11/19/2023

Some Condominium Associations and Condo Associations Share Their Money Savings Tips

Some condominium associations and HOAs share their money saving tips. Read the following from HOAs and Condominium Associations that share their money saving tips.

Cutting the Cable Cord.

One condominium association found a way to save money by canceling its cable TV contract. The condominium association provided basic cable TV service to all units. It was costing the condominium association about $13,000 per month (it was a BIG condominium). The governing documents of the condominium didn’t require the condominium association to provide cable service, so the association simply got rid of it. Cut the cord. Saved a tremendous amount of money.

Do any of our condominium associations have cable service and pay for it?

A Board that Dug Deep

One condominium association board took a hard look at its budget and determined where it was overspending and made necessary adjustments. The first thing it did was to renegotiate maintenance contracts, particularly landscaping and snow removal. The condominium association’s contracts for landscaping and snow removal service were nearing their expiration. This natural end provided the condominium association with an opportunity to renegotiate prices.

However, the condominium association also approached a few service providers mid-contract, explaining budget constraints and emphasizing the long-standing relationship between the condominium association and the service provider. To the condominium association’s surprise, several providers were open to renegotiation, especially when presented with the possibility of extending the contract duration in exchange for better rates. This condominium association found that by shopping around and negotiating contracts, the community saved approximately 15% per year.

One significant area where the condominium association noticed overspending was in its monthly landscaping services. It was paying for weekly lawn maintenance, even during those months when the growth was minimal. By adjusting the frequency of those services during slower growth months, it managed to cut back on unnecessary expenses.

In addition, the local utility provider offered a complimentary energy assessment for the condominium association, which it took advantage of. The audit provided the condominium association with a comprehensive report highlighting areas of potential energy savings. On of the primary recommendations was the transition to LED lighting, especially for outdoor areas. So it replaced older lighting fixtures with LED bulbs and installed automated systems for outdoor lighting. That saved roughly 10% in annual energy costs.

All of those changes required the condominium association took a lot of effort and forward thinking. But they ended up saving the community a huge amount, which it allocated to increasing its reserve funding and investing in the longer term needs of the condominium association.