Saving money should always be the policy for most condo associations, but now it is on people's minds more than ever.
The board of directors of a condominium homeowners association or cooperative have a fiduciary duty to the owners and members of the community and should always be looking for new ways to maximize revenues and curtail expenses.
Here are a few money saving tips:
Gas and electric brokering: Many condo associations have terminated their relationship with the local natural gas and electric providers in favor of middlemen who purchase their utilities competitively from a much larger market or surplus brokers and pass the savings on to the condo association.
Cellular phone and OTARD antennas: This is limited to mid-rise and high-rise buildings but telecommunications, television and other media services are willing to pay a lucrative leasing fee in order to maintain an antenna on a number of taller condo buildings.
Laundry room leases: Many condo associations have long-term lease agreements with laundry room service providers. As these leases approach expiration, new deals can be negotiated for a larger cut of proceeds and/or cash upfront. This is one of those relationships that should be looked at annually. In fact, on occasion one provider may be willing to buy out the balance of a competitor's lease if the property is large enough (Caveat: Be careful, some of these leases have a first right of refusal, and prohibitive penalties for wrongful termination). This also applies in some instances to parking garage vendors.
Competitive bid condo association insurance: Many boards do not hesitate to seek maintenance and repair bids, yet neglect to shop their insurance. A qualified condo association insurance specialist can get quotes for three or more carriers, and by comparing coverage versus premium cost, there can often be substantial savings.
Collecting delinquent assessments: This is a major problem for many associations, some who have historically never had a problem, but there are effective ways to minimize losses and have higher recovery rates.
Going Green: Lastly, it is trendy now to be "green" but aside from the obvious environmental benefits, there can be some cost saving and revenue recovering programs.
Learn about HOA Loans to improve condo association cash flow