How to incentivize a Multi Family Property Manager

[Dan Abts]

Looking for ideas on how to incentivize an onsite Property Manager to reduce operating expenses?

I already incentivize the onsite manager to keep occupancy up with a bonus of $10 per day per every day at 100% occupancy. 

This works very well. 

Looking for a way to provide a financial incentive for the manager to keep expenses low.  

Appreciate any and all ideas.  

[Michael Plante]

Quote from @Dan Abts:

Greg,  

Thanks for the response. It's a HUD property so rents can only be raised once a year based on a cost of living factor. Yes, I don't want maintenance to stop and that's the issue, how to get the manager to get the job done but get it done for less. Some of it's managing the contractors, the tenants, the purchasing of supplies and tools for maintenance, and possibly utility usage.

How can I incentivize the manager to increase the NOI?

Maybe that's it; if the NOI increases for the month, the manager get's a bonus?

Bonus Of x % for NOI of $xxxx. every 3 months