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I think the main weakness in this business model, which is the same one with condos, is that people don't like to think about the really expensive things that t

I think the main weakness in this business model, which is the same one with condos, is that people don't like to think about the really expensive things that they don't need to pay for regularly. When you need a new furnace/roof/fence/siding/driveway/etc., it's a multiple-$K hit. If you haven't budgeted for it (and I think most people don't), then the tendency will be to put it off for another year or three. I would guess the regular maintenance you outline takes care of perhaps only half the larger long-term upkeep problem. So prompt comprehensive maintenance with a flat monthly rate requires what seem like very high rates and some escrow, and also involves lower margins than it may appear to the customer. You may also become a magnet for customers who have already accrued a lot of "maintenance debt". So maybe you'd just need a long list of major unpredictable maintenance exclusions? Would that still be a satisfactory value proposition?

avalaunch 12y ago
Regarding the main weakness, I think you nailed it. That being said, one could make a pretty convincing argument to the home owner that by participating in such a service, even at a premium, they'd actually save thousands of dollars. By keeping a home well maintained, you can avoid many of the big repairs that you'd otherwise be subject to. Most people don't caulk cracks when they first appear. They don't check their siding and roofing for cracks and leaks on a regular basis. They don't change out their furnace filter every winter. And a 100 other things they should be doing but aren't. And you're right - people don't budget for the big issues. And that's all the more reason they need a service like this. A monthly, predictable bill is more manageable than a series of big, one time hits. As for maintenance debt, pricing might need to take into account the age of the various components (roof, fence, siding, ect...). And, of course, any pre-existing conditions (ie. roof needs repaired now) wouldn't be covered at all.
deleted 12y ago
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avalaunch 12y ago

Regarding the main weakness, I think you nailed it. That being said, one could make a pretty convincing argument to the home owner that by participating in such a service, even at a premium, they'd actually save thousands of dollars. By keeping a home well maintained, you can avoid many of the big repairs that you'd otherwise be subject to. Most people don't caulk cracks when they first appear. They don't check their siding and roofing for cracks and leaks on a regular basis. They don't change out their furnace filter every winter. And a 100 other things they should be doing but aren't. And you're right - people don't budget for the big issues. And that's all the more reason they need a service like this. A monthly, predictable bill is more manageable than a series of big, one time hits. As for maintenance debt, pricing might need to take into account the age of the various components (roof, fence, siding, ect...). And, of course, any pre-existing conditions (ie. roof needs repaired now) wouldn't be covered at all.

deleted 12y ago

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