Operating a condo or HOA takes a lot of time, energy and money. You have to manage owners’ expectations, oversee regular maintenance of common areas, and stay on top of payments and collections.
The good news is, you don’t have to do it all on your own. Property management software is designed to automate most of the important tasks involved in operating an association. This software will save you time and money while improving your performance.
Read on to find out how to minimize HOA and condo association running costs without sacrificing quality or performance.
How to reduce management costs
- Don’t ignore delinquencies
- Go green
- Take advantage of deductions
- Keep vacancy rates low
- Use cost-effective commination
- Reduce the trash bill
- Apply more efficient security measures
- Give yourself time to make an accurate budget
- Review contracts
1. Don’t ignore delinquencies
It’s important to stay on top of delinquencies. The condo/HOA has already budgeted for monthly fees paid by owners, and if too many people pay late, the community could struggle to pay important bills on time.
Those responsible for collecting fees should follow any fee collection processes/rules established by the association. That might include sending out notices, adding on late fees or limiting access to association facilities until the delinquent owner makes payment.
Condo Control’s violation tracking feature is a great way to maintain fair and consistent rule enforcement. Not only can communities customize violation types, but send letters and communicate with owners through the platform.
2. Go green
Going green can help to lower costs, and you’ll be doing something positive for the environment too. Start by looking at smaller projects, such as lighting retrofits, or swapping traditional incandescent light bulbs with energy-efficient LED bulbs. These less drastic changes can make a big difference over time.
Consider going paperless as well. With a management platform like Condo Control, it’s possible to send documents electronically instead of printing them out. When our clients get permission from residents to send documents electronically, and use the announcements feature to share updates, they see a 40 – 60% decrease in printing costs. That’s a win-win for everyone.
Making sure that your openings are tightly sealed will lower your heating costs in the winter. Check your doors and windows for holes or gaps that might cause loss of air. If something is due for replacement, opt for weatherproof models this time around.
Finally, if you can, hire a professional engineer to help you weigh the costs and benefits of each solution as it relates to your community. While these upgrades have a high capital cost, they offer a tremendous return on investment.
3. Take advantage of tax deductions
Property tax is one of the biggest expenses for property managers and the prospect of reducing it can seem unrealistic. While we’re not tax experts, there are certain strategies that we can recommend to help you reduce your tax expenses.
For instance, look into maintenance costs that are tax-deductible including:
- Pest control
- Landscaping
- Cleaning supplies
- HVAC filters and light bulbs
Insurance premiums are also tax-deductible, as are operating expenses like professional services (i.e. accountants and lawyers).
Money that’s used in advertising is also tax-deductible, whether you advertise through print media, radio or online methods.
It’s important to make deductions during the same year that you paid the expense. Don’t forget to keep all of your receipts and file them through an efficient and well-organized system. You’ll enjoy the file library feature from Condo Control which allows you to store all of your important files in a safe, reliable and accessible central location.
4. Keep vacancy rates low
The best way to lower vacancy rates is to keep your residents happy. One key way to do this is to respond to maintenance requests in a timely manner. It’s also important to keep the property in ship-shape throughout the year. Failure to do so can end up costing you more. When routine maintenance schedules are not followed, you end up having to complete more significant repairs when it’s time for a new tenant to move it.
Make sure the common areas are safe and don’t appear to be run down, and take care of landscaping. The exterior paint can also affect your property’s image so it’s important to keep it looking fresh.
5. Use cost-effective communication options
Look for cost-effective communication methods that will appeal to your community. People generally don’t have the time or patience to read lengthy letters, emails, and newsletters, and many residents ignore flyers and bulletin boards.
It’s better to state your point swiftly using short and concise messages that are delivered through an accessible channel.
Condo Control offers numerous modern communication options that work for boards, property managers and residents. The platform allows you to stay connected with your community through announcements, which allow you to send texts, push notifications, emails and share messages on lobby display screens. So even if some of your residents aren’t online, they can see all of messages on the community’s display screen.
Texting is another great way to get your message across, and we’ve seen that residents actually read the text messages they get from the association or corporation.
All of this is available on the software’s cloud interface, which you can access through your smartphone or computer.
There’s also a discussion forum feature that owners can use to share ideas, ask questions and raise points about important topics that affect the community.
Don’t be shy to switch things up. Use a mixture of communication channels to make sure everyone gets the message.
6. Reduce the trash bill with a compost container
Incorporate a compost bin to reduce your annual trash bill. You must educate your community about the benefits of composting because some people might be apprehensive about separating their organic trash from the rest of their rubbish.
You’ll need the community’s approval before you implement a compost container, so it’s in your best interest to make sure that unit owners are well-informed.
Post educational signs on the notice board and send out an email blast informing owners about the types of waste they can place in the compost bin.
7. Apply innovative security measures
Property managers no longer need to settle for low-grade security cameras with grainy footage and a lone guard at the security gate. You now have access to high-tech gate-entry systems, and HD cameras that provide you with clear footage of all your common areas. This makes it easier to monitor the tennis courts, swimming pool, playgrounds, gym and other areas, 24/7.
Most modern surveillance cameras are available at affordable prices and you can monitor them remotely using a smartphone app. They may also come with cool features like a voice box or infrared vision that allows you to make out clear details in low light conditions. Not only will this lower your risk of criminal activity, but you’ll find that it’s easier to identify who’s responsible for damaging common property.
Condo Control’s security and concierge features include security guard patrol technology. Your on-site security personnel can use it to create routes and checkpoints as they patrol around the property. The best part about this feature is that you can access it straight from your smartphone. Since it stores everything in the cloud, you’ll get access to real-time incident reports, logs, and more.
8. Create an accurate budget
Most associations have had to increase their fees by several percentage points thanks to inflation. While owners don’t like to see fee increases, most will understand the reasons for the increase. However, it’s important to give members time to prepare for the fee hike.
Communities can use Condo Control’s convenient budget mailout feature to send out customized fee/assessment information to each resident with one click. This feature can save admins days of tedious work since they do not have to send out assessment notices one-by-one.
It’s also worth noting here that residents can pay these fees through Condo Control’s online payment feature. However, they can always use cheques if they prefer making payments that way. Management can also run reports to see which owners have paid their fees and whose balance is still pending.
9. Review contracts
Most boards and property managers have multiple agreements with different vendors. This includes the pool maintenance provider, the security company, landscaper, etc. Sometimes, these contracts auto-renew and the price for service goes up without the board really noticing.
Consider doing a review of all of your vendor contracts, and track your purchases. You could be wasting money on something as simple as trash collection or landscaping. Re-negotiating your agreements with vendors can help you reduce costs.
Extra Tips
– Budget for maintenance expenses before they happen. For instance, if you’re dealing with an older building, then you should expect maintenance costs to increase by at least 1.5% per unit each year. Make sure your operating account is well funded by budgeting accordingly and collecting dues on time.
– Look into your insurance premiums and if you’re paying too much, try to negotiate a lower rate. If that doesn’t work, consider getting quotes from different providers.
– Evaluate all the services you’re paying for to ensure you’re not paying for a cable or a service that you aren’t using. A service audit can be a real eye-opener and will help you get rid of unused facilities.
Conclusion
From going paperless to using cost-effective software, there’s no shortage of ways to cut costs when running an association. All it takes is a bit of creative thinking and lots of automation. Luckily, you have access to Condo Control, property management software that offers a smooth transition to the digital world.
You can move all of your operations into its cloud interface today and start reaping the benefits of going digital. You can use this software to achieve paperless operations, manage maintenance, security, amenity bookings, budgeting, collections and so much more.
Unit owners can book amenities, make payments and submit maintenance requests online. Not to mention the wide variety of communication channels offered by the software, which benefit both owners and the board.