The Real Cost of Elevator Downtime 

When an elevator malfunctions or goes out of service for repairs, the maintenance company’s invoice is only a fraction of the real cost for property and building owners. The ‘price’ can be paid in unhappy tenants, negative first impressions, and increased liability.  And this is just the tip of the iceberg of hidden costs when an elevator dons the dreaded “Out of Service” sign.

Let’s take a closer look at the real cost of a down elevator system. 

By the Numbers: The Direct Cost 

The most direct and visible cost of a down elevator is lost revenue. For high-traffic commercial buildings, the cost can be a staggering $5,000 per day in lost productivity, operational delays, and business disruption. Medical centers and hotels could lose $3,000 to $8,000 per day in revenue. Smaller losses can be reported for senior housing complexes, retail centers, and small office complexes. 

Further direct costs include a bill from the elevator repair company for emergency services. Standard preventative maintenance for a commercial elevator typically runs between $2,000 and $8,000 per year. However, ignoring minor wear and tear can lead to catastrophic mechanical breakdowns, such as motor replacements or emergency modernizations, which cost $15,000 to $60,000+ per incident, according to Facilities Management Online.

Hidden Costs of Elevator Repairs 

Beyond lost productivity and repair bills, building owners should also consider the often-unseen costs of an unreliable elevator system, including tenant retention and concessions, business and brand reputation, and liability exposure.

Tenant Retention & Concessions

Unreliable elevator service is a surefire way to frustrate tenants who rely on the system to get to and from work or a residence on higher floors. Nothing causes more aggravation than hiking up five floors with groceries in hand. If elevator issues are annoying enough, tenants may look for another residence with more reliable service. 

The Elevator Consultants report that “Tenant retention rates drop by 1 to 2 percentage points per major elevator disruption event in commercial office buildings. For a mid-size residential or commercial property, even a 5% increase in vacancy from unreliable service can translate to over $45,000 annually in lost rental income.”

Along with a potential rise in tenant vacancies comes the need for tenant concessions, financial adjustments, credits, or perks offered to compensate for service failures and the loss of building amenities like reliable elevator service. These concessions can add up quickly and affect your building’s or business’s bottom line. 

Business/Brand Reputation 

Businesses with elevators that are regularly out of order risk damaging their reputation and brand. Visitors quickly lose patience with businesses that have “out of order” signs on elevators. It sends a negative message to visitors, guests, and tenants who rely on the system to reach their floor. 

Liability Exposure 

Beyond mechanical costs, an unsafe elevator poses massive legal exposure. Personal injury claims can easily escalate from tens of thousands into six or seven figures. Consistent preventative maintenance protects building owners from costly lawsuits and preventable liability.

Cutting off vertical transportation deprives mobility-impaired individuals of equal access, leaving property managers vulnerable to federal accessibility penalties that double on repeat offenses, alongside mandatory compensation claims from affected commercial or residential tenants. (Title III, ADA) 

Proactive, planned maintenance with Buckley Elevators can help your business and building avoid unplanned elevator downtime. Talk to Buckley’s experts to learn how our maintenance programs keep your elevator systems running, improve your reputation, and protect your bottom line.