Being smart with a building’s financials is just one aspect of the work of a property management company. Occasionally, a building gets into a situation where operating costs have to be cut for whatever reason. But, obviously, a property manager’s goal is to reduce these costs with as little impact on building operations as possible. When you find yourself in need to cut building costs, here’s where to look first.
- Energy efficiency upgrades. For most buildings, utilities make up a significant portion of operating expenses, in some cases as much as 33%. Doing the proper maintenance on existing equipment and going with more energy efficient options when older equipment wears out will provide a relatively quick return on your money and result in future savings.
- Encourage tenants to go paperless. It’s much easier, and about 20 times cheaper for the property management company to distribute building news & communications digitally rather than on paper. With everyone being online in this day and age, there’s no reason to still be sending printed letters.
- Aggressively appeal property taxes. This is more relevant in Chicago than anywhere else. With property taxes consistently on the rise in the past few years, it’s possible your building is paying more than it has to. Consult with appeal attorneys that have experience handling appeals for a building your size.
Have other ideas about cutting building costs without interrupting operations? We want to hear about them! Get in touch with us!