The $3,000 Monthly Question Every Building Owner Asks
If you’re managing a commercial class A high-rise building, you’re likely spending $12,000 to $20,000 monthly on elevator maintenance. That’s up to $240,000 annually, often one of your building’s largest operating expenses. If you are a smaller office, hotel, retail, or condominium, you may be spending $1,000 to $1,500 a month on elevator maintenance, impacting your operating expense budget. Keeping in mind that both situations do not include additional proposals for repairs, callbacks, testing, inspection, etc.
The critical question isn’t whether you can reduce these costs; it’s how to do it without compromising tenant safety or facing costly breakdowns.
As an independent elevator consultant who has analyzed tens of thousands of maintenance contracts, we’ve identified proven strategies that reduce elevator maintenance costs by 15% to 30% while actually improving equipment reliability.
Quick Answer: Top 5 Elevator Cost Reduction Strategies
- Implement a maintenance control program based on the building’s elevators (20-40% savings)
- Monitor the service you are receiving based on your contract (15-25% reduction in overpayment)
- Negotiate or competitively bid contract terms during renewal periods (10-20% immediate savings)
- Identify an elevator company that can service your elevators (Eliminate 30% of unnecessary time and charges)
- Conduct independent elevator consulting audits (Identify 10%-60% in annual overcharges)
Understanding Your Current Elevator Maintenance Costs
What You’re Actually Paying For
Your monthly elevator preventative maintenance invoice typically includes:
- Preventive maintenance visits
- Callback responses
- Parts and repairs
- Administrative and profit margins
Hidden Costs Most Building Owners Miss
Beyond your maintenance contract, you’re likely paying:
- Overtime charges for after-hours callbacks ($300-$1,000 per hour)
- Parts markups (Percentage above actual cost)
- Monthly or quarterly service the building is not receiving
- Unnecessary repairs ($2,000 to $50,000+ per elevator)
- Items included in your contact that you do not know are included
- Annual price escalations exceeding inflation by 3-10%
Proven Strategies to Reduce Elevator Maintenance Costs
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Implement a maintenance control program based on the building’s elevators
The Problem: Buildings must have a maintenance control program per code. It is NOT the elevator service provider’s responsibility, as most people think, or it is common to think that “my service provider keeps my records”. Having a maintenance control program, also called an MCP, will make sure you are getting the services you need to get the more operational value and efficiencies from your elevator age and type. Think of having a car and not keeping records or even doing any maintenance on it; you would not allow this.
The Solution:
- Install a building MCP, either a manual log or an electronic one like the ElevatorApp. That will capture all service, testing, and inspection data required by code.
- Document all error codes and maintenance procedures
- Align the records with your current elevator maintenance contract with your logs to determine the missed service.
- Typical Savings: $20,000-$60,000 per year for large buildings and $1,000-$5,000 per year for smaller buildings
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Monitor the service you are receiving based on your contract
The Problem: It is all too common that buildings sign contracts that are written by the elevator service provider. The major like Otis, KONE, Schindler, and TKE often lock building owners into maintenance agreements that have their best interest and not the building. The building must monitor that they receive at least the code minimum requirement of 4 rimes per year. The contract may have more frequency and the building must make sure they are getting what’s in their contract.
The Solution:
- Summarize you contract to understand what the terms mean.
- Deploy an elevator monitoring software into the building operations or use pen and paper to log to track the services.
- Schedule and make sure the building receives maintenance based on proactive measures and not on actual wear patterns
- ROI: 15-25% reduction in repairs within 12 months
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Negotiate or competitively bid contract terms during renewal periods
Never Accept the First Renewal Offer
Buildings that successfully reduce elevator costs follow these negotiation principles:
- Condust an elevator assessment 2-6 months before contract expiration. Making sure there is no deferred maintenance allow for better bids.
- Request competitive bids from at least 3 vendors if possible
- Eliminate automatic renewal clauses
- Cap annual price increases at CPI or 3%, whichever is lower
- Include performance guarantees with financial penalties
- Don’t forget an out clause if you are not happy with the service,
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Identify an elevator company that can service your elevators
Smart Elevator Management Saves $30,000+ Annually for commercial high rise and $3,000+ annually for smaller building
- Inventory your equipment year of install, make and model
- Know the type of equipment you have hydraulic or traction
- Ask your service provider who will work on the equipment
- Establish a process to make sure the correct service provider is showing up
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Conduct independent elevator consulting audits
What an Independent Audit Reveals:
- Snap shot of the current state of your equipment
- Maintenance being billed but not performed
- Deferred maintenance identified and given to the service provider to rectify
- Premature parts replacement recommendations
- Scheduling inefficiencies
- Contract terms favoring the service provider
- Elevator concerns addressed
Real-World Case Studies
Case Study 1: Chicago REIT Portfolio
1. Challenge: 42 buildings with $3.2M annual elevator spend
2. Solution: Converted 60% to the new maintenance service provider
3. Result: $850,000 annual savings (26.5% reduction)
Case Study 2: Hotel Chain
1. Challenge: Inconsistent service quality across properties
2. Solution: Implemented testing and performance standards
3. Result: 40% reduction in guest complaints, 22% cost savings
Case Study 3: University
1. Challenge: 300+ elevators with multiple service providers
2. Solution: Centralized contract management with independent oversight
3. Result: $1.2M annual savings through standardization
Safety Considerations: What Never to Compromise
While reducing costs is important, certain maintenance elements are non-negotiable:
Never Skip or Delay:
- Annual safety tests required by code
- Required elevator preventative maintenance
- Emergency communication system checks
- Fire service operation tests
- Annual inspections
Areas Safe for Optimization:
- Cab cleaning frequency (monthly or quarterly)
- Cosmetic repairs (scratches, scuff marks)
- Light bulb replacement (LED upgrades reduce frequency)
Implementation Roadmap: Your 90-Day Action Plan
Days 1-30: Assessment Phase
1. Gather all current maintenance contracts and invoices
2. Make sure you understand the current contract terms and conditions
3. Document elevator inventory and age
4. Review three years of repair and service history
5. Calculate your total cost of ownership
Days 31-60: Strategy Development
1. Request proposals from 3-5 alternative service providers
2. Conduct an independent equipment condition assessment
3. Identify immediate cost reduction opportunities
4. Develop a negotiation strategy for the current provider
Days 61-90: Implementation
1. Negotiate new or existing contracts
2. Implement elevator service monitoring
3. Train building staff on new procedures
4. Establish monthly cost tracking metrics
Common Myths About Elevator Maintenance Cost Reduction
Myth 1: “Only OEMs can properly service their equipment.”
Reality: Non-OEM elevator service providers service an estimated 73% of elevators in North America
Myth 2: “Cheaper maintenance leads to more breakdowns”
Reality: Strategic cost reduction through technology and optimization can actually improve reliability.
Myth 3: “Switching providers will void equipment warranties”.
Reality: This may only be true for new elevator installation, and understanding the terms of the contract will provide the correct answer. An elevator consultant can assist with this as well.
Questions to Ask Your Current Maintenance Provider
- “What percentage of my monthly fee goes to actual maintenance versus administration?”
- “Can you provide a detailed breakdown of parts costs and labor?”
- “When will you show up for service?”
- “Will you provide a maintenance control program (MCP)?”
- “What specific tasks are performed during each preventive maintenance visit?”
- “How many callbacks last year were due to inadequate maintenance?”
- “Will you agree to performance-based pricing with uptime guarantees?”
The True Cost of Inaction
Every month you delay optimizing your elevator maintenance costs you:
- Overpay by $500-$4,500 per elevator per year, pending type and install
- Risk unexpected capital expenditures
- Face increasing tenant complaints
- Miss efficiency opportunities
- Increase unnecessary CAM expenses
- Deplete life cycle
Next Steps: Your Elevator Cost Reduction Checklist
- Schedule an independent elevator audit
- Review contracts for hidden fees and unfavorable terms
- Gather competitive bids from qualified providers
- Implement an elevator monitoring solution
- Calculate potential savings from the new strategy
- ROI from each cost reduction strategy
- Create an implementation timeline with and stakeholder and confirm buy-in
About The Elevator Consultants
The Elevator Consultants (TEC) is an independent elevator consulting firm serving all companies, REITs, and commercial building owners nationwide since 2007. We’ve helped clients reduce elevator maintenance costs by an average of 23% while improving equipment reliability and tenant satisfaction.
Our proprietary ElevatorApp monitoring platform provides real-time performance data independent of manufacturer systems, giving building owners the transparency and leverage needed to optimize their vertical transportation spend.
Contact The Elevator Consultants for a Free Preliminary Cost Reduction Assessment
Frequently Asked Questions
How much can I realistically save on elevator maintenance costs?
Most commercial buildings can reduce elevator maintenance costs by 15-30% through contract optimization, strategic provider selection, and preventative maintenance, and monitoring technology. Buildings with proprietary contracts often see savings of 30-40% when converting to a performance-based maintenance.
Will switching from OEM maintenance jeopardize my maintenance?
No. Typically, any service provider can work on any equipment, no matter the equipment installed. You will need to ask the prospective elevator service provider about their experience. In the event of proprietary equipment, it may be difficult for another service provider to service, so always confirm qualifications.
How long does it take to see ROI from implementing preventative maintenance monitoring technology?
Building owners typically see positive ROI within 6-12 months through documenting scheduled maintenance which results in fewer repairs and elevator concerns. The payback period is often accelerated in buildings with aging equipment or high traffic.
What’s the minimum number of elevators to justify an independent consultant?
Buildings with any number of elevators, and based on the situation, will benefit from independent elevator consulting. The savings from optimizing a few elevator maintenance contracts usually exceed consulting fees by 5-10x in the first year alone.
Can I negotiate my current contract mid-term?
While formal contract terms are binding, many elevator providers will renegotiate to retain customers, especially if you present a clear plan they can work within.







