Maintenance contracts, or service agreements, benefit home maintenance companies and their customers, making them a vital part of services businesses. A maintenance agreement provides peace of mind for homeowners, knowing that a reliable service provider will be there for them during an emergency or breakdown.
For HVAC, plumbing, and electrical contractors, service contracts guarantee steady streams of revenue in markets that can be highly seasonal and hard to predict. Use this guide to discover what makes a good home maintenance contract and why your service business should use it or check out the demo below to discover the powerful capabilities behind Sera's field service management software.
What Is a Home Maintenance Contract?
A contract for home maintenance services is a legal contract between an individual or organization and a service provider. The agreement outlines the stipulations as to how the provider will maintain, repair, restore, and service a customer’s equipment. All terms are solidified before any services are performed, including types of repair services, frequency, and pricing.
Annual maintenance agreements can include a wide range of services, such as:
- Air conditioning preventative maintenance
- Water heater repair
- Gutter cleaning
- Sump pump servicing
- HVAC system maintenance
- Garage door repair
The Elements of a Maintenance Agreement
Maintenance plans are comprehensive contracts. Therefore, they must detail every aspect of the service being provided. When crafting a home maintenance agreement, be sure to include the following information:
The Provider’s Responsibilities
Perhaps the most crucial piece of information on a service agreement is the project details. Clearly stating the responsibilities of the service provider helps to avoid confusion and eliminate any finger-pointing about which party failed to uphold the agreement.
The maintenance contract should include a section about the specific maintenance tasks to be performed and on what pieces of equipment. Not only does this help avoid confusion, but it benefits the provider by allowing them to correctly staff and allocate their resources. Disclosing responsibilities helps the business to operate more efficiently and avoid potentially costly mistakes.
Client Expectations
In most cases, the expectations of the client and service provider align. Still, any additional details about what the client expects are helpful for the service provider. Clearly communicated expectations help to sidestep disputes and time wasted that could have been avoided.
When crafting a service agreement, providers should ask the customers what their goals are for the services and what they hope to achieve. This information helps the providers understand the amount of time and resources necessary to meet expectations.
Service Frequency and Rates
Maintenance agreements must also clearly state the expected service completion time and costs. Providing clients with a specific timeframe for task completion allows them to prepare and enhances the customer experience. Contractors can use this window to schedule other jobs and allow wiggle room should any unforeseen circumstances arise and delay completion.
Pricing on a service agreement must be transparent. Service providers should lay out all aspects of their rates, such as the base cost of the service, labor, cost of materials, taxes, and any other financial factors involved.
Additional important elements of a service contract include:
- Service provider and customer name
- Relevant contact information
- Method of payment (cash, credit card, check, etc.)
- Additional services
- Cancellation policy
- Warranty information
Reasons to Use Home Maintenance Contracts
Many small home service businesses choose to operate without contracts. While this method allows for fluidity and the provider to adapt more easily, too many things can go wrong and put the contractor at risk.
The agreement is intended to protect the client and provider. With home maintenance contracts, your business can experience the following benefits:
Regular Income
It’s common for businesses to experience ups and downs. During slow periods, providers must look for other avenues to garner income. Regular, predictable income from service contracts makes periods of low business more sustainable because the company receives income even without obtaining new clients.
Furthermore, the home maintenance service industry is a very crowded space. The level of competition makes it difficult for companies to stand out. When steady labor becomes increasingly harder to find, home maintenance contracts can make the difference.
Repeat Customers
Companies in every sector of business attempt to build brand loyalty and establish repeat customers. However, finding buyers and turning them into repeat customers is one of the biggest hurdles a company faces. With regular maintenance contracts, service providers can boost customer satisfaction and reap repeat business, which promotes stability.
Timely Payments
For businesses, on-time payments are essential. While getting paid promptly might sound simple, it’s often a challenge for maintenance companies. Businesses end up needing to track down payments, delaying their growth because of lost revenue and wasting time that could have been used for other areas of the business.
Service agreements offer a solution with clearly presented payment terms. Customers are held responsible and expected to abide by the contract’s terms, ensuring they submit payment promptly. There will always be complications with a few customers. However, service contracts address this issue overall.
Using Maintenance Agreement Templates
Crating maintenance contracts for your business is simple with customizable templates that include all the necessary fields of information. Companies should carefully consider their business’s unique offerings before creating an agreement. This ensures all relevant information is included in the final contract and all bases are covered.
Optimize Your Business with Sera
Service providers wishing to optimize their businesses should consider field service management software from Sera. Our technology provides several solutions for HVAC, plumbing, and electrical service providers, including home maintenance contracts. You also benefit from the following features:
- Hassle-free implementation
- Fast pricebook updates
- Live customer booking
- Quick quote building
- Smart scheduling
- Membership growth engine
Sera’s software is designed with maintenance providers in mind. We bring together simplicity, efficiency, functionality, and automation to reduce the chaos, complexity, and expense of running a home service business. Contact us today to schedule a demo and learn more.
