One of the biggest challenges of condominium management is to reduce costs. After all, the syndic represents the interests of residents and the lower the quota values, the more satisfied they are. On the contrary, when expenses are higher than the budget, the manager is subject to monthly problems, criticism and conflicts.
As challenging as the task may seem, it’s possible to achieve the goal with simple actions and measures. Interested in learning more about it? Then read our post!
Do you know exactly what the condo costs are?
No doubt, the first step to lower condominium costs should be the knowledge of each one of them. Do you know what are the expenses that, put together, make up the quotas? If you have any questions, check out the following:
salaries and charges for employees;
water, energy, gas and telephone expenses;
maintenance contracts, insurance, pumps and elevators;
administrative costs, banking, reserve funds and minor repairs.
After all, how to reduce condo costs?
Although the list of expenses in a condominium is extensive, with some good practices it’s possible to reduce them by approximately 30%. This economy even contributes to the minimization of default. Here are some tips on how to do this:
1. Review human resources
Employee costs can account for up to 50% of the condominium fee. Thus, it is essential that the liquidator reviews the payroll to lower the condominium costs. While employees are vital to the smooth running of the business, some attitudes can help.
These include assessing the amount of overtime worked by employees. If they are in excess, it is important to consider if it is not convenient to make a new hire. In addition, retaining talent is indicated, as dismissal costs, as well as risks of labor lawsuits, can significantly compromise the budget.
2. Create sustainable strategies
When you think about sustainability in condominiums, what comes to your mind is just the environment preservation? Then you must know that, besides this benefit, sustainable actions are also able to help with a good economy. Strategies include replacing common light bulbs with LED bulbs and water reuse systems, which contribute to savings in electricity and water bills, respectively.
Another action to reduce condominium energy costs is to install motion sensors so that lights are not lit unnecessarily and leave off equipment not in operation.
3. Invest in preventive maintenance
You have probably heard the saying “prevention is better than cure”. Although it applies to health, it fits perfectly well with condominium maintenance. This is because when investing in preventive maintenance, the costs become lower than when an appliance breaks down and the repair needs to be done on an emergency basis.
The tip, in this case, is to have a checklist of all the equipment of the building, the maintenance time indicated by the manufacturer and other details that show the correct period for each type of inspection and repair.
4. Avoid default
Imagine a condominium with 10 apartments. Failure to pay the condominium quota in just one unit would already be responsible for the 10% reduction in revenue. You can already get an idea of the difference this makes when paying bills, do you agree? Therefore, one of the essential best practices for lowering condominium costs is to create actions that minimize default.
In this case, it is important to contact the residents as soon as possible to find out the reasons for the non-payment and the deadline for the fees to be paid. If the friendly means have no effect, the syndic must expedite the collection by legal means not to harm other owners.
5. Implement technology solutions
Using appropriate technology tools can provide more security to the residents while reducing condominium costs. There are several solutions designed for this purpose, such as remote entrance and access control system, which reduce the need for employees. As a result, there are savings in payroll and condo costs.
We hope that our article about saving on condominium expenses help you to exercise a more satisfactory management. Check out our post with 4 must-see tips for improving condo security!