How do an electrical company’s service plans for landlords really work?

For an electrical company, a landlord plan is a way to turn irregular calls into repeat work. A property owner agrees to regular visits, often with preferred response for emergencies. Before you count on that revenue, you need to see how it is actually written.

Collect every plan and sort them: which are signed, which are verbal, which renew automatically and which can be cancelled easily. Check whether the landlord can take their properties elsewhere on short notice. Look at what the company promises, such as response times, and whether it has been meeting them. A plan that costs more to serve than it earns is not an asset.

Study the cash side. Is billing up front, monthly or after each visit? Are payments on time? Compare plan revenue with the labour and travel it consumes, and see how many plan customers renew. Ask whether the relationships belong to the company or to the owner personally. Your lawyer should review whether the agreements can transfer to a buyer, and your accountant can look at recurring income. Ask for a sample bill and the last few renewal notices. These show how the landlord is actually charged and whether customers stay when it is time to renew.

Key takeaways

• Sort the plans by signed, verbal, renewable and easily cancelled.
• Compare what each plan earns with the labour and travel it uses.
• Ask whether the agreements can transfer to a new owner.