Uncertainty. It can be devastating for property managers trying to plan ahead and control their budgets. Is it just the nature of the facility maintenance game? Or is there a better way?
The problem: wildly fluctuating budgets
A real estate investment trust was having trouble with wildly fluctuating budgets. One month, the bill for plumbing across the REIT properties would clock in around $40,000. The next month, it would dip to just a few thousand dollars before skyrocketing to $100,000-plus. The wide fluctuations made it difficult to plan year-to-year, and it was a problem that stretched across every service budget for the REIT – landscaping, lot sweeping, lighting, you name it.
The DMG solution
DMG implemented its budgeted program – sometimes called “total cost of ownership” – where the customer pays a fixed amount per service line, and DMG completely manages the service.
There are many benefits to this program:
No. 1: It makes it easy for the customer to budget and plan ahead. They know exactly what they’ll be spending.
No. 2: DMG manages the day-to-day maintenance. Now the customer – rather than worrying about a burnt-out light in the parking lot or whether they need to replace a dead plant – can focus on revenue-driving activities.
No. 3: It allows DMG to be more proactive, ultimately saving the customer time and money. Take this example: A DMG district manager is doing a site inspection and notices a pothole on one of the REIT properties. Normally, the DM would have to go up the chain to get approval to fix the pothole, a process that could take a week or longer. Under the budgeted program, the DM immediately puts in a work order and the pothole is fixed right away – before it damages vehicles or becomes a larger problem.
For the customer, the budgeted program means more certainty, more security and, ultimately, more savings. For this particular REIT, adding lighting to the budgeted program in just one state saved $100,000 in the first year alone.
Multiply that by more states and more lines of service, and the savings only grows.
The DMG difference
DMG’s nationwide buying centers and expertise mean you can trust us to care for your properties – freeing you up to focus on revenue-driving activities.
We specialize in managing complex projects across multiple sites and states. No matter how many properties are in your portfolio, where they are or what they need, DMG is ready.
Our relationships with our customers are long-term. We value your business, and our work reflects that sense of care and commitment.
Contact DMG to learn more.