By: Guillermo Salazar • 25 September 2024

Exploring Centralized Maintenance in Multifamily Housing: Challenges, Solutions, and the Path Forward

In the multifamily housing world, there's a lot of buzz around centralizing maintenance operations—and for good reason. Property management teams are constantly juggling how to cut costs, boost efficiency, and keep residents happy. On paper, centralized maintenance seems like the perfect solution, but putting it into practice comes with its own set of challenges.Let’s break down why centralization is so important, what’s holding the industry back, and how technology can make it all work.

Why Centralization is Crucial: Maintenance Woes in Multifamily Properties

Let’s be honest—traditional maintenance models are starting to feel a little outdated, especially as labor shortages get worse. Property managers are finding it harder to hire and keep skilled maintenance workers. Take Washington, D.C., for example: Many experienced workers are moving into government jobs with pensions and healthcare, leaving multifamily housing companies scrambling to fill their open roles. The same thing is happening in Texas, where workers are switching to industries like aerospace and tech.It’s not just about finding labor either—the way maintenance is handled right now is inefficient. A simple problem like a leaky faucet can take multiple trips just to diagnose and fix. That means higher costs, wasted resources, and frustrated residents. And with operational costs continuing to rise, scaling these processes across multiple buildings becomes a real headache.

Remote Maintenance: The Secret Sauce to Efficient Centralized Operations

So, how do we fix this? One of the smartest solutions out there is centralizing maintenance through technology. Centralized maintenance allows property managers to handle many issues remotely, which cuts down on the number of trips technicians need to make and helps streamline operations. This concept—remote maintenance or "telemaintenance"—is already a game changer in other industries, and now it’s being adapted to multifamily housing.We've seen the data: around 70% of maintenance issues are user errors—things like a thermostat being set incorrectly or a clogged filter. These are simple fixes that can often be handled remotely, and they don’t need a technician onsite. With a quick video chat or remote troubleshooting, property managers can resolve these problems within minutes, slashing the number of service requests that turn into expensive, time-consuming trips.

The Roadblocks: Why Centralized Maintenance Isn’t an Easy Shift

Even though the benefits of centralization are clear, there’s still a lot of pushback in the industry. Let’s face it, people resist change. For a lot of workers, especially those on the ground, new technologies feel like a threat—whether that’s a fear of job loss or just uncertainty around using something unfamiliar.And it’s not just cultural resistance. Implementing centralized maintenance is technically complex, too. Many property managers rely on legacy software like Yardi or RealPage, and integrating third-party solutions can be costly and a hassle. For smaller operators or those with tight budgets, these upfront costs can feel like a huge roadblock.Another big challenge? Getting everyone on board. Centralized maintenance only works if the whole organization is committed. From the corporate office to the onsite staff, everyone needs to use the new technology consistently. If adoption is half-hearted, the technology will sit unused, and the inefficiencies you were trying to fix will stick around.

Learning from Real-Life Implementations

Some property managers have already taken the leap and tried implementing technology-driven, centralized maintenance systems. And the results? A mixed bag. The tech can be incredibly effective, but adoption remains a major hurdle. On-site teams often prefer sticking with the traditional methods they know, even if the new solution could make their jobs easier in the long run.This brings up an important lesson: No matter how good the technology is, it won’t succeed without buy-in from everyone involved. The key is making the technology easy to use—if it’s not intuitive or seamless, it’s going to be an uphill battle getting people to adopt it.

The Way Forward: What Property Managers Need to Know

If you’re thinking about centralizing maintenance, here are a few key things to keep in mind:

1. Target the Right Markets
Centralization is a game changer in markets where labor is scarce or expensive. In regions where skilled workers are easier to find, the need to centralize might not be as strong. But in areas experiencing labor shortages—like the Sunbelt—centralized maintenance gives you a serious competitive edge.

2. Keep the Technology Simple
If it’s not easy to use, people won’t use it. Focus on technology that integrates smoothly with your existing systems and is intuitive for both management and field workers. Look for tools that offer real-time data capture, remote troubleshooting, and easy-to-understand interfaces. The easier the tech is to use, the faster your team will get on board.

3. Leverage Data to Drive Decisions
Centralized maintenance isn’t just about saving money—it’s about improving service. Use real-time data to make smart decisions about where to allocate resources and predict maintenance issues before they turn into bigger problems. This helps ensure that residents are satisfied with the service they receive, while you’re making the most of your budget.

There’s no question that centralized maintenance brings huge benefits—lower costs, better efficiency, and happier residents. But for it to work, property managers need to overcome the resistance to change and the challenges of integrating new technology. By targeting the right markets, simplifying the technology, and using data to guide decisions, multifamily operators can transform their maintenance operations for the better.As the multifamily industry continues to evolve, centralized maintenance will become a critical tool for property managers who want to stay competitive and meet their residents’ needs. The question isn’t if centralization will take off—it’s when.Call to Action: Have you started exploring centralized maintenance for your properties? Share your experiences or get in touch with us for more insights on how centralized solutions can work for your multifamily portfolio.

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