How Connected HVAC Technology Can Transform Contractor Maintenance Programs

Smart-home technology is changing homeowner expectations—and giving HVAC contractors a new opportunity to deliver value between maintenance visits.

Why It Matters

  • Technology can make maintenance agreements more valuable to homeowners by giving them ongoing visibility into their HVAC system rather than limiting the perceived benefit to one or two annual service visits.
  • Monitoring platforms can help contractors reduce membership churn by providing tangible, year-round benefits such as equipment-health reports, alerts, loyalty rewards, and greater transparency.
  • Retrofit monitoring technology gives contractors a way to bring older HVAC systems into their connected service models, helping them build relationships with customers now and position themselves for future repair and replacement opportunities.

As a millennial homeowner, I’m accustomed to smart home technology. I purchased my home a decade ago, right as smart thermostats were becoming mainstream. Today, I receive monthly reports on my HVAC system, my kitchen appliances, and my washer and dryer. I also have a smart leak detector installed on my water main.

I love the data and insights I get into my home appliances and mechanical systems. It’s one thing to write about how temperature and humidity impact HVAC systems; it’s a different story when you’re seeing the evidence play out in your own home. This summer in Michigan has been infinitely hotter than last year!

As interesting as it is to see that data as a homeowner, it holds so much more value for you, the professionals. Proactive HVAC contractors are increasingly looking beyond traditional maintenance visits and using monitoring platforms to keep an eye on customer systems between service calls. As smart-home technology becomes more common, homeowners are becoming comfortable with the idea that their HVAC equipment can be monitored remotely, creating an opportunity for contractors to bring that same connectivity into their service models.

That’s where platforms such as SmartAC come in, using sensors to continuously monitor HVAC equipment and identify changes in system performance. For contractors, that data can create an opportunity to move from reactive service calls to proactive maintenance—and potentially turn equipment monitoring into a valuable tool for selling and supporting maintenance agreements.

Maintenance agreements can be a powerful revenue generator for HVAC contractors by creating a predictable stream of recurring income beyond unpredictable demand for service and replacement. According to EGIA's 2026 Contractor Survey Report, maintenance plans generate an average of just under $200,000 in annual revenue, with one in 10 contractors bringing in over $500,000 annually. For homeowners, the value is proactive system care and greater peace of mind; however, these maintenance programs also have a lot of churn. Homeowners may not see the immediate value of a maintenance agreement when their HVAC system is running normally, especially if they perceive the service as simply another recurring expense.

“Traditionally, the homeowner only sees any value from a membership program two days a year,” says Josh Teekell, founder and CEO of SmartAC. “That’s why we believe retention is so much higher when you have data flowing all the time because the homeowner is getting value year-round as opposed to only a few days a year when the tech is on site.”

Teekell says HVAC contractors need to adapt their maintenance-agreement offerings to changing homeowner expectations around convenience, transparency, and technology. Homeowners very rarely want to spend thousands of additional dollars on self-monitoring equipment when the cost to replace is already so high, so Teekell believes contractors should offer retrofit technology that can work with existing systems. “Most importantly, grabbing and retaining a home that has older equipment so you can be the one to replace it when the time comes is the highest ROI thing you can do,” he says.

Teekell also argues that contractors need to offer options that appeal to different homeowner buying preferences. Pricing flexibility, monthly billing, and visible value can help contractors reduce membership churn. He recommends giving homeowners multiple choices rather than presenting a single maintenance plan, including lower-cost options that incorporate technology. Monthly billing can also reduce the sticker shock associated with an annual renewal, while loyalty rewards can give homeowners another reason to stay. SmartAC's platform, for example, allows customers to see accumulated loyalty credits in the app and monthly equipment-health reports. “It’s really just about giving them a great experience when you’re in person, reminding them of the value of that peace of mind that they’re getting through technology,” Teekell says.

Click here to see firsthand how HVAC contractors are leveraging technology to boost membership programs.

The future of maintenance membership programs is about more than scheduling annual tune-ups. By combining recurring service with technology, proactive system monitoring and visible customer benefits, contractors can create memberships that deliver value throughout the year. The goal is to give homeowners more reasons to stay while giving contractors a stronger, more predictable customer relationship—and a better opportunity to earn the next service or replacement job.

About the Author

Nicole Krawcke

Nicole Krawcke

Nicole Krawcke is the Editor-in-Chief of Contracting Business magazine. With over 10 years of B2B media experience across HVAC, plumbing, and mechanical markets, she has expertise in content creation, digital strategies, and project management. Nicole has more than 15 years of writing and editing experience and holds a bachelor’s degree in Journalism from Michigan State University.

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