Company News

Emergency Purchases for Multifamily Properties

by Michelle N. on 10/29/2013 4:52:19 AM

“How can I reduce the amount of money we spend on ‘emergency’ purchases?” A great question often asked by Multifamily Housing Professionals.  Buyers Access is here to help with practical ways to either mitigate, or greatly reduce these expenses.

Have a plan in place. This includes having a list of approved emergency vendors. Failure to do so can lead to inefficiencies such as higher costs for standard items, use of inferior substitute items, use of unauthorized vendors, trips off site, and overtime charges. One recent analysis performed for a Buyers Access client revealed an increase of over 20% charged by the use an unauthorized vendor. This increase included the extra time involved in an offsite purchase, and reconciling an invoice to an unauthorized vendor. How can this drag on NOI be avoided?

Be realistic about what can and should be reduced.
True emergency spend will never go away 100%, but in many cases the term “emergency” is used only to help justify an unplanned purchase. Establish ground rules, as to what constitutes a true emergency. Consultants at Buyers Access have identified several ways to improve efficiency, increase service levels, and reduce the incidences of “False Alarms”. Once the ground rules have been set, communicate the plan to your team, and designate a leader to go to with questions.

An ounce of prevention is worth a pound of cure. One practical way to reduce emergency expenses is to perform scheduled property inspections. These can detect potential emergencies waiting to happen.  Key vendors are invaluable in this process. Buyers Access members have the benefit of making one call to our Member Services team to schedule qualified inspections by HVAC, plumbing, and electrical contractors. 

Practice makes perfect. Review emergency procedures on a consistent basis. Our Account Management Team, can assist with this review, and identify additional solutions to further reduce costs associated with emergencies. Ultimately, these steps not only improve your NOI, but your residents’ experience through more timely resolution to their requests.


To learn more about other cost reducing strategies that Buyers Access can offer, contact the Buyers Access Sales Team today orclick here for a Free Consultation!