average, and keep their assets in a better condition for longer.
Parking Lot maintenance is a great example of the difference between planned and non-existent care. Business owners don’t tend to think about the parking lot until an expensive, large crack appears in the pavement. Parking lot sealcoating is a professional service in which Asphalt Coatings Company in Denver, CO helps protect asphalt surfaces from water damage, UV rays, and chemical spills. It is a low cost prevention treatment that can extend the life of pavement. Not only is sealcoating cost effective but it also requires less frequent striping, resulting in more savings for business owners.
Parking lot maintenance isn’t an anomaly. The same is true of every business asset. Waiting for something to break incurs premium pricing for emergency labor and materials, overtime costs, rush shipping fees for parts and a hit to the business bottom line due to production time lost while repairs are being made.
Reactive maintenance seems like a cheaper option. In the short term. The long-term costs of this business approach are staggering.
The True Costs Of Reactive Care
Ignoring minor issues is never a good idea. That is because issues don’t stay minor.
The sad truth is that when business owners do not address warning signs, this is what eventually happens:
- Equipment fails during peak business hours
- Customers complain about the state of the building
- Safety hazards open your business up to liability
- Assets reach the end of their usable life
The worst part of all of these outcomes is that they are preventable. With regular inspection and scheduled maintenance.
Proactive Care Protects Your Business
Proactive maintenance is not about spending more money to keep things running. Proactive maintenance is about investing wisely. Three important benefits come from this approach.
Problems are caught in the early stages, when they are less expensive to fix. Assets last longer, and their usable life can be extended. Liability exposure is greatly reduced for business owners.
Safety is not optional when it comes to commercial and industrial properties. Property owners and managers have a legal obligation to maintain safe premises for customers, employees and guests. Legal fees, insurance increases and even judgments come when this duty is not met.
Parking Lot Maintenance (A Case Study In Neglect)
Parking lots are one of the most visible areas of business neglect.
When was the last time you looked at the parking lot in front of your business? Customers and employees aren’t the only ones who notice. The state of the parking lot has a direct effect on the business’s liability. A water pooled on the ground, cracked pavement and uneven curbs all present liability issues for the business owner.
Not only do properly maintained parking lots last longer, but they also reduce the risk of customers, employees or guests being injured on the property. Ignoring the parking lot makes it easy for visitors to your business to have grounds for liability claims.
Regular maintenance is far less expensive than:
- Asphalt replacement
- Pothole repair
- Legal defense and settlements
- Turned away customers
Building A Simple Maintenance Schedule
Now we come to the good stuff.
Establishing a proactive maintenance schedule does not have to be difficult. It must be consistent and tracked. Business owners need a system that is set up to catch issues as they arise and are small and documentation of all maintenance performed.
Start here:
Monthly Tasks:
Walk the property and look for visible issues. Inspect exterior lighting, walkways and parking lot surfaces. Document with pictures.
Quarterly Tasks:
Schedule a professional inspection of major systems in the building and on the property. HVAC, plumbing, electrical and exterior surfaces need to be inspected. Resolve identified issues in a timely manner.
Annual Tasks:
Plan for sealcoating and preventive treatments like roof inspections and equipment servicing. Budget for these expenses on the front end of the year.
Maintenance Schedules Work
The goals of a simple maintenance schedule are not perfection. The goal is forward motion. According to property management research, non-preventive (reactive) maintenance is 25-30% more expensive than preventive measures. This cost difference is the result of emergency labor premiums and the necessity of having to order materials or parts at a moment’s notice.
Managing Liability Through Maintenance
This is the one thing that business owners sometimes fail to consider when it comes to liability and maintenance:
Maintenance isn’t just about reducing costs and keeping things in good working order. Proper maintenance and preventive care are also about protecting your business from liability and legal claims.
Property owners and operators have a duty of care to anyone who sets foot on their property. Customers, employees and guests are expected to enter into your business in the same condition that they left. When a person is injured due to a property defect or unsafe condition that a reasonable property owner would have known about and fixed, the property owner may be held liable.
Courts take a variety of factors into consideration when making this determination. The standard is usually a combination of whether the property owner knew or should have known about a hazard. When a property is neglected and an injury occurs, it is difficult to make the argument that you didn’t know about the hazard or were taking active steps to mitigate it.
Documented maintenance schedules and records of inspections are the best way to show a reasonable business owner acted in good faith to maintain safe conditions.
The Bottom Line
Proactive care is at the heart of smart commercial property ownership.
Every single asset and every part of a commercial building requires care and maintenance. Parking lots, HVAC systems and the interior spaces of the building all require a planned, preventive care program. Proper, routine maintenance:
- Stops expensive emergencies
- Extends asset life
- Protects the business from liability
- Keeps the business looking professional
Business owners have two choices. Invest a little now in regular maintenance or invest a lot later in emergency repairs, legal headaches and the like.
Business owners who understand this simple fact are able to protect their investment. Proactive maintenance is factored into the operating budget. Regular inspections and documentation are scheduled and completed. And they never wait for the cracks to spread.
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