Building an internal maintenance staff is an asset but it has a lot to be considered along with it. During slow periods layoffs may be necessary. If there\u2019s not enough work for the employees, you\u2019ll be paying more than you bring in.<\/p>\n<\/div>\n
There\u2019s also the task of hiring and training new employees when the amount of help is needed. Training and paying for additional help can be costly and time-consuming for your team. External maintenance should really be used as a tool available for when there are fluctuations in your internal maintenance team.<\/p>\n
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- 63% of turns\/rehabs happen between May and Oct (5\/12)\n
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- Leases and moves tend to happen in that portion of the year.<\/li>\n<\/ul>\n<\/li>\n
- 52% of occupied repairs happen between the same period May and Oct (5\/12)\n
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- HVAC and other types of repairs see a strong increase during the summer months (particularly in the southern region)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
<\/p>\n
Trackable Metrics for Internal Maintenance Staff<\/h3>\n
Billable Rate<\/h4>\n
The formula<\/strong>:<\/h4>\n
Total Hours Billed \/ Total Hours Worked (payroll) = A percentage of time worked that generated revenue for the company<\/p>\n
Example:<\/strong><\/p>\n
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- An employee who works 100 hours, but 90 hours were billed means the employee has a 90% billable rate.<\/li>\n<\/ul>\n
<\/p>\n
![\"billable](\"https:\/\/propertymeld.com\/wp-content\/uploads\/2024\/03\/Screen-Shot-2024-05-31-at-10.22.39-AM-1024x274.png\")
<\/p>\n<\/p>\n
A low percentage can mean one of two things:<\/strong><\/p>\n
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- A failure for accounting properly<\/li>\n
- The employee is not working enough revenue-generating hours<\/li>\n<\/ul>\n
Utilization Rate<\/h4>\n
The formula<\/strong>:<\/h4>\n
Total Hours Checking-In on Service Issues \/ Total Hours Worked (payroll) = A percentage indicating how much time the employee is physically working on jobs.<\/p>\n
Example:<\/strong><\/p>\n
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- An employee who works 100 hours and checked-in for repairs a total of 85 hours means the employee is 85% utilized.<\/li>\n<\/ul>\n
<\/p>\n
![\"Technician](\"https:\/\/propertymeld.com\/wp-content\/uploads\/2024\/03\/Screen-Shot-2024-05-31-at-10.22.49-AM-1024x258.png\")
<\/p>\n<\/p>\n
A low percentage can mean one of two things:<\/strong><\/p>\n
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- There is not enough work to keep the employee busy<\/li>\n
- The employee\u2019s time management needs to be evaluated to ensure they are working on repairs and not spent on non-work-related tasks.<\/li>\n<\/ul>\n
<\/p>\n
What Do My Billable and Utilization Rates Need to Be?<\/h3>\n
The higher your delta between billable rate is and how much technicians cost, decreases the utilization required to be profitable.<\/p>\n
If you bill at $45\/hour versus $35\/hour and your cost is $20 including fringe benefits \u2013 you feasibly bill 22% less hours to have the same profit.<\/p>\n
Example 1:<\/strong><\/p>\n
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- 100 hours worked, and 90 hours billed = billable rate of 90%\n
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- $35\/hour billable rate, $20 cost rate = $1,150 in profits generated<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
Example 2:<\/strong><\/p>\n
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- 100 hours worked, and 70 hours billed = billable rate of 70%\n
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- $45\/hour billable rate, $20 cost rate = $1,150 in profits generated<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
- 100 hours worked, and 70 hours billed = billable rate of 70%\n
- $35\/hour billable rate, $20 cost rate = $1,150 in profits generated<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
- 100 hours worked, and 90 hours billed = billable rate of 90%\n
- An employee who works 100 hours and checked-in for repairs a total of 85 hours means the employee is 85% utilized.<\/li>\n<\/ul>\n
- An employee who works 100 hours, but 90 hours were billed means the employee has a 90% billable rate.<\/li>\n<\/ul>\n
- HVAC and other types of repairs see a strong increase during the summer months (particularly in the southern region)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n