Spring Clean-Up: What That Really Means in Commercial Real Estate

Realty Management Partners (RMP) attributes much of its success to foresight and good planning. In addition to having a talented team, in-house and in the field, RMP maximizes its time by assigning exterior and interior tasks for its custodial properties. For example, it’s not far-fetched to factor in considerations like sweeping up the sand and salt left over from winter. The sooner this is done, the better it preserves the interior.

By replacing snowplows with outdoor cleaning and landscaping equipment, RMP prioritizes these tasks alongside specific spring projects. “In the past, we had a project scheduled to replace twenty-five exterior doors,” says Mr. Chuck Thibedeau, President of RMP. “This requires taking measurements of each door and making sure that we have the necessary materials ahead of time, so we can just move through this project and button everything up.” Factoring in possible supply chain issues, RMP plans further ahead of these larger clean-up projects. This transparency helps clients and building tenants, so when RMP schedules maintenance and project improvements, it’s a fait accompli.

The foregoing is a small example of spring cleaning. Once the snow is removed from the grounds, roofs included, the next step is to check for roof leaks, which isn’t a known issue until all of the snow is removed. “We assume that there will be some buildings that will need to be reroofed at that time of year,” Chuck acknowledges. As we've noted in previous blogs, there’s more to a project than simply scheduling it. With such significant square footage, you must order and account for a commensurate total cost of materials to ensure each project starts and finishes successfully. In other words, spring clean-up is a good time to review the financials and determine budgeting and capital expenditures.

Occasionally, an unanticipated issue must be addressed first, such as when an old air conditioning unit no longer serves its original purpose. Chuck explains it succinctly when he relays, “We had an air conditioning unit that was installed years ago for cooling a computer room, which was no longer there. That air conditioning unit hadn’t been used in a couple of years. It was abandoned in place. I explained to the client that it would make more sense, practically and financially, to remove the unit at the same time so we could replace the roof in its entirety, instead of patching around the unit, because we won’t have another opportunity to redo the roof for twenty years or so. The client agreed.”

Other spring clean-up projects decidedly fall under the “capital improvements” category. The very first concern is if permits have been obtained. An example is paving a driveway, especially when it’s within a 50-foot buffer of wetlands. For this kind of project, it is imperative to obtain conservation commission approval months in advance.

Allowing extra time for material delivery is a residual by-product of the pandemic from a few years ago. RMP has discussed this challenge previously. It merits being commented on again, as new provisos, such as inflation and working with vendors to hold a price for a period of time, become a critical variable. To illustrate this more pointedly, contractors and suppliers will look at prices and won’t hold a price for six months out. They know prices are going to change, but to what? It could be an expensive risk for them. Sensitive to that, but still needing materials, Chuck, as ever, responds with a solution. Two solutions, in fact. “Have more vendors ready and pay the vendors within fifteen days of receipt of the goods,” he asserts. His reasoning? “Vendors will always be more responsive to a client or customer who pays the bill in full and quickly.”

Understanding vendor management and working in a constantly changing environment requires responsiveness to their needs. “We have to be understanding of the challenges they are dealing with, like the increase in fuel costs,” he explains.

While the foregoing covers both a myopic view and a farsighted view of spring clean-up and initiating capital improvement projects, one helpful tool that RMP uses is its punch list. From checking irrigation and HVAC systems to painting doors, fixing interior plumbing, checking roofs for leaks, and repaving driveways, spring clean-up is a major undertaking with several moving parts, from securing permits and ordering materials to working with vendors and scheduling the maintenance team’s time. Yet RMP has a proven record of masterfully managing these external factors for the benefit of its clients and tenants, and in doing so, continues to grow as a premier third-party commercial property management company in southern New Hampshire.

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