The commercial real estate landscape has shifted dramatically. With office buildings and retailer spaces facing lower occupancy rates, building owners are grappling with a harsh reality—paying for elevator maintenance contracts negotiated when their properties were full.
Elevator service providers continue to charge the same rates, despite significantly lower traffic. These contracts, designed for high usage, offer little flexibility, and service companies have little incentive to renegotiate. The result? Owners are stuck paying full price for services they may not fully need.
If your building is experiencing reduced occupancy but you’re still locked into a high-cost elevator maintenance agreement which usually have unfavorable terms for the buildings. There are strategies to help you regain control, reduce expenses, and ensure your elevators remain safe and compliant.
Why Your Elevator Costs Haven’t Dropped—Even When Your Occupancy Has
Most elevator maintenance contracts are structured around full building usage, meaning costs are tied to a high volume of daily riders. But when occupancy drops, wear and tear on the elevators also decreases—yet your invoices remain unchanged.
Here’s why:
1. Fixed-Term Contracts Favor the Service Provider – Many elevator contracts have long-term commitments with little room for adjustment, ensuring predictable revenue for the service provider.
2. Lack of Competitive Pressure – With fewer businesses expanding or demanding service, elevator companies aren’t feeling pressured to lower their pricing.
3. Service Companies Maximize Profit in Low-Occupancy Situations – The service provider still follows the vague contracts however there is less wear and tear. This results potentially a longer life cycle.
4. Hidden Fees and Over-Maintenance – Some contracts include services that may no longer be necessary with lower usage, such as excessive callback allowances, overtime or unnecessary repairs. However, the service providers still want to make money so they are looking for repairs.
How to Reduce Your Elevator Costs Without Compromising Safety
If you’re locked into an expensive contract while your building remains under-occupied, you’re not powerless. Here’s what you can do to cut costs while ensuring your elevators remain safe and compliant:
1. Audit Your Existing Elevator Service Agreement
Most building owners don’t realize that some elevator contracts contain clauses that can be renegotiated or challenged. A professional elevator audit can help identify areas where you’re being overcharged, unnecessary services, or contract loopholes. Your attorney should review.
2. Reassess Your Service Scope Based on Occupancy
A building with low foot traffic doesn’t require the same maintenance frequency as a fully occupied one. Consider:
- Reducing maintenance frequency: If your contract allows flexibility, reduce service visits in alignment with lower usage.
- Eliminating unnecessary services: Are you paying for rapid-response services when emergency calls have dropped?
- Reevaluating response time clauses: Some contracts have emergent response time that is just not necessary at these times.
3. Leverage Industry Experts to Negotiate on Your Behalf
Elevator service contracts are complex, and service providers have the upper hand in negotiations. An independent elevator consultant can analyze your contract, compare it to industry standards, and discuss the buildings goals. Their expertise ensures you’re not overpaying for services you no longer need.
4. Explore Performance-Based Service Models
Rather than paying a fixed rate, be creative to models where costs align with actual usage and maintenance needs. Some owners have successfully transitioned to:
- Usage-based pricing, where costs are tied to occupancy.
- On-demand service models, where maintenance is performed only as needed rather than on a rigid schedule.
5. Ensure You’re Not Paying for Unperformed Services
If your building is experiencing less foot traffic, your elevators require fewer service calls. However, some service providers continue billing for full-service contracts without performing all required tasks.
- Request service logs and records.
- Compare service visits to your building’s actual elevator usage.
- Use an elevator consultant to audit invoices and dispute overcharges.
6. Plan for Future Flexibility
If your contract is nearing renewal, now is the time to renegotiate terms that give you scalability and flexibility in case occupancy fluctuates. Insist on:
- Shorter contract terms to avoid being locked in long-term.
- Clauses that allow for adjustments based on usage.
- Clear pricing breakdowns to eliminate hidden fees.
- Competitive Bid a new contract with other service providers.
The Bottom Line: You Can Take Control of Your Elevator Costs
The economic landscape has changed, and building owners shouldn’t have to bear the financial burden of outdated elevator service contracts that no longer reflect reality. While elevator service companies may resist renegotiation, owners who take a strategic, data-driven approach can identify cost-saving opportunities without sacrificing performance, safety or compliance to save cost.
By auditing your contract, aligning services with actual needs, leveraging an expert elevator consultant, and ensuring billing transparency, you can regain control over your elevator expenses. Don’t let a vacant building drain your budget—take action today to secure a more cost-effective and fair service agreement.
Need help reviewing your contract and cutting unnecessary elevator expenses? The Elevator Consultants specializes in helping building owners reduce costs, optimize contracts, and ensure top-tier service without overpaying. Contact us today to find out how we can help.
FAQ
1. Can I renegotiate my elevator maintenance contract if I’m still under agreement?
It depends on the clauses in your contract. Some contracts contain clauses that allow for adjustments based on changes in building usage. A professional elevator consultant audit can help identify opportunities, hidden fees, and service reductions that align with your current occupancy.
2. If my building has lower elevator usage, do I still need the same level of maintenance?
Not necessarily. Lower usage means less wear and tear, which could allow for reduced maintenance frequency, fewer callbacks, and adjusted service plans.
3. How can an elevator consultant help me lower my costs?
An elevator consultant reviews your contract, identifies overcharges, aligns building terms, and ensures you’re only paying for necessary services. They leverage industry expertise to help you cut costs while keeping your elevators safe, compliant, and operational.
Need help reducing your elevator maintenance costs? Contact The Elevator Consultants today for a contract audit and customized cost-saving strategies.