Elevators aren’t the only things going up right now: maintenance prices are also rising year on year. Thankfully, a new lift management initiative by PATRIZIA AG promises to save money while simultaneously streamlining processes and increasing transparency.
In January, PATRIZIA introduced new lift maintenance agreements for properties throughout Germany, with the aim of achieving more than 3.6 million euros in savings by 2024. To simplify matters, the investment company reduced its number of service providers from 45 to five, namely KONE, OTIS, Schindler, Schmitt+Sohn and thyssenkrupp,, renegotiating their contracts and devising a uniform framework contract, which can also be used for the future.
“We worked out that we were responsible for 1,100 existing lifts with more than 200 different contracts, all set at different prices, so we decided to change the process to increase both transparency and quality,” explained Jörg Müller, Director, Head of Asset Management ESG. “We previously managed the contracts only on a property level, so it made sense to bundle them on a portfolio level to achieve higher quality and save money for tenants and investors.”
Lowering costs, rising satisfaction
The move has enabled PATRIZIA to fix the budget for the next four years, providing it with both cost security and budget transparency, ensured operator transparency and reduced internal process costs. “We now know how many lifts – elevators and escalators – we have to maintain and understand what needed to be changed within lift management,” says Müller.
In addition, the measure will help secure tenant satisfaction. The two most complaints of tenants are cleaning in general and problems with the lift management. . And the lift management market offers potential: there are about 800,000 lift installations in Germany, costing about 75,000 euros each with market growth predicted at over 6% per year.
PATRIZIA new initiative is currently limited to Germany, “where the core portfolio makes it easier to start the process”, says Müller but plans are in place to extend it across Europe.