Big Picture Thinkers
What really determines whether a cost is fixed in a Co-op and Condo? Reducing costs increases property values!
Fixed costs are 75-85% of buildings' operating costs. Managers and Boards have come to believe that because those costs are fixed, they cannot be reduced. This is where we disagree. For instance, everyone knows that electricity is necessary, hence a fixed cost. However, we work with boards on reducing the amount of electricity that buildings consume. We then we take that one step further and also advise on reducing the cost of electricity. This has resulted in annual savings of as much as 50% in electricity costs. We think "outside the box" and thus help reduce those costs which aren't necessarily thought of as being able to be reduced.
We View Every Building as a Business
Cooperatives and Condominiums are run like non-profits, shouldn't they be run like businesses. IBM brings in consultants every year, shouldn't your building do the same?
Boards and Managing Agents only have so much time to dedicate to a building. Despite best efforts to run the building proactively, time is a limiting factor. The bulk of their time is running the day-to-day operations. Working on just one major project can often take years from start to finish. This leaves little if any time for new or "elective" undertakings.
We spend our time finding, and then recommending, and implementing cost savings. So, while the board and management continue working on operations and whatever projects they are already working on, all savings and efficiencies we implement are "Bonus" Results!
Our Process
We go through every line item, and every service and vendor contract. We then compare these to our benchmarks and look for outliers. We typically make 4 recommendations per month. After the board agrees, we proceed to implement the changes. We typically continue month after month until we've found every possible saving for your building.
Nobody Else Does What We Do
Traditional property managers have expensive overhead. We outsource majority of the administration to experts in their fields, thereby eliminating costly overhead while we can concentrate on cutting your ongoing operating costs.
The traditional managing agent runs the day-to-day administration of the building with internal hires.
We work with a series of specialized professionals that focus solely on their specific administrative expertise. This becomes a much more cost-effective setup as we eliminate the overhead that a traditional mass-market property management firm has.