Condo associations are tasked with budgeting and seeking improved ways to reduce expenses and saving money. It is difficult to slash expenses because of several considerations that go into making condominiums an option for homeowners. It would make perfect sense to review priorities and ensure efficient use of the allocated budget.
These are effective ways that condo associations can reduce expenses and save money.
Hiring a more effective condo management agency
Lots of businesses feel smart when they hire low-priced services. Is there anything wrong with hiring low-priced services? No, they can have a positive effect on your business expenses. However, condo associations should view their business in a more professional way. Sometimes, the costs of amending faults and shortcomings of hiring low-priced services or agencies can outweigh the benefits. That is to say, if you can get rid of a huge problem that is affecting your profits, call a professional to get the work done.
It is more long-term and sustainable. Condo associations especially are affected more by hiring low-priced services. They may think they are doing the right thing by hiring a low-cost management company on the short-term. But the difficulties are weighty because most mistakes that make it into community projects are almost permanent. They end up losing money from their business, and they have no other option than to pay more for the services of a professional management company, given the big blowback.
Low-cost condo management agencies have proven over time not to be effective and trusted enough to provide the top-tier level of expertise needed to cut down on expense reduction and negotiation leverage, unlike high-priced, pro-driven condo management agencies that can offer you top services and even more.
Another problem that condo associations face with low-cost management agencies is lack of transparency which results in lack of accountability.
Review and Reschedule Community Projects and association employees.
Growing associations handle a number of projects. These projects attract investors and put condo associations in good relationships with beneficiaries and insurance terms. But when budget becomes the question, projects should be reviewed and sorted according to level of importance and essentiality. Sometimes it can be a question of prioritizing comfort over aesthetics. Aesthetics can easily improve the perceived value of properties, but comfort, maintenance, in the long run, determines growth and associations ROI.
Condo managers can take some time to explain these issues among themselves and make sure that every party involved is clear on what is to be done.
Reviewing your Insurance policy
Usually, insurance policies are often so complete. That is, they are not only difficult to read, but also difficult to understand. It could be the reason why many condo associations don’t bother trying to get competitive quotes. Typically, insurance happens to be one of the most significant condo association costs. It is also one of the most prominent means to save expenses for a condo association. Condo associations can always get external help to ensure getting the best deals out of insurance firms. When done right, this can be a great way to manage costs.
Remove unnecessary legal costs.
Undoubtedly, it is crucial to consult with law firms on some issues. There are times when going for a law firm is absolutely not needed, not when you can resolve the matter through other means. If your condo association has some collections issues, it is crucial to follow up on those uncollected assessments, but only when it is right.
Transit to more energy efficient technologies
You can change all your incandescent bulbs to spiral fluorescent bulbs for beginners. This is a great way to actually save costs. If you want to take things up a notch, you can switch to LED lighting. An example, you can change all EXIT type lighting that is always on 24 hours to sensor LED lights that turn on when needed or off when not.
Review and renegotiate service contracts
It is advisable that you go back to your waste disposal company, janitorial service company, or landscape Services Company and renegotiate a better deal. Also, review costs of having a certain number of employees. Building a relationship with your vendor contractors can lead to open discussions on how they can help you. Negotiate contract bids to find a middle ground, or seek out other contractors to know if there are better bids that can suit your budget needs.
It is no news that most condo associations are being ripped off. While some of it could be a result of poor management decisions. Condo associations need to go back to the board and look for ways to cut down on expenses. Doing this will ensure quality and long term business growth. At Core Accounting, we make budgeting seamless. We specifically serve condo associations and ensure proper management of funds.