Condo management calls for smart budgeting to maintain strong financial health. Here we look at five condo management cost-saving opportunities to future-proof your finances.

1. Adopt a Predictive Maintenance Plan

Effective condo management begins with predictive maintenance planning. You can see substantial savings when you protect your assets instead of relying on reactive maintenance. In addition, preventing component failure through informed predictions costs less over time. You can save between 8%-12% over preventative maintenance and as much as 40% on reactive maintenance costs.

How to do it:

• Schedule regular service calls with a preventative maintenance plan
• Keep a thorough maintenance log with dates services are performed to avoid overlap of service costs
• Leverage knowledge provided by service professionals to predict failure

Expected results:

You will extend the lifecycle of your assets and create a more sustainable reserve fund.

2. Leverage Spatial Data Management (SDM)

SDM ensures you optimize space and reduce operating costs – a.k.a. presenting great cost-savings opportunities. For example, work-from-home teams free up space. That space can be rented as a revenue generator. It can also be repurposed as a new amenity, such as bike storage or a dog wash centre to increase property value.

How to do it:

• Assess all common and administrative space, understand the costs to maintain it, and look for opportunities to either generate revenue or reduce costs
• Develop a space management strategy to improve space allocation and optimize space throughout the property
• Measure, classify, and assign all spaces with a cost-effective purpose

Expected results;

Reduce money wasted on unused space and optimize the value of that space with new purpose-built common areas.

3. Automate & Delegate

Finding efficiencies through automation and outsourcing can present cost-saving opportunities and reduce labour hours, creating a more productive management team.

How to do it:

• Explore condo/facilities management software to offload time-consuming tasks from Common Element Fee (CEF) processing to asset management and resident complaints to common area bookings
• Explore outsourcing internal functions such as HR and accounting

Expected results:

Reduced hours on low-value tasks with focus on higher-value tasks creates a more responsive and strategic board.

4. Focus on Energy Savings

According to the International Energy Agency, in 2021, electricity ate up about 35% of the average building’s energy, an increase of 30% since 2010. Therefore, boards need to leverage energy-saving opportunities.

How to do it:

• Schedule an energy audit
• Consider a suitable energy retrofit for your building
• Explore energy grants and loans in Ontario
• Monitor and track energy usage

Expected results:

Depending on the level of retrofits, you can save from 10% to 50% on energy consumption. You also enhance the life of assets through efficient performance.

5. Improve Your Project Monitoring

Monitoring projects allows you to find cost-saving opportunities to improve efficiencies. For example, tracking budget allotment ensures contractors work to the prices quoted, so you avoid hidden costs.

How to do it:

• Use financial project reporting to track progress from start to finish
• Use tracking to identify potential cost concerns to avoid going over budget
• Maintain a contingency fund to manage unforeseen costs discovered during the project

Expected results:

Project monitoring identifies issues before you experience significant losses. All work is verified and aligned with the quotes provided. The opportunity to reduce costs is ongoing.
The condo experts at CPO Management Inc, a full-service property management company in Toronto and the GTA, have had tremendous success helping condo corporations identify opportunities for cost savings. Reach out to us today to learn more about our condo services.