How to BOOST Your 2017 Condo Association Balance Sheet

After having served in the community association industry for over 15 years, I have decided to start sharing some of the immense knowledge that I have accumulated. Having an electrical engineering background, my forte was not writing initially. In fact, I don’t even ever remember taking a writing class during my university studies.

That said, I have learned to express myself through the written word and it appears that I have had a fair amount of success based on the number of followers and the feedback that I am receiving.

So I have decided to start a new format called the “CONDOBOSS SECRETS”. These editions will include behind the scenes secrets that only people in the management industry would typically know about. The reason that I am going to share these secrets is that I want board members and especially board presidents across the US to realize the immense opportunity that they have as members of community associations. And to educate board presidents so that they may serve their community association members in a way that is in the community’s best interest and not in an individual’s best interest. And lastly, I would like to create a sense of awareness with board presidents so that they realize that they are in a leadership position not in a “thankless position”.

Community board presidents have an incredible opportunity to become leaders of their community and then to take those skills and apply them to their careers and to everywhere else that requires a leader. They truly have an opportunity to change people’s lives. To help people get a greater return on their investments. To help people connect with their fellow neighbors and to improve the wellness of those members within the community.

HOW TO BOOST YOUR BALANCE SHEET IN 2017

So how can you improve your association finances in 2017? Let me share a few secrets.

• Hire a management company (if you don’t have one). The odds are that having a management company will actually SAVE YOU MONEY and not cost you more money.

• Drive DOWN the cost of Capital Projects. Are you aware of your biggest expense? Take control of the association’s biggest expense. Capital projects. Stop overspending huge amounts of money for projects that are poorly managed. Some management companies claim that offer project services for FREE. Others charge a flat fee. And some don’t offer project services support whatsoever. If your firm says that they provide it for free, I would start to question that as a viable possibility. NOTHING is for free.
• Fire your ‘CHEAP” management company TODAY and SAVE. Chances are they are making money (AT YOUR EXPENSE) without you realizing it. No company, even management companies, can survive without making money. It costs money to provide quality management services. Don’t be fooled into thinking you are SAVING money by paying low monthly management fees.
• Modify your rules and regulations AND increase your income. Add language to charge for move-in/move-out fees that are NON-REFUNDABLE. Add a provision to charge a landlord “LEASING FEE”. Add an annual “pet fee”. Increase the fine amounts if people violate the rules and regulations.
• Consolidate utility meters and SAVE. If your building/condo association has a common area boiler and a central hot water tank, you can consolidate the gas meters down to one. Each of the homeowners will save instantly as they will no longer need to pay the monthly gas meter charge.
• Stop THROWING away money on cheap fixes. Stop using the local uninsured handyman that doesn’t know the difference between a pipe wrench and a box wrench. I understand he has been a part of the association for a long time. Business is business. Wake up and stop allowing an emotional attachment to cloud your judgement as a board member. Replace that old hot water tank and heating boiler system with new and highly efficient systems.
• STOP using an expensive architects and engineers for EVERYTHING. There is no need to hire an architect to draw up repairs plans for simple leak fixes. SERIOUSLY. What a WASTE OF $$$. And for God’s sake, DON’T hire a roofing consultant to draw up a 100 page document to replace a roof for a 13 unit condo building with a basic flat roof. I can’t even believe that this is even possible and that a roofing consultant would accept money for a job that is completely unnecessary and inappropriate for that small condo association.
• Don’t be a victim of condo management fraud. Association fraud is rampant around the US. Is your treasurer engaged in his/her duties? Are you approving all invoices? Does your board even have a treasurer? Request original copies of all bank statements. If necessary, go to the management office and inspect the documents at least 2x per year. If you serve on the board, it is your duty and obligation to ensure your association finances are safe and protected against fraudulent management companies and unscrupulous property managers.
• Raise assessments and plan ahead. Don’t wait for a crises to take place. Don’t wait for your 20 year hot water boiler to fail during the winter. Replace it proactively after 15 years of service. It doesn’t matter if it could have lasted another 2 to 3 years. What matters is that you care enough about the homeowners and residents living within the community so that they don’t go without heat during the winter because of the board’s apathy to take proactive action.

• Cut costs, rebid contracts and improve curb appeal. Install LED lighting as appropriate. Sign 3 year contract service agreements that lock in prices. Upgrade your landscaping around the association. Redecorate the lobby, interior stairwells and hallways. This will improve the resale value of the association units.

SUMMARY

Take control of your association financial situation. Hire a highly competent community management company and experience the difference. Take full responsibilities as the board of director of your association and view the opportunity as a way to become a better leader.

What are you waiting for?

AUTHOR

Salvatore J. Sciacca aka “Condoboss” is the nation’s leading expert in the community property management industry and is also recognized for his stress relieving blogs and insight on personal and organizational transformation.

Salvatore has also traveled extensively around the world and has meditated with Buddhist monks in Nepal and met the world’s happiest man, Matthieu Ricard. He’s passions include cooking, traveling, meditating and hiking. He is also the founder and executive director of the Chicagoland Italian American Professionals organization and an amateur chef.

Salvatore can be reached at: 312.455.0107 x102 or at ssciacca@chicagopropertyservices.com.