Success Stories
Client Satisfaction is Our #1 Priority
Managing a condominium or homeowners association is definitely not one size fits all. Communities and owners have their own set of unique needs. Each one requires a management company that is experienced, flexible and can pivot, depending on specific building challenges.
Lower Capital Improvement Costs
One of our first tasks when we takeover a new client is to review their operating budget and capital improvement plan. One client’s capital improvement plan called for replacing their cooling tower at a cost of $150,000. Upon investigation we found that the prior management company had recommended replacement because they thought the refrigerant used in the existing equipment could no longer be used. This was not true. The refrigerant was no longer being manufactured, but could be used and will be used for years to come. Accordingly, we arranged for the cooling tower to be repaired for $15,000, saving $135,000, and purchased and stored enough refrigerant for at least the next five years at an additional cost of $5,000.
Reduced Operating Expenses
To keep quality high and prices low, we maintain relationships with an extensive network of contractors. The volume of work we manage enables us to negotiate costs that are lower than those charged by management companies with their own maintenance departments. In one case we saved our client $50,000 a year, every year, compared with the management company that had their own internal maintenance department, an amount that exceeded our entire fee. Working and negotiating with contractors on behalf of our clients is one of our daily functions.
Long-Range Planning
Upon taking over management of a condominium we were faced with numerous deferred major repairs and capital replacements and insufficient reserves to address them. We convinced the Board to obtain a reserve study. The study showed the need for immediate repairs and replacements totaling millions of dollars. Although the Board did not want to address these needs, we convinced them that they could not be ignored, especially those that could structurally jeopardize occupancy. It was not possible to fund all of the improvements immediately, so we structured a five-year plan for the work using a bank loan and a ten-year special assessment to cover the loan payments. Since then the five-year plan has been completed and the Board is now properly funding for future capital expenses that will improve the safety, security and comfort of the condominium’s unit owners and residents.
Reduced Insurance Premiums
When being interviewed by a potential new client we were surprised to see their insurance premiums were $100,000 higher than the premiums for comparable properties we manage. We were told the high cost resulted from the loss of an entire building in a fire several years earlier. Upon further investigation we found that a board member’s insurance agent was only getting quotes from companies that he represented and would not allow others to bid. Once they hired us, we received permission from the Board to obtain competitive bids, ultimately reducing their insurance premiums by $100,000 annually.
Reduced Electric Utility Costs
We look at the big picture when it comes to recommending repairs. For example, one high-rise client’s heat and hot water were electric, the most expensive method of heating. When one of three boilers needed to be replaced we recommended replacing the entire system, converting it from electric to natural gas. The cost for converting the three boilers was $145,000 and the operating cost savings was $98,000 per year, every year thereafter. With the project paid off in less than two years the association was able to minimize the need for increases in future assessments for operating costs and allocate the savings for other projects and property upgrades.
Reduced Water Expense
We observed that water costs were exorbitant at a large garden apartment community. We first checked all fire hydrants, lines entering the buildings, and plumbing fixtures to make sure there were no leaks. When no leaks were found we determined that the Baltimore City water meter was broken. Thereafter, it took us almost a year to get Baltimore City to replace their meter. Once replaced, the new readings confirmed that the meter had been faulty and the City refunded the amounts paid in excess of what should have been the typical charges for the prior three years.
Emergency Response
When a unit owner called our emergency line at 5:00 a.m. about a fire sprinkler head leak, our property manager responded immediately, reaching out to the fire protection company who arrived on scene soon after. The assistant manager followed up later to provide repair estimates and arrange for the repairs to be made. Per the unit owner: “The property manager made numerous subsequent calls to me during these early morning hours to inform me that the fire protection company had been called, who to expect, ETA and then to check on the progress they were making. Such responsiveness is unexpected these days…. What was a distressing situation turned into a remarkable example of great customer service and human consideration.”
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