Maintenance Matters: Why Every Dollar Boosts Property Value

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In multifamily housing, maintenance is typically viewed as a necessary, routine expense that must be budgeted for and managed efficiently. But what if we started seeing it as a strategic investment that delivers measurable returns?

Recent industry data reveals a powerful insight: for every $1 spent on maintenance, property owners can see a $3 to $5 return in increased property value. In an environment where tenant expectations are rising and renewal rates are directly linked to resident satisfaction, this return on investment is more than just theoretical—it's essential.

The Financial Ripple Effect of Maintenance

Maintenance isn't just about fixing what's broken—it's about protecting asset value, building trust with residents, and driving higher lease renewals. Here's how a relatively small investment can yield outsized results:

1. Increased Renewal Rates

A key driver behind rising property value is resident retention. According to MarginPoint, properties that excel in maintenance receive 19–27% positive review mentions, while average properties come in at just 13.66%. That gap has real consequences: happier residents are more likely to renew, reducing costly turnover and vacancy losses.

When residents renew their leases, property managers avoid the expenses associated with marketing, preparing, and leasing units. Industry estimates place the average turnover cost between $1,000 and $3,000 per unit. Multiply that across multiple units, and you’ll see how investing in proactive maintenance directly protects your bottom line.

2. Deferred Maintenance Drains Value

Neglected maintenance has a compounding effect. One small leak today can become a major repair tomorrow. Not to mention the risk of negative online reviews, failed inspections, or diminished curb appeal. Properties with chronic maintenance issues not only struggle with retention, but they often see reduced appraised value and diminished investor confidence.

3. ROI You Can Measure

Whether you're improving HVAC systems, replacing aging fixtures, or investing in preventative repairs, these upgrades often pay for themselves. A well-maintained property is more likely to command higher rents, attract quality residents, and increase overall valuation.

The Maintenance Equation: ROI in Action

Let’s break it down:

• Scenario A: Deferred Maintenance

  • Deferred repairs lead to more frequent resident complaints and higher turnover.

  • Estimated turnover cost: $2,000 per unit

  • Estimated vacancy loss: $1,500 per month (1 vacant unit)

• Scenario B: Proactive Maintenance

  • The maintenance team responds quickly, and residents feel taken care of.

  • Lease renewals increase by even 10%

  • If 10 additional residents renew, that’s a potential savings of $20,000+ in turnover costs, not including added revenue from stabilized rent roll.

Resident Experience as a Strategic Investment

Maintenance plays a critical role in shaping both the resident experience and a property's reputation. But maintenance is about more than just keeping units functional; it directly impacts how residents feel about their home, which influences how long they stay. From the first impression at move-in to the final decision at renewal, consistent maintenance performance is one of the most powerful tools property owners have to drive retention, boost valuation, and protect long-term revenue.

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At BGSF, we help multifamily property owners and managers close the gap between maintenance challenges and business goals. With our on-demand support, we equip teams with the people and tools they need to turn every maintenance dollar into long-term value. Find maintenance talent today!