An Ultimate Guide to Home Maintenance Contracts

Home maintenance contracts are service agreements that greatly benefit you and your customers. 

Your customers can relax knowing that your home maintenance company will be there whenever there’s an issue. And that they do not have to go around hunting for the right home maintenance service experts at the crucial hour when something breaks down—in case of urgent repairs or roof leaks, for example. 

While you can enjoy peace of mind knowing that you do not have to go through dry spells in terms of money because there’s an auto-renewing contract making money for you each month without having to find new clients. 

Contracts do much more than that, but you get the theme. 

Maintenance contracts, in our opinion, are non-negotiable unless you want to drain time and energy discussing service terms back and forth, hunting clients, or worrying about where your next income is going to come from. 

If you are unsure about whether to proceed with maintenance contracts or not or you are looking for a checklist to create your home maintenance contracts, this is the right place. 

Let’s discuss home maintenance contracts and rid you and your customers of all worries surrounding it, shall we?

6 Reasons to Get Service Contracts

A home maintenance contract helps you manage your business better and increase profits. Check out some of the benefits below.

1. Contracts help to define the terms of an agreement

A home maintenance contract is a legally binding agreement between two parties (homeowners and the contractor) stating what each party is obliged to do and not do and how they should fulfill these obligations. Clearly communicating these duties reduces the chances of miscommunication and conflict. Service businesses use contracts to clearly elaborate on and document the terms of fulfilling the discussed service. 

2. A service contract provides a steady income

As a contractor, if you’re unsure of how to monetize your company, maintenance agreements are a simple approach to guarantee a consistent income.

Clients indeed give you money each month to keep their contracts in force. But what does this imply for your company? One benefit is that it enables you to predict at least a portion of your monthly and annual income, which removes much of the uncertainty surrounding your ability to generate enough cash flow to sustain your business.

You can weather weak seasons or unexpected dips in big orders thanks to the consistent income from maintenance agreements. Additionally, it frees you from the constant need to find new customers to concentrate on other aspects of your organization.

3. Contracts provide bigger jobs

You should provide maintenance contracts to your clients if you don’t already.

First, waiting until a significant issue could have resulted in the homeowner missing more severe problems that inspection and maintenance can catch. Customers are more likely to use you for substantial repairs, remodeling, and installs if you provide discounts because of the service contract. You will also have a better chance of getting the job because you have a devoted customer.

4. Contracts help grow your business

This isn’t the first thing that comes to your mind when thinking about contracts but contracts prove that you take your job seriously and are committed to performing. Contracts offer numerous businesses the chance to increase their earnings via repeated customers. 

But, as a contractor, if you want contracts to fuel your business, there are two things you must know – 

  • You can increase the value of your contract terms by negotiating them

You can boost revenue by negotiating favorable contract conditions, such as selling an additional service. The best time to make these adjustments is during the negotiation phase of contract development.

  • Streamline the contract process

Contracts formalize agreements that generate revenue.

Obstacles that inhibit quick and frequent agreement also pose a revenue obstacle.

The business team may lose out on opportunities to close deals if their legal team delays a contract due to time restrictions. Software that permits self-service by business teams might quickly fix this issue. Yet, many companies still waste money using antiquated, ineffective contract workflow procedures.

Making the process of buying a car as fluid, easy, and efficient as possible will eliminate missed chances and wasted time.

5. Contracts prevent disagreements between parties

You can approach contracting in various ways, but they all have one thing in common: they’re a way to create an agreement between two parties and prevent conflicts and disagreements.

Contracting is essential to any home maintenance project. Both parties sign contracts before they begin their work together so that they can be sure that everyone understands what is expected of them and they can be held accountable if those expectations are not met.

During an excellent contracting process, parties will have opportunities to discuss, revise, and suggest terms so there won’t be much (if anything) left on the table. It is especially true when the process is collaborative.

6. Improves Customer Satisfaction

Regular maintenance visits (for plumbing, landscaping, electrical issues, cleaning, etc.) are a great way to build your relationship with your customer. It gives you an opportunity to do a great job and allows them to see the exceptional quality of your service.

If you’re able to do this well, customers will come back repeatedly because they know they can trust you to take care of homes. And if your customer like what they see, they might even refer your business to their friends!

It’s also an excellent chance to learn more about how your customers use their homes—and what problems or concerns they have with it. You can use that information in the future when planning future projects or services for them.

How to Form a Home Maintenance Agreements

Here are some guidelines for ensuring your home maintenance contracts are a success. It can help you maintain a long-term relationship with your customers.

1. Choosing the right cost

It is essential for contractors to establish the right prices for the deal when it comes to managing a business.

You need to know if you’re overcharging your customers or if they’re getting a fair price based on supply and demand. You also want to know if there are ways to improve your pricing strategy by lowering costs, increasing revenue, or both!

But the numbers can be a pain to crunch. Markets and competitors are constantly changing, so your services must also change. Despite this, any business owner needs to take care of these tasks.

When making a contract, it is essential to negotiate in a way that generates a profit and is not overly expensive or exaggerated.

2. Select the appropriate contract provisions

As an HVAC service provider, you’ve probably noticed that the most popular contract length is 12 months. Most homeowners want to commit to a longer period and know what they will be paying for. Because of course, there is a range of home maintenance services—gutter cleaning, plumbing, sump pump, painting, repair of heating system, and more.

However, if the homeowner wants a monthly agreement, be sure to offer it! You never know when someone might want to sign up for something like this, and you can’t lose out on business just because you don’t have a monthly option available.

3. Make a policy for renewal

When you offer home maintenance agreements to your customers, let them know that you will automatically renew their contract. This will save them time, hassle, and cost of finding a new service provider. In turn, they will be less likely to switch providers as they will appreciate your company more.

Whether you offer annual or monthly contracts, the process is much easier if you provide automatic renewal. Knowing what to expect from your company and when will be helpful to your customers.

In addition, automatic renewal gives you more time to focus on expanding your business and selling new products and services. You’ll have fewer worrying things during busy times, which means more time for growth!

4. Establishing ground rules for legal disputes

When drafting terms of service, you must ensure that your customers know what they’re getting into before signing on the dotted line. You must include all the standard terms and conditions—but it’s also good to think about what happens if things go wrong.

Some businesses use arbitration to settle disputes, in which the parties involved agree to settle their differences with an outside arbitrator. They will decide how much each party should pay in damages or compensation. Another option is mediation, where both parties sit down with a neutral third party who will try to help them devise a compromise solution.

If you ever find yourself in legal trouble with another company, consider including clauses that limit what each party will be held responsible for in the particular situation.

5. Provisions for contract termination

Include a clause for terminating the home maintenance services agreement. For example, you can state that the contract is automatically null and void if either party convicts fraud or other specified crimes. Another example is if one party breaches an agreement, the other party can end the relationship without liability on their part if they notify the breaching party in writing.

6. Don’t forget to do your homework

If you’re looking to help your clients keep their homes in top shape, extending maintenance agreements is a great way to do it. But before you get started, you should know a few things about these contracts.

A maintenance service contract extended without comprehensive information about the properties and equipment of your client can adversely affect your company’s finances. Ensure that the serial number of new equipment is recorded when the homeowner installs it with a home maintenance services agreement.

Examine the condition of the homes before extending the service agreements as they are investments for your company. As a result of too many visits and repeat repairs, the cost of maintaining homes is too high. 

To make sure homeowners know exactly what to expect from future HVAC upgrades, these agreements should set limits on what is covered.

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As part of a maintenance agreement, one party commits to taking care of, repairing, and maintaining the other party’s property. A maintenance agreement is helpful because both parties know what they can expect before committing to anything long-term.
You will calculate the cost of a maintenance visit by multiplying your hourly rate by the time it takes to complete the task. For example, if it takes three hours to service a printer, multiply three hours by your hourly rate. If you need to order parts or perform other repairs, it will bill you separately for those costs.
Contracts stop disagreements between parties. They are particularly effective at preventing future conflict and disputes because they are a set of terms that both parties have agreed upon.


Home maintenance plans are advantageous for both the provider and the client, and most companies swear by them. Contracts are a crucial part of the business. They ensure everyone knows what they’re getting out of the arrangement and what they have to deliver. 

Also, you obtain a consistent income that enables you to foster a long-lasting relationship while enhancing your brand’s reputation.

When you’re a provider of home maintenance agreements, you know that the best way to keep your clients coming back for more is to provide them with a reliable service that maximizes the life of their equipment. 

More dependability, peace of mind, and increased asset performance are all benefits that customers receive. 

To ensure that maintenance plans work successfully for you and your team, you should first take care of your contract process and any ongoing pain points. Customers seek your assistance because they need it, so develop a comprehensive bundle that will address their requirements and provides comfort. By giving your clients more value through your services, you are sure to build long-lasting client relationships. Leaving you with an added tip to always pitch contacts during service calls.

Author Bio

Gaurang Bhatt

Gaurang Bhatt is a techie in himself with an ability to solve problems technically and present solutions in the form of a product. He is one of the pioneers to curate FieldCamp with his 15+ years of knowledge and expertise in providing solutions to home service industries. Gaurang aims to overcome challenges faced by service business owners through software solutions and blogs.