If you’re a board member of a coop or condo building, you and your board undoubtedly work hard to represent your fellow owners. While owners want you to maintain your shared home at the lowest cost possible, the primary board and management responsibilities are the management of day-to-day operations, as well as special requests and emergencies. This leaves very little extra time to devote to serious cost cutting.
When your co-op or condo elects new board members, they will bring innovative and diverse ideas to the table. Residents always have high expectations that new board members will solve lingering issues, find new approaches to meet resident needs, and better manage fixed and variable costs. Utilizing social media, "greening" the building, and utilizing expert residential co-op and condo consultants are just a few of the ways board members are tackling the complexity of multi-residential housing challenges.
Many people appreciate the obvious work we do in helping boards cut budgets, save money, and run more efficiently. There are many “big” items involved with this, but small details also matter and add up. Effective communication is an example of this. Between the many moving parts and layers of management; board, super, managing agent, much can go wrong. This is a case of “too many cooks in the kitchen.” Proper technology can solve this, while at the same time creating cost efficiencies.
Most of you have heard about the effect of compounding. This is commonly known and spoken about in investments. According to Merriam-Webster it is “to pay (interest) on both the accrued interest and the principal.” The opposite is true as well. Although not often talked about, the effect of compounded savings, or reduction in expenses can be significant. We helped one association cut one particular expense, which over the next 10 years will save them, using some reasonable assumptions, over $240,000.
Working closely with your managing agent is a great start to cutting costs. The managing agent normally has a great bulk program for both electricity and energy purchases, providing an opportunity for their buildings to switch to ESCOs and reduce unit costs. Although cutting the cost of something the building uses and considers a fixed cost is a great start, it is not even half the battle. Here are 10 tips on cutting heating and electric use.
It’s that time of the year again. Soon, you will need to inform your owners that their monthly fees are increasing, again. This is in spite of a close to zero inflation economy and owners’ salaries barely (or not) increasing. Despite this, every contract and vendor that the board hires, on owners’ behalf, automatically increases their fees every year.
The Folson Group was consulted about reducing waster costs in an unconventional way for Unfixing "Fixed" Costs by Marianne Schaeffer and Habitat Magazine. We discussed a technique that is incredibly affordable and results in substantial savings for any Coop or Condo where water is included in the resident's monthly fees. Link to article here. Please like, share and comment!
When we work with HOA, Cooperative and Condominium boards on cutting costs, they often want both significant and immediate results. Your association’s expenses should be reviewed on an ongoing basis in order for it to operate efficiently and generate wealth for the owners. Here are some of the small expenses that add up over time that too often are not reviewed and/or renegotiated and some tips on how to change all that.
In theory, keeping your residents happy should be fairly easy as their interests align with yours, since you too are a resident. However, serving on the board can become very political since you as a board member have been voted in to that position, not unlike a politician voted in to theirs. So what can you, as a board member, do to keep your residents happy?
This is Election Season for most NYC co-ops and condos. You have been recently elected to the board of your co-op or condo, your largest investment: now what do you do? You may be the best Attorney, CPA, Consultant, or Financial Advisor on the planet, but how much do you know about running a building?