But… No One Profits in a Zero-Work-Order Business
What the 2025 20for20 report reveals about the cost of misaligned incentives in multifamily maintenance.In property management, maintenance isn’t just broken — it’s profitable.Owners: Not for you.
But it is for almost everyone else.
Profit Flows to the Problem — Not the Solution
Let’s be clear about how the system pays:- Vendors profit from repeat visits and multiple billable trips — not long-term fixes.
- Software platforms make money on every work order submitted or through vendor margin share. More tickets = more revenue.
- Operators often earn margin on vendor activity or platform rebates tied to volume.
- Staff stay busy responding, so we keep hiring.
The owner gets the bill.
The Ideal Outcome: No Work Orders — Has No Margin
In a perfect world, units run clean, issues are prevented, and service calls disappear.But in today’s model:
- There’s no margin when nothing breaks.
- There’s no fee when no one rolls a truck.
- There’s no software value when ticket volume goes down.
What the 2025 20for20 Report Shows
The latest 20for20 reports, compiled by @Dom Beveridge, make it plain:"15 out of 20 executives reported no significant progress on centralizing maintenance delivery."— 2025 20for20 Annual Survey"The trend toward an ever-increasing share of our industry relying on the services of third-party managers. This is where our industry’s conversation about centralization should focus for the foreseeable future."
— Centralization for Third-Party ManagementDespite all the investment in tools and transformation, maintenance still operates in the same old pattern — because the incentives haven’t changed.
Why Misalignment Persists
Here’s the truth behind the stall:- Vendors are rewarded for recurring visits — not issue prevention.
- Software wins on throughput — not efficiency.
- Managers, in many cases, earn fees on vendor spend — sometimes up to 20% of their per unit revenue — and are reluctant to reduce it.
That’s not broken logic — that’s the business model.
What Real Alignment Would Look Like
To fix this, we don’t need new tools. We need new motivations.- Reward vendors for fewer trips — not just faster ones.
Imagine an agreement where vendors earn bonuses for reducing corrective maintenance by 30% year-over-year. - Pay software providers to reduce ticket volume — not just track it.
Incentivize operators to prevent work orders — not just process them.
Until Incentives Change, Maintenance Costs Won’t
"Don’t hate the player, hate the game." --(A rap song from a cassette tape my highschool buddy Steve Christie use to play all the time)Right now, you — the owner — are funding a structure where everyone’s profit scales with your pain.BUT → OWNERS: You are the one that has the power to change the game.If you’re thinking about maintenance optimization, think less, not more.The next generation of vendor agreements, software contracts, and staffing models should reward progress — not problems.➡️ Want to see what a maintenance model built on real alignment looks like?
Schedule a strategy session with IrisCX — and let’s rethink the progress together.Our mission is to simplify the homeowners & home builders customer experience. Let Iris do the work.
Up next
Getting to Hell Yes! in Selling: Insights from Dennis Steigerwalt
By: Guillermo Salazar • 12 January 2025
Dennis Steigerwalt: Driving Housing Innovation with Vision, Collaboration, and 'Hell Yes!' Solutions
The importance of online product reviews [+3 ways to get more]
By: IrisCX • 19 September 2022
Online reviews are impactful because they reach people with purchasing intent – a total of 93% of new customers consult reviews before purchasing a product or service. With virtual CX, your team can start receiving and leveraging better quality reviews.
Building Value: How New Home Builders Save Big with a Stellar Customer Experience Strategy
By: Guillermo Salazar • 08 January 2024
7 ways to measure your CX program in New Home building