Research-backed strategies for smart sourcing and navigating material cost inflation in property maintenance

Maintenance remains one of the most significant—and stressful—aspects of property management. According to our 2026 Property Management Industry Report, 93% of property management companies report that at least one major expense has increased over the past year.

The good news? Property managers are responding strategically. Half of all companies say their top cost-cutting tactic for 2026 is adopting new tools or better using current ones to improve efficiency.

This post breaks down what the data tells us about maintenance cost pressures—and the practical strategies companies are using to control expenses, improve service, and prove their value to owners.

The Cost Pressure Is Real—But the Rate of Increase Is Slowing

Labor costs for vendors and contractors have risen for 70% of companies, while 64% have seen material and supply costs climb.

For rental property owners, the picture is similar: 81% report increased property taxes, 72% face higher property insurance costs, and 44% are dealing with elevated vendor and labor expenses. Yet maintenance sits at the top of owners’ stress list—38% cite it as their biggest concern, more than any other aspect of property ownership.

However, there’s a silver lining: the rate of  increase for operational costs is finally moderating, with all but two expense categories (utilities and payroll) showing slower growth in the past year.For property managers, this creates a window of opportunity.

While you can’t control property taxes or insurance premiums, you can influence vendor costs, material spending, and the frequency of emergency repairs. The companies seeing the best results are those focusing on the expenses within their control.

What Owners Expect From You Now

Just 38% of rental property owners report that their properties are consistently profitable. With margins this tight, owners are looking to their property managers for more than just reactive repairs. They want:

• Transparent communication: Clear explanations of where their money is going and why costs are rising
• Proactive cost management: Strategies that prevent expensive emergencies rather than just responding to them
• Data-driven decisions: Reports that show how your maintenance approach is protecting their investment

This shift in expectations is why 74% of owners say customer service is their top consideration when choosing a property management company—even above price and service area.

Technology Adoption: The #1 Cost-Cutting Strategy for 2026

When we asked property managers about their plans to control costs in the coming year, one answer stood out: 50% said adopting new tools or better using current ones to improve efficiency is their primary strategy. An additional 21% reported that implementing new technology solutions has already been a successful part of their revenue generation strategy.

The technologies delivering the most value right now are:

1. Online payments (47%): Streamlining rent collection and reducing late payments
2. Tenant screening tools (32%): Finding reliable residents who pay on time and take care of properties
3. Accounting tools (28%): Providing clear financial reporting to owners
4. Online document signing (27%): Speeding up lease execution and renewals
5. Online maintenance ticketing (18%): Routing requests efficiently and tracking resolution times

How Property Managers Are Using Technology to Control Maintenance Costs

The right property management software can help you control maintenance expenses in several ways:

Track spending by category and vendor: Use your property management software to pull reports that show exactly where your maintenance dollars are going. Export data by vendor, category, and individual items to identify your highest-cost materials and services.

Automate routine processes: Set up automatic rent reminders, route maintenance tickets to the right vendors, and log tenant messages without manual intervention. This frees up your team to focus on higher-value activities. Check out our guides on maintenance workflow automation 101 and 201 for in-depth strategies on how to do this.

Monitor vendor performance: Property management software with vendor bill approval workflows can flag invoices that exceed your agreed-upon limits before you pay them.

Document preventive maintenance: Tools like Buildium’s HappyCo integration help you document inspections, sync findings to your desktop app, and schedule resulting maintenance—all from within one platform.

Preventive Maintenance: Turning Owners’ #1 Stressor Into Your Competitive Advantage

Maintenance has topped the list of rental owners’ stressors every year since we started asking in 2017. This creates a significant opportunity for property managers who can demonstrate a proactive approach. As industry expert Kelli Segretto, CPM of K Segretto Consulting, puts it in the Industry Report: “Preventative maintenance is a long-term play. It’s preserving the asset. It’s catching problems before they become bigger.”

How Preventive Maintenance Reduces Material Costs

A proactive maintenance strategy can significantly reduce your material spending by extending equipment life and preventing expensive emergency repairs:

HVAC systems: Changing filters quarterly prevents system strain that can lead to early failure of expensive components like motors and compressors. Annual cleanings maintain efficiency and prevent corrosion.

Water heaters: Inspecting anode rods every 3-4 years (more frequently in hard-water areas) can add years to a water heater’s life, helping you avoid a much larger replacement cost.

Plumbing fixtures: Annual caulking schedules for tubs, showers, and sinks stop water intrusion before it causes serious damage. Quarterly cleaning of faucet aerators and showerheads keeps water flowing properly and reduces resident complaints.

Preventive Maintenance as a Revenue Stream

Several companies featured in our Industry Report have successfully turned preventive maintenance into a subscription service that generates recurring revenue while reducing emergency repair costs.

Dave Gorham, CEO, and Jeannie Connors, COO of Realty Solutions, explained their company’s approach in the Industry Report: “We packaged a preventative maintenance program powered by one of our local vendors. Every quarter, they come in and change every filter in your house—dishwasher, refrigerator, heater. They change lightbulbs, they change batteries. We have two packages, small and then a larger package.”

This model benefits everyone: owners get peace of mind and lower long-term costs, residents experience fewer disruptions, and property managers create a new revenue stream while reducing emergency calls.

Maintenance Responsiveness: A Key Driver of Resident Retention

Preventive maintenance goes beyond reducing costs to improve resident retention, which protects your owners’ income and reduces turnover expenses.

When we asked renters what would convince them to renew their lease, two of the top four responses involved maintenance:

• 40% would stay if their property manager or landlord invested more in maintaining the property
• 31% would stay if they were more responsive to maintenance requests

According to Carl Whitaker, Chief Economist at RealPage: “Resident retention has become a key industry sub-theme in recent years, especially as this is a partially-controllable lever that operators can utilize to also mitigate the physical costs of resident turnover (i.e. make-ready costs) as well as more intangible—yet still real—costs such as marketing and the loss of revenue from units sitting vacant.”

How to Improve Maintenance Response Times

Use resident portals and mobile apps to allow tenants to submit maintenance requests 24/7. Online ticketing systems can automatically route requests to the appropriate vendor and send real-time updates to residents.

Set clear service level agreements (SLAs) with specific response times (for example, four hours for emergencies, 24 hours for urgent repairs, and 72 hours for routine maintenance). Track these metrics and share them with owners (or opt for an owner portal with self-service access for clients) to demonstrate your responsiveness.

All this can be done from a single software platform such as Buildium.

Vendor Management: Negotiating Terms That Control Costs

With 70% of companies reporting increased labor costs for vendors and contractors, your vendor agreements are more important than ever. Well-structured contracts are your first line of defense against unexpected price increases.

Key Contract Terms to Negotiate

Markup caps: In your vendor contracts, specify a capped materials markup rather than accepting whatever percentage your vendor typically charges. Require itemized receipts that show the actual cost of materials.

Price locks: Talk to your suppliers about fixed-pricing agreements for your most-used materials. Some vendors will offer price protection, letting you lock in a quoted price for orders placed within the next 30 or 60 days.

Not-to-exceed limits: Set maximum amounts for common repair types. Property management software with vendor bill approval workflows can flag invoices that go over these limits before you pay them.

Service level agreements: Define specific response times for different types of repairs. This ensures consistent service while giving you leverage if a vendor fails to meet expectations.

The Case for Bringing Maintenance In-House

With the skilled labor shortage continuing, 15% of survey respondents say bringing maintenance services in-house is part of their cost-cutting strategy for 2026.

“The first thing you want to do is look back at the last 6 months to a year,” says Kelli Segretto. “What type of work orders were you doing? Do you have a volume that could sustain an individual? I’m a big proponent for hybrid maintenance departments—you have an in-house team, and you have outsourced vendors for specialty services, and you leverage both.”

A hybrid model lets you keep routine, high-frequency jobs in-house for speed and consistency, while outsourcing specialized work to trusted vendors.

Standardizing Unit Turns to Control Material Costs

Unit turnover is one of the most process-heavy and expensive parts of property management. Creating a systematic approach can reduce waste, improve efficiency, and control your material costs.

Create a Standard Bill of Materials

Develop a baseline list of materials for a typical unit turn, often called a bill of materials (BOM). Include specific quantities based on standard coverage and coats, adjusting for unit size and surfaces. Add standard hardware sets, basic cleaning supplies, and common repair items.

Store these lists in your property management software for easy reference. With Buildium’s document storage, your team can access standard BOMs from any device.

Batch Similar Work to Reduce Vendor Costs

Group similar work across multiple units to lower mobilization and trip costs. Batch carpet cleanings to the same day, route vendors to cluster work orders in the same area, and create detailed material lists before dispatching technicians.

When vendors arrive with everything they need, they can often complete the job in one visit—a “first-time fix” that helps you avoid return trips and rush orders for forgotten materials.

Proving Your Value: KPIs That Matter to Owners

With just 38% of rental property owners reporting consistent profitability, clear communication about your cost-control efforts is essential. The owners who work with property managers do so primarily for customer service (74%), local market expertise (55%), and reporting and transparency (52%).

Track These Maintenance Metrics

• Material cost per unit: Divide your monthly material spend by the number of units you manage to show cost efficiency over time
• Emergency vs. planned ratio: The percentage of reactive versus proactive work indicates how well your preventive maintenance program is working
• First-time fix rate: Jobs completed without a return trip demonstrate your team’s efficiency and planning
• Average response time: How quickly you address maintenance requests affects resident satisfaction and retention

Communicate Results to Owners

Create clear, simple reports that show your cost-control initiatives and their results. Use concrete examples, such as annualized savings from preventive maintenance programs or reduced emergency repair costs compared to previous years.

Property management software with robust reporting capabilities can automate these updates. For a real- world example, you can explore this case study on how batch reporting helped Common Cents Property Management cut violation handling time by 77%.

What the Data Tells Us About Managing Maintenance Costs

The 2026 Industry Report reveals that property managers are under significant cost pressure—but they’re responding strategically

Key Takeaways:

• Technology is the top cost-control strategy: 50% of companies plan to adopt new tools or better use current ones to improve efficiency in 2026
• Maintenance is owners’ #1 stressor: 38% cite it as their biggest concern, creating an opportunity for managers who can demonstrate proactive approaches
• Preventive maintenance drives retention: 40% of uncertain renters would stay if their property manager invested more in maintenance, while 31% want faster response times
• Vendor management matters: With 70% of companies facing higher vendor labor costs, well-structured contracts with markup caps and price locks are essential
• Transparency builds trust: 74% of owners choose property managers based on customer service, with reporting and transparency ranking third

Whether you’re managing a handful of properties or a growing portfolio, these strategies can help you control costs while improving service.

Property management platforms such as Buildium provide the tools you need to track expenses, automate routine tasks, and communicate results to owners.

To see how your operations might benefit, you can schedule a guided demo or sign up for a 14-day free trial—no credit card required.

Frequently Asked Questions About Maintenance Cost Management

What percentage of property management companies are facing increased maintenance costs?

According to our 2026 Industry Report, 93% of property management companies report that at least one major expense has increased over the past year. Specifically, 70% have seen labor costs for vendors and contractors rise, while 64% report increased material and supply costs.

Why is maintenance the top stressor for rental property owners?

Maintenance has consistently topped the list of owner stressors since 2017. In our 2026 report, 38% of owners cite it as their biggest concern—more than finding tenants, dealing with vacancies, or collecting rent. This is because maintenance is unpredictable, potentially expensive, and directly affects property values and resident satisfaction.

How can preventive maintenance reduce overall costs?

Preventive maintenance extends equipment life and prevents expensive emergency repairs. For example, changing HVAC filters quarterly prevents system strain that can lead to early failure of motors and compressors. Inspecting water heater anode rods every 3-4 years can add years to a water heater’s life, avoiding a much larger replacement cost.

Should I bring maintenance in-house or continue outsourcing?

Industry experts recommend a hybrid approach: keep routine, high-frequency jobs in-house for speed and consistency, while outsourcing specialized work to trusted vendors. Start by analyzing your work order volume and cost trends over the past 6-12 months to determine which tasks might justify in-house staffing.

How does property management software help control maintenance costs?

Property management software with detailed expense tracking allows you to pull reports by vendor, category, and individual items to identify your highest-cost materials. Vendor bill approval workflows can flag invoices that exceed agreed-upon limits, while maintenance ticketing systems route requests efficiently and track resolution times.