Home Maintenance Contract Agreements: The Ultimate Guide for 2024
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Home Maintenance Contract Agreements: The Ultimate Guide for Service Businesses in 2024

Home Maintenance Contract Agreements: The Ultimate Guide for 2024

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.

How Maintenance Contract Agreements Work

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.

What are the Major Elements of a Maintenance Contract?

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:

  • Business and customer name and contact information
  • Details of equipment being serviced or repaired
  • Contractor response and service completion time
  • Methods of payment accepted (cash, credit card, check, etc.)
  • Payment plans (if applicable)

Extent of Responsibilities

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.

Client Expectations

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.

Service Completion Time and Price

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.

Why Utilize Maintenance Contracts for Your Business?

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.

Home Maintenance Contract Agreements Benefits

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.

Regular Income

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.

Protection from Miscommunication

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.

Loyalty/Brand Building

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.

Why It’s Important to Sell Maintenance Contract Agreements

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.

Mitigate “Slow” Seasons

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.

Get Paid in a Timely Manner

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.

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Earn Repeat Customers

In order for a business to grow, it must have repeat customers. Those repeat customers are the foundation of any good business, a loyal subset of customers that provide repeat business for years to come. While the one-off customers play a role, repeat customers provide stability to the business as a whole.

Selling service agreements will ensure repeat customers. Simple agreements may include bi-annual maintenance. Other agreements can be a bit more comprehensive. Earning service agreement sales also shows which customers are most satisfied with the work being done. Selling service contracts with each job also provides some confidence to customers as well.

How to Set Up Home Maintenance Contract Agreements

Knowing all that there is to know about home maintenance contract agreements, you may be wondering how to set one up. The beautiful part of it all is that you can get one done in no time at all, leaving your business in a far better position than it was without one.

There are two methods through which a maintenance contract can be achieved. You can either use a customizable maintenance contract template or create your own by utilizing home service agreement software. Check out both below.

Use a Customizable Maintenance Contract Template

The simplest move to make is to use a customizable maintenance contract. It includes all of the necessary basics, so there is no need to go through the rigamarole of going through line by line and adding all of the required points.

Even better, you can customize the template to include any and all information. Each business has different requirements and standards, so being able to customize that template can prove invaluable in the long run.

What Information Does Housecall Pro’s Free Maintenance Contract Template Include?

Housecall Pro’s free maintenance contract template is the best possible solution. The contract template can be used to create a simple yet effective agreement between the business and each client for any maintenance or repair work to be done.

On the Housecall Pro template, there are some basic fields included:

  • Client name and address
  • Business name, address, and phone number
  • Contract date
  • Responsibilities and duties to be performed
  • Price of each service, material, etc.
  • Taxes and fees
  • A line for customer signature

Because it is customizable, fields can be added, moved around, and changed as you see fit. It is the perfect option for creating an effective maintenance contract going forward.

Utilize Home Service Agreement Software

Another effective way to simplify things is by using home service agreement software. Every business has so much manpower to go around and making the most of it is critical. Having a simple but efficient method of handling things is a must.

Home service agreement software can allow you to create and manage your agreements. Anything that can make the business run more effectively and with fewer errors should be explored. Home service agreement software can streamline recurring service plans, ultimately adding to the bottom line.

How Can Maintenance Agreement Software Help My Business?

If your business is currently without maintenance agreement software, you are missing out. As it stands, there are several major reasons why to have proper software in place. These are, without a doubt, the most important benefits to be had.

Fewer Errors

Even small errors can add up if they are made frequently enough. Human error is part of the equation for any business, but they don’t have to become overwhelming. Implementing maintenance agreement software can drastically reduce the number of errors the business experiences.

Prices will be clear and current. The accuracy and precision of good software will virtually eliminate discrepancies as well as omissions. Overall, the business should be far more effective and efficient. That can have a tremendous impact not only on the bottom line but the confidence of the business as well.

Accessibility

One aspect of maintenance agreement software that doesn’t get talked about enough is the availability of files from virtually anywhere. Being able to gain access to information at a moment’s notice cannot be overstated, especially when that one additional piece of information can sway a previously uncertain customer.

With things like job histories, images, completed forms, payment records, and a litany of other customer information available, technicians can have all the answers at a moment’s notice. Being able to answer even the little questions can make sure that a job goes off without a hitch and that customers are satisfied right down to the smallest detail.

Better Communication

Every contractor has had an instance where communication could have saved the day. Whether it be sending a technician to the wrong job, picking up last-minute materials, or something else entirely, being able to communicate in real-time can make a huge difference, especially in the long run.

Having effective field service management software can make it far easier for everyone to keep in touch. Messages can be received instantly, including the sharing of files and images. Every tool can be useful in making the business, as a whole, better. Improving communication will cut down on errors and help drive customer satisfaction to a new level.

Grow Your Business with Maintenance Contract Agreements

If your business has been operating without a home maintenance contract agreement, now is the time to remedy the situation. Housecall Pro has a free home maintenance contract agreement template and top-tier software to help streamline the business and make it as efficient as possible.Start today by signing up for Housecall Pro’s free 14-day trial. Long before the 14-day trial expires, it will become readily apparent just how beneficial having these two tools can be. Improve the way that you run your business by signing up today and seeing just how big the benefits can be.


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Last Posted June, 2024
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