What Real Estate Pros Wish They Knew Before Signing Their First NYC Maintenance Contract
Every seasoned real estate professional in New York City has a story about their first maintenance contract—and most wish they could rewrite it. Whether you're a building owner, property manager, or part of a real estate investment firm, that first contract often becomes an expensive learning experience. The good news? You don't have to learn these lessons the hard way.
At New York Wall Repair, we've worked with hundreds of NYC properties over the years, and we've seen firsthand what separates successful maintenance partnerships from costly mistakes. Here's what the pros wish they knew before signing on the dotted line.
1. Vague Scope of Work = Budget Nightmares
The Lesson: The biggest regret among property managers is signing contracts with poorly defined scopes of work. Phrases like "general maintenance" or "as-needed repairs" sound flexible, but they create confusion when it's time to execute—or worse, when the invoice arrives.
What to Do Instead:
• Demand detailed descriptions of each service, including materials, labor, and timelines
• Specify response times for emergency vs. routine requests
• Clarify what's included in base pricing and what triggers additional charges
• Include photo documentation requirements for all completed work
Expert Tip: Insist on line-item pricing. A trustworthy contractor won't hide behind bundled rates.
2. You Didn't Check Licensing and Insurance (Really Check)
The Lesson: Many first-timers verify that a contractor "has insurance" but don't actually review the certificates or confirm they're current and adequate.
What to Do Instead:
• Request certificates of insurance (COI) for general liability AND workers' compensation
• Verify coverage limits meet your building's requirements (many co-op and condo boards require minimums)
• Confirm the contractor holds all relevant NYC licenses, including a Home Improvement Contractor License (HIC) if applicable
• Add your property as an additional insured on their policy
In NYC, working with an unlicensed or underinsured contractor can leave you personally liable for accidents, injuries, or code violations.
3. Emergency Response Time Wasn't in Writing
The Lesson: When a pipe bursts or a wall collapses, "we'll get there as soon as we can" isn't good enough. Real estate pros quickly learn that undefined emergency response expectations lead to frustration, tenant complaints, and even legal exposure.
What to Do Instead:
• Specify guaranteed response times for emergency calls (e.g., within 2 hours)
• Define what qualifies as an "emergency" vs. "urgent" vs. "routine"
• Include after-hours and weekend availability in the contract
• Establish a clear communication protocol (Who do you call? How do they confirm receipt?)
Negotiation Tip: Some contractors charge a retainer for priority emergency access. If your building is older or high-occupancy, this can be worth the investment.
4. Ignoring Compliance and Permits
The Lesson: NYC's building codes and regulations are notoriously complex. First-time contract signers often assume the contractor will "handle permits," only to discover later that work was done without proper approvals—leaving the building owner on the hook for violations and fines.
What to Do Instead:
• Require the contractor to pull all necessary permits and provide proof
• Ensure they're familiar with NYC Department of Buildings (DOB) requirements
• Confirm their team includes licensed tradespeople where required (e.g., electricians, plumbers)
• Include Local Law compliance language, especially for facade work, fireproofing, and accessibility
Red Flag: If a contractor suggests "skipping permits to save money," walk away. The risk isn't worth it.
5. No Performance Benchmarks or Quality Standards
The Lesson: Without clear quality expectations, you're left debating what "completed" or "acceptable" really means. This wastes time and damages the landlord-vendor relationship.
What to Do Instead:
• Include specific performance benchmarks (e.g., "all surfaces smooth and primed before painting")
• Reference industry standards (e.g., Gypsum Association guidelines for drywall)
• Require before-and-after photo documentation
• Set up a formal inspection and sign-off process before final payment
Best Practice: Build in a walkthrough with the property manager or owner before the contractor leaves the site.
6. Payment Terms That Favor the Contractor
The Lesson: Paying 100% upfront—or even 50%—before any work is done is a rookie mistake. If the quality is subpar or the timeline drags, you've lost your leverage.
What to Do Instead:
• Negotiate milestone-based payments tied to completed phases
• Hold back 10-20% until final inspection and approval
• Avoid cash payments; always use checks or electronic transfers for documentation
• Include penalty clauses for missed deadlines (if the project justifies it)
Negotiation Tip: Offer prompt payment (e.g., within 7 days of approval) in exchange for better rates or priority scheduling.
7. Failing to Plan for Tenant Coordination
The Lesson: In occupied buildings, maintenance work affects tenants' daily lives. Contracts that don't address tenant communication, access, and disruption often lead to complaints, delays, and even lease disputes.
What to Do Instead:
• Specify how and when tenants will be notified of work
• Define access procedures (e.g., 24-hour notice, key handling)
• Set acceptable work hours to minimize disruption
• Include cleanup and disposal requirements
Pro Insight: Buildings with strong tenant communication see fewer complaints and faster project completion.
8. Not Building in a Trial Period
The Lesson: The first contract doesn't have to be forever. Smart property managers negotiate trial periods or shorter initial terms to evaluate the relationship before committing long-term.
What to Do Instead:
• Start with a 6-month or 1-year agreement with an option to renew
• Include performance review checkpoints
• Build in a termination clause with reasonable notice (e.g., 30 days)
This gives both parties the chance to prove themselves without a multi-year commitment.
9. Choosing Based on Price Alone
The Lesson: The lowest bid often costs the most in the long run. Cheap contractors may cut corners, use subpar materials, or lack proper insurance—all of which lead to more expensive repairs down the line.
What to Do Instead:
• Evaluate bids based on value, not just price
• Check references and reviews from other NYC property managers
• Ask for examples of similar projects they've completed
• Prioritize contractors who invest in training, safety, and quality materials
Remember: A slightly higher upfront cost can save thousands in callbacks, corrections, and tenant issues.
10. No Clear Communication Plan
The Lesson: Miscommunication is the #1 cause of maintenance contract disputes. When expectations aren't clear—or aren't documented—problems multiply.
What to Do Instead:
• Designate a single point of contact on both sides
• Establish regular check-in schedules for ongoing projects
• Require written updates for all work orders and change orders
• Use a shared platform or system for tracking requests and progress
Bonus Best Practice: Schedule quarterly reviews to discuss what's working and what needs adjustment.
Final Thoughts: Get It Right from the Start
Your maintenance contract is more than a piece of paper—it's the foundation of your building's upkeep, your tenants' satisfaction, and your property's long-term value. The pros who've been in the trenches will tell you: investing time upfront to negotiate a solid, comprehensive contract saves you headaches, money, and legal risk down the road.
Ready to Review or Negotiate Your Maintenance Contract?
Whether you're drafting your first maintenance agreement or looking to improve an existing one, the team at New York Wall Repair is here to help. With years of experience serving NYC building owners, property managers, and real estate firms, we understand what works—and what doesn't.
Schedule a free contract review consultation today. Call us at (929) 319-3134 to discuss your property's specific needs and get expert guidance on building a maintenance partnership that protects your investment and delivers results.
Don't learn these lessons the hard way. Let's get your contract right from the start.
