For home maintenance companies, home maintenance contract agreements are a vital part of business. While there is a dependence on regular work, having maintenance contracts in place can create continued revenue even during “down periods” each year.
Housecall Pro can help answer any questions you may have when it comes to maintenance contracts. Before long, you will not only see just how easy it is to have a contract template in place, but how beneficial it can be for the business as a whole. Read on to find out all you need to know about home maintenance contract agreements.
What is a Home Maintenance Contract Agreement?
To put it simply, a home maintenance contract agreement is an arrangement between an individual or organization and a home maintenance company. These agreements include any services or plans, maintenance schedules, fees, and the frequency of those services.
These maintenance contract agreements vary depending on the work desired. Basic home maintenance contract agreements may include bi-annual inspections and maintenance. A contract with an organization may include repairs (monthly, quarterly, annually, etc.) and other features as well.
Home maintenance contracts work in much the same way as any other agreement. An individual or organization enters into an agreement with your business, the language of the agreement specifying services that must be fulfilled within the designated time period.
The contract also lays out the cost for each of these services, as well as the frequency in which they must be performed. Most cover basic maintenance, but they can include other services such as repairs. Home and business owners may want one of these to ensure that essential home and business equipment remains working optimally and to avoid underlying issues.
It is important to know what should be included in the average maintenance contract. Housecall Pro has an excellent maintenance contract template that can make things a lot easier. In any event, some of the most important elements of a maintenance contract include:
Without a doubt, one of the most vital parts of any home maintenance contract agreement is what work will be done. Miscommunication and ambiguity often lead to issues on one or both ends of the agreement, so this section will lay out clearly what the responsibilities of the contractor are.
In a maintenance contract, there will be a section about what services will be performed and on what equipment. Those services – maintenance, repair, or installation – are often disclosed on the specified dates agreed upon.
Having the responsibility of the contractor clearly laid out is beneficial for many reasons. Not only does it avoid confusion, but it allows the contractor to properly schedule out staff and allot time accordingly. All of this allows the business to run more efficiently and avoid potential mistakes.
While it is good for a home maintenance contract agreement to disclose what the work the contractor expects, it can also disclose what the client expects. Most of the time, the goals of the contractor and client align. That said, any additional details are always helpful.
More often than not, a client will simply agree to the stated responsibilities of the contractor. Depending on the agreement, there may be room for the client to add in details or requests; a lot of it depends on the type of work being done.
As is the case with the responsibilities of the contractor, it provides clear communication. Expectations that aren’t communicated to the contractor often lead to disputes and wasted time that could have otherwise been avoided.
Finally, there should be a clear representation of completion time and price. There may be language in the contract that states that prices and work performed can change depending on circumstances, but this allows the client to know what to expect.
Service completion time can definitely vary, but also gives a decent window for the contractor to work within. This helps when scheduling other jobs but should allow for a bit of wiggle room in the event of unforeseen circumstances.
Lastly, pricing should be transparent. Many times, pricing is laid out by the base cost of the labor, cost of materials, and any taxes or fees that may be involved. Adding a subtotal prior to the taxes allows the customer to see precisely what the work being done will cost when all is said and done.
Far too many small businesses operate without service contracts of any kind, preferring the fluidity of each situation. A maintenance contract is meant to protect both the client and contractor, however. Without one, there are far too many things that can go awry and create a chaotic situation.
If you aren’t sure whether a home maintenance contract agreement is worth your time, think again. Using Housecall Pro’s maintenance contract template, the process can be made simple. Even better, it is customizable so that your business can tweak things to fit precisely what you need.
There are more than a few clear benefits to implementing a home maintenance contract. For businesses of all sizes, there is little to no downside to having a contract template in place. When all is said and done, these are some of the biggest benefits to be enjoyed.
There are natural ebbs and flows throughout the year when it comes to income. During down times, or the “offseason,” contractors need to find other ways of garnering income. Home maintenance contracts are a fantastic way to ensure that the down times are more manageable because income is always coming in.
The market is shifting all the time, and the level of competition is perhaps higher than ever before. Maintenance contracts are great for businesses because they guarantee billable work. When steady labor from non-contract customers becomes tougher to find, these agreements can make a major difference.
Regular, predictable income is invaluable to businesses for more reasons than the obvious. Not only does it ensure that the business can continue to run, but that any necessary overhead can be accounted for even in the face of a distinct drop in business.
For contractors of all kinds, one of the worst issues is miscommunication. It is bad enough when miscommunication occurs between staff members. When it happens between contractor and customer, much larger issues can rise to the forefront.
Having maintenance contracts in place puts very clear language into effect. The client and contractor are clearly aware of the work expected to be done, when it will be completed, and what the overall costs of those services will be. There is little to no room for interpretation.
For businesses with a million little things to worry about on a daily basis, that miscommunication can be devastating. Having maintenance contracts in place will protect the business and ensure that the client is always aware of the necessary details of the job.
Every single business, regardless of service or product, is attempting to build brand loyalty. Finding repeat customers is arguably the biggest challenge facing any business. Repeat customers are often happy customers and as close to guaranteed business as it gets.
Having proper home maintenance contract agreements helps to drive loyalty. Customers happy with the work being done will want to sign up to have future issues taken care of. Whether that be regular maintenance, repairs, or installation, a service agreement can be a great way to keep those customers coming back for their needs.
The customers looking for the best deal aren’t likely to stick around or return most of the time. While those one-off customers are still important to the business, it is the repeat customers that ultimately mean the most. Having an effective contract agreement will provide peace of mind for those repeat customers going forward.
Maintenance contract agreements are vital to contractor businesses of all sizes. Some of the biggest benefits were touched upon above, but there are a few critical reasons why your business should be selling them to each customer going forward.
Generally speaking, many homeowners and businesses prepare their HVAC systems for the winter and summer. That leaves the period of September through March as a relatively “open” season, also known as a “slow” season. Selling maintenance contract agreements can help to mitigate those slower seasons when revenue can take a hit.
The period from April through August will likely be full of maintenance, repair, and installation requests. Selling maintenance contracts will ensure that there is work to be done throughout the year. Most importantly, it will keep the bottom line from falling out when the aforementioned April through August period is over.
Getting paid in a timely manner might sound simple, but far too many businesses wind up having to track down payments. Without a service contract in place, getting those payments can be a lot tougher than it sounds. That is not only lost revenue but time wasted that could have been spent on other areas of the business.
Home maintenance contract agreements often include not only when payment is due but also what forms of payment are accepted. Though there will always be a few problem customers who drag their feet when paying, having clearly presented terms ensures that customers pay in a timely manner.
On average, Pros increase monthly revenue generated through Housecall Pro by 50% after their first year.
