PINCH today released a portfolio-level analysis of multifamily janitorial spend showing that hidden up-charges, inconsistent pricing, and invoice quality gaps are inflating costs and complicating budget management across communities. The findings highlight how decentralized contracting and delayed billing can undermine operating performance, resident satisfaction, and NOI.

Key Findings

• Up-charges are common: Of 14,866 turnover cleaning line items analyzed, 29.1% included an up-charge, averaging $78.77 per job.
• Impact varies by operator: Top 50 NMHC portfolios experienced fewer upcharges (19.86% of jobs) but at higher amounts ($92.08). Smaller operators saw more frequent upcharges (41.12%) at a lower average ($69.91).
• Pricing parity is rare: Fewer than 10% of communities within the same portfolio shared the same pricing; none achieved full parity.
• Typical base pricing (2024–2025 seasons): Studio $129.57; 1BR $133.37; 2BR $156.45; 3BR $172.51.
• Invoice completeness issues: Only 59.67% of invoice line items contained full unit/type/date details, increasing reconciliation time and variance risk.

Operational Impact

Budget exposure extends beyond line-item costs:

• Budget volatility: Late or partial invoices drive period re-opens and variances.
• Resident friction: Charges without clear documentation prompt disputes and negative feedback.
• Manager strain: Site teams spend time decoding vague invoices instead of focusing on leasing and renewals.
• Lost leverage: Community-by-community negotiations dilute portfolio buying power and obscure over-payments.

Recommended Practices for Portfolios

The analysis points to portfolio-level standards that reduce variance and improve predictability:

Photo-verified up-charges tied to each job.

• 24–48 hour invoicing so charges land in the correct accounting period.
• Standardized rate cards with adjustments only for genuine regional differences.
• Digital, unit-level invoice detail (no handwriting; complete fields).
• Streamlined vendor management to align compliance, performance expectations, and accountability.

Executive Comment

“Operators don’t just need lower rates—they need consistency, documentation, and timely billing to keep budgets predictable,” said Greg Sack, Chief Revenue Officer at PINCH. “Portfolio-wide pricing standards, photo-verified up-charges, and next-day invoicing create the visibility executives expect.”

Methodology

PINCH analyzed 14,866 turnover cleaning line items across 371 multifamily communities during the 2024–2025 seasons. Records were normalized to identify up-charge presence and amount, base pricing by unit type, and invoice field completeness (unit, size, type, date). Operator cohorts were segmented by portfolio size, including Top 50 NMHC portfolios and smaller operators.