community association guide to top 10 ways to save money
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Community Association guide to saving moneyTRANSCRIPT
C H I C A G O P R O P E R T Y S E R V I C E S I N C C H I C A G O P R O P E R T Y S E R V I C E S , I N C .
Community Association’s Guide to the Community Association s Guide to the Top 10 Ways to Save Money
Prepared by: Salvatore J. Sciacca, President and Founder
www.chicagopropertyservices.com312-455-0107 x102
BUILDING BETTER COMMUNITIES ONE ASSOCIATION AT A TIME
Table of Contents
C H I C A G O P R O P E R T Y S E R V I C E S , I N C .
1. Management services contract
6. Preventative maintenancecontract
2. Onsite management
3 Onsite building
maintenance7. 5 year capital plan8. Insurance coverage3. Onsite building
maintenance
4. Assessment collections
9. Building contract services
10 L S l P j t4. Assessment collections
5. Review utility expenses10. Large Scale Projects
1. Management Services Savings
C H I C A G O P R O P E R T Y S E R V I C E S , I N C .
Check if contract is “all inclusive”
Don’t overpay for services that you don’t need
Downgrade service plan and pay for extra services only when needed
The board may consider taking on some work y gto save money
2. Onsite Management Savings
C H I C A G O P R O P E R T Y S E R V I C E S , I N C .
Scale back from full time to part time onsite servicesservices
Scale back from multiple onsite personnel to 1 onsite person
Transfer the workload to the management back office
3. Onsite Building Maintenance Savings
C H I C A G O P R O P E R T Y S E R V I C E S , I N C .
Scale back management company full time maintenance personnelmaintenance personnel
Consider part time personnel
Scale back further to completely offsite – Management company offsite engineering staff
– Independent engineering/maintenance company
4. Assessment Collections Savings
C H I C A G O P R O P E R T Y S E R V I C E S , I N C .
Change monthly assessment collections policy to a quarterly or annual timeframeto a quarterly or annual timeframe
Save on postage and printing
Check postage and printing expenses for association
Consolidate mailings
5. Utility Savings
C H I C A G O P R O P E R T Y S E R V I C E S , I N C .
Install high efficiency light bulbs
Change light fixtures so that they accept high efficiency light bulbs
Consider long term energy contracts
Promote high efficiency water spigot fixturesg y p g
Educate homeowners on savings
6. Preventative Maintenance
C H I C A G O P R O P E R T Y S E R V I C E S , I N C .
Review ALL association elements that require routine maintenance– Building Envelope
– Mechanicals
Lif S f– Life Safety
– Miscellaneous
Consider implementing PM on the above elementsConsider implementing PM on the above elements
Prevent EMERGENCIES!
St di h h t ti l i f 12% t 18%Studies have shown potential savings of 12% to 18% of annual budgets
6. Preventative Maintenance Checklist
C H I C A G O P R O P E R T Y S E R V I C E S , I N C .
Roof
MGates/Doors
Fi iMasonry
ElevatorFitness equipment
GarbageFire/Safety
Electrical
compactor
Water booster Electrical
Plumbing maintenance
pumps
Parking lotmaintenance Parking lot
7. 5-Year Capital Plan
C H I C A G O P R O P E R T Y S E R V I C E S , I N C .
Create a working plan for capital expenditures
Revise the plan annually
Incorporate a reserve study if available
Deferred maintenance costs rise exponentially not linearlyy
8. Insurance Savings
C H I C A G O P R O P E R T Y S E R V I C E S , I N C .
Check current coverage
Some associations are over insured
Bid out current contract
Use multiple insurance agents/brokers if possiblep
Ask current broker to match lower price quotes if applicablequotes if applicable
9. Building Contract Services
C H I C A G O P R O P E R T Y S E R V I C E S , I N C .
Bid out snow removal services
Consider an annual snow contract that includes a labor and materials
Bid out janitorial and maintenance services as well
Consider scaling back the amount of service– FrequencyFrequency
– Materials
10. Large Scale Projects
C H I C A G O P R O P E R T Y S E R V I C E S , I N C .
Get an architectural engineer
Higher cost up front
Lower cost on the back end
Significantly lowers the risk of project failure
Lowers risk of lawsuitsLowers risk of lawsuits
Many associations take on large scale projects with management company support onlywith management company support only