As an estate agent, are you up-to-speed on maintenance contracts?
Most estate agents I work with like things to run smoothly, and one of the biggest benefits for having their clients on maintenance contracts – which cover everything from CP12 certificates to everyday repairs – means that they only need to update their records and file a certificate once per year.
Sound like a good plan?
Below, I’m going to tell you everything you need to know about maintenance contracts for your clients, and more.
What is a maintenance contract?
Having a back-up plan in the event of any emergency can be a great idea, and especially if you have multiple properties and clients on your books then it will certainly take a lot of the uncertainty away, as I guarantee things WILL go wrong somewhere down the line.
A good maintenance contract will cover annual checks and emergency repairs to boilers, energy efficient controls and thermostats, radiators, flues to meet gas regulations – everything you need to meet a landlord’s legal obligations – and the client covers the cost.
Who offers maintenance contracts?
Maintenance contracts are currently offered by national companies such as British Gas, Scottish Power, Homeserve, and Eon.
We also know refer to maintenance contracts as ‘service plans’, and I talk in detail about them in my blog ‘Combi Boiler Aftercare: Service Plans vs Guarantees’.
How do they work?
Typically, you pay around £20 per month to cover call-outs, which translates to around £240 per year, and means you’ll be covered if anything goes wrong with your boiler.
In general, maintenance contracts can work out to be a lot more expensive than simply getting a new energy efficient boiler that’s under guarantee. In fact, I discuss this very issue in my blog ‘Do Landlords Need a Maintenance Contract for a New Boiler?’.
In most cases, maintenance contracts work out best for clients who have an older boiler, or who aren’t currently covered under their boiler’s guarantee.
Are maintenance contracts necessary?
The short answer is; no. Whilst maintenance contracts aren’t exactly necessary, they do offer ultimate peace of mind. If a client is letting their property and paying you a 10% management fee, the last thing they’re going to want is a bill from you for boiler repair.
Knowing they can pay just £15 – £20 per month and be covered for everything can be very tempting, especially if your clients have a lot of properties on their hands at once.
In fact, I’ve had a few agents calling us frantically for a visit as their usual engineers or preferred contractors were simply overwhelmed during peak times of the year. In the depths of winter, a lot of companies will only respond to their own clients under contract, so it’s something to bear in mind.
Check what clients are covered for
The best advice I can give you when it comes to maintenance contracts for your clients is to always check the small print, as some offer boiler service, breakdown cover and annual checks/CP12 certificate, whilst others will also cover the entire system including controls and pipework.
Many are all-inclusive, whereas some may look like a great deal but will in fact charge £50 excess for each call-out. Picking the right service contract can make all the different, so it’s definitely worth putting in a bit of research before your client commits to any contract.
To find out more, my blog ‘Landlords: 8 Questions to Ask When Choosing the Right Maintenance Contract for Your Boiler’ might be of help.
Alternative options
There ARE alternative options, such as what I like to call ‘service contracts’ offered by most good heating engineers. They typically work out cheaper than maintenance contracts (around £7.50 per month or £90 per year) and covers the boiler’s annual servicing (CP12 certificate).
This is particularly good if your client’s boiler is still covered under guarantee. For a slightly higher price (somewhere around £130 per year) they can also get their existing pipework, radiators and controls – basically their entire system that isn’t covered by their guarantee – covered in the event of anything going wrong.
Boiler no longer under guarantee?
What’s known as ‘premium cover’ can ensure your client is covered for all of the above, plus emergency call-outs to repair your boiler if anything happens to go wrong or replacement parts are required. This type of service contract costs only £14.99 per year – still cheaper than some maintenance contracts.
Conclusion
Well, that’s the murky world of maintenance contracts just about covered! If you’re an estate agent, I’d always recommend maintenance contracts to your clients to ensure things continue to run smoothly and that repairs or emergency call-outs can be undertaken immediately, with no hiccups along the way.
Just be sure to do your research first, and check that your client is covered for everything they need, including their radiators, pipework and controls. And remember, they might be cheaper with a service contract, especially if their boiler is still under guarantee.
I hope you’ve found this blog helpful, but if anything is unclear, please feel free to leave a comment and I’ll do my best to clarify.
