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.
Viewing entries tagged
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.
Cut your co-op monthlies: 5 ways to 'tackle' building costs
by Leigh Kamping-Carder of BrickUnderground.com
Conventional wisdom says that almost all of a co-op building’s expenses—about 90 percent by one estimate—are fixed, leaving shareholders little say on how their monthly maintenance fees are spent, and little room to save.
But that’s not necessarily true, says Tina Larsson, co-founder of the FolSon Group, a consulting firm that helps co-op and condo boards lower their expenses. A former Wall Street