Essential Components Every NYC Property Manager Must Include in HVAC Service Contracts

Managing properties in New York City comes with unique challenges, and maintaining reliable HVAC systems is critical for tenant satisfaction and operational efficiency. Your HVAC systems are a critical part of the infrastructure you need to keep operating and generating revenue. HVAC maintenance agreements help prevent breakdowns that disrupt your business. For property managers overseeing residential or commercial buildings, understanding what to include in HVAC service contracts can mean the difference between costly emergency repairs and smooth, predictable operations.

Understanding the Difference: Service Contracts vs. Maintenance Agreements

Before diving into contract specifics, it’s crucial to understand the distinction between different types of agreements. An HVAC service contract has periodic routine maintenance plus it covers all service calls for FREE while an HVAC maintenance contract only includes periodic HVAC maintenance visits. The main difference between a maintenance contract and a service contract is that with a maintenance contract it only covers maintenance visits and discounts. An HVAC service contract covers all parts and labor for all breakdowns that occur.

Property managers should carefully evaluate which option best suits their portfolio’s needs and budget constraints.

Core Components of Effective HVAC Service Contracts

Scope of Equipment Coverage

Equipment covered: a complete list of each piece of equipment or appliance that is covered under the contract. Your contract should explicitly detail every HVAC unit, from rooftop systems to individual PTAC units. Rooftop HVAC, Chiller HVAC, Cooling Tower, VRF Systems, Split Packaged Units Central air conditioning and heating systems. This prevents disputes about what’s included when service calls arise.

Maintenance Schedule and Frequency

The agreement describes your ongoing HVAC maintenance services, including the scope of work, frequency of maintenance visits, duration, payment terms, and other details that need to be defined before you start a job. The maintenance agreement covers the manufacturer-specified monthly or quarterly tasks and keeps you up-to-date on any potential problems in order to schedule a repair (before it’s an unscheduled emergency).

Specify whether maintenance will occur monthly, quarterly, or seasonally. With the most basic contracts, the service includes a checkup and tune-up emphasizing your heating system at the start of the winter and air conditioning system before summer.

Response Time Guarantees

In NYC’s competitive rental market, quick response times are essential. Option one is the silver package, which includes a 2 day max response time. Our gold package includes a 1 day response time. Property managers should negotiate specific response time commitments for emergency situations, especially during peak heating and cooling seasons.

Service Inclusions and Exclusions

What Should Be Included

“Preventative maintenance” is not going to cut it. Spell out exactly what that includes and also what it does not include. Your contract should specify:

• Filter changes and cleaning procedures
• Electrical connection inspections
• Drain line maintenance
• Thermostat calibration
• Coil cleaning and inspection
• Belt and component checks

Our proactive approach focuses on preventing issues before they arise. Through regular inspections, cleaning, and tune-ups, we identify potential problems and address them promptly, minimizing downtime and costly repairs.

Parts and Labor Coverage

Our service contract covers all service calls + all minor parts. Clearly define which parts are covered under the agreement and which constitute additional charges. We offer a 20% discount on all repairs for our HVAC Maintenance Service Contract customers. Many contractors offer discounted rates on parts and labor for contract customers.

Financial Considerations and Value Proposition

They can cost between $150 and $500 per year, depending on the amount of services offered. While costs vary significantly, property managers should evaluate the total cost of ownership. Finally, we find that the savings on the energy bill take off a big chunk of the contract cost. Maintenance contracts don’t cost, they pay!

You will also save money with your commercial HVAC/R maintenance agreement through energy savings. When your equipment is clean and up to manufacturer specifications, it doesn’t work as hard when operating. What you spend on routine maintenance or energy management systems you save even more on your energy bills.

Priority Service and Emergency Support

When one has a maintenance contract they receive priority service. With a commercial HVAC service contract, your emergencies or service requests will be pushed to the front of the line, so you aren’t left waiting. This priority status can be invaluable during extreme weather conditions when HVAC contractors are in high demand.

24/7 Emergency Support: HVAC and refrigeration emergencies can happen at any time. That’s why we provide round-the-clock emergency support to address urgent issues promptly.

Documentation and Reporting Requirements

Documentation: Indicate that the customer will get a report outlining the work done, any metrics needed, and any issues found. Property managers need detailed records for warranty compliance, insurance purposes, and future planning. Ensure your contract specifies what documentation will be provided after each service visit.

Choosing the Right HVAC Partner

When selecting an HVAC contractor in the NYC area, property managers should look for companies with proven track records and comprehensive service offerings. Companies like lion enterprises demonstrate the importance of reliability and customer service in the HVAC industry. I’m sure that’s not the best way to make money, but it did show me that they value the result more than the money. I’m a life time customer now.

With over 50 years of expertise, Lion Enterprises is the contractor of choice for apartment owners, building owners and managers throughout the New York area. Look for contractors who offer transparent pricing, guaranteed work, and comprehensive coverage of different HVAC system types.

Contract Terms and Legal Considerations

You’ll receive a detailed contract written in plain English. Your HVAC service agreement is written clearly in language that’s easy to understand. You’ll know exactly what’s included and what’s not. Avoid contracts with confusing language or hidden fees. We believe in transparency and honesty in our pricing. You can trust us to provide upfront pricing with no hidden fees.

Include termination clauses, renewal terms, and procedures for contract modifications. Entire agreement: States that this contract covers everything. Any modifications will need consent from both parties.

Maximizing Your Investment

Many maintenance plans help keep warranties in place and catch when a warranty may cover a repair. A well-structured HVAC service contract protects your equipment investments and ensures optimal performance. Companies that have an HVAC maintenance contract are less likely to experience equipment breakdowns.

For NYC property managers, investing in comprehensive HVAC service contracts isn’t just about maintenance—it’s about protecting your reputation, ensuring tenant satisfaction, and maintaining predictable operating costs. During a maintenance visit we pretty much find the issues on a preventive visit and not on a reactive visit. By including these essential components in your HVAC service agreements, you’ll be better positioned to maintain comfortable, efficient properties while avoiding costly emergency situations.

The key to successful property management in New York City lies in proactive maintenance strategies. A comprehensive HVAC service contract serves as your insurance policy against unexpected breakdowns, tenant complaints, and budget overruns, making it an indispensable tool for any serious property manager.