Planning for Reliable Building Services Without Sacrificing Service Quality
As property managers begin preparing their 2027 operating budgets, one of the most important—and often most challenging—areas to forecast is the cost of building services.
Janitorial, porter, maintenance, handyman, concierge and other building-service contracts are heavily influenced by labor costs. Unlike many products and services, the majority of the cost of providing these services is tied directly to the people working in your building. Wages, payroll taxes, workers’ compensation, insurance, benefits, recruiting and employee retention all have a direct impact on the cost of maintaining a consistent level of service.
For 2027, property managers should consider more than simply applying last year’s contract price to the new budget. A thoughtful budgeting process can help avoid mid-year adjustments, staffing challenges and unexpected service issues.
1. Budget for the Service You Actually Need
The first step is to evaluate whether your current staffing and service levels are still appropriate for the building.
Ask:
- Has the building’s occupancy changed?
- Have amenities or common areas increased?
- Has package volume changed?
- Are residents expecting a higher level of concierge or porter service?
- Are there recurring maintenance issues that could be addressed proactively?
- Has the workload changed even though the staffing level has remained the same?
A building that was appropriately staffed two or three years ago may have very different needs today.
Rather than simply asking, “What did we spend last year?”, consider asking, “What level of service do we want our residents, tenants and ownership to experience in 2027?”
That distinction can make a significant difference when developing the budget.
2. Understand the Real Cost of Labor
Labor typically represents the largest component of a building-services contract. The hourly wage paid to an employee, however, is only one part of the employer’s cost.
In addition to wages, service providers must account for payroll taxes, workers’ compensation, liability insurance, recruiting, training, uniforms, supervision, benefits and other employment-related expenses.
The result is that a wage increase does not affect the service provider’s cost on a dollar-for-dollar basis.
For example, if an employee receives a $1.00 hourly wage increase, the employer’s actual additional cost can be meaningfully higher once payroll taxes, workers’ compensation and other employment-related expenses are considered.
This is particularly important when evaluating proposals. The lowest hourly rate does not necessarily represent the lowest overall cost to the property.
3. Retention Is Part of the Budget
Employee turnover has a cost that is easy to overlook.
When experienced building-service employees leave, the impact can extend well beyond recruiting and training a replacement. New employees need time to learn the property, understand building procedures, develop relationships with management and residents, and become familiar with the property’s specific requirements.
For concierge, maintenance and porter positions, continuity can be especially valuable.
When reviewing your 2027 service budget, consider the provider’s approach to:
- Employee compensation
- Retention and recognition
- Training
- Supervision
- Recruiting
- Employee engagement
- Coverage of open positions
A service provider that invests in its employees can help protect the consistency and quality of service your property receives.
4. Don’t Underbudget and Hope to Fix It Later
Underbudgeting building services can create problems later in the year.
If the budget does not adequately account for the actual cost of delivering the required level of service, the property may ultimately face difficult choices: reduce staffing, reduce service levels, approve an unplanned increase or ask the service provider to absorb costs that were never contemplated in the original agreement.
A more effective approach is to obtain realistic pricing before the budget is finalized.
This gives ownership and management a clearer understanding of what the desired service level will actually cost—and provides an opportunity to make adjustments before the budget is approved.
5. Look Beyond the Monthly Price
When comparing service providers for 2027, consider the entire value proposition.
Important questions include:
Who will manage the account?
A strong field-management structure can be just as important as the employees assigned to the building.
How quickly are staffing issues addressed?
Open positions and absenteeism can have an immediate impact on residents and tenants.
How is performance measured?
Regular inspections, communication and documented accountability can help ensure that service standards are maintained.
What happens when something goes wrong?
The quality of a service provider is often most apparent when there is an unexpected staffing issue, emergency or service complaint.
Does the provider understand your property?
Every building has different needs. A successful relationship should involve more than simply supplying labor.
6. Build Flexibility Into the 2027 Budget
A good building-services budget should provide enough flexibility to accommodate changing conditions.
Consider whether your 2027 budget should include:
- Additional coverage for peak periods
- Periodic deep-cleaning or floor-care projects
- Preventive maintenance
- Seasonal services
- Increased package or amenity-area activity
- Additional concierge or porter coverage
- Emergency or special-project work
Planning for these expenses in advance is generally preferable to reacting to them after the budget has been finalized.
Start Your 2027 Budget With Real Numbers
The 2027 budgeting process is an opportunity to evaluate not only what your property spent last year, but whether your current building-services program is delivering the level of service your residents, tenants, and ownership expect.
At STAR Building Services, we work with property managers to develop building-service programs tailored to the specific needs of each property. Our services include commercial cleaning, porter services, concierge/doorman services, maintenance and handyman services, along with periodic project work.
Rather than simply providing a price, we can help you evaluate staffing, service levels, and operational requirements so that your 2027 budget reflects a realistic plan for the year ahead.
Let’s Build Your 2027 Budget Together
If you are preparing your 2027 operating budget, now is the ideal time to review your current building-services program.
Contact STAR Building Services for a complimentary 2027 budget proposal and service review.
We’ll review your current program, discuss your goals for 2027, and provide a proposal designed around the service level your property needs.
STAR Building Services
info@starbuildingservices.com | 201-235-3150
Commercial Cleaning | Porter | Concierge | Maintenance | Handyman Services
Reach out today to start planning your 2027 budget.