Keeping Costs Down
We know you are interested in a streamlined budget that keeps your assessment costs down while maintaining and improving the quality of your property. That’s why we review each Association’s operations to find potential savings—for contracts, staffing, energy bills, gas, electric, water and scavenger. At every property, we use our experience and leverage with vendors to help you secure the best rates possible. See some specific case studies below.
Case Study 1: A savings of $43,000 on water costs.
LMS recently contracted with a company that can reduce water expense. This company has created a device that reduces the volume of water that goes through the water meter by compressing the oxygen in the water. LMS was lucky enough to secure this device on the first Condo in the Chicagoland region. The company placed a meter before their device and after to accurately measure the water savings. The results were amazing – the devices saved the Association $43,000 in avoided costs.
Case Study 2: Scavenger savings of $95,802 leads to no annual assessment increase.
At one property, we worked with the village to argue that scavenger fees should be at their expense, since the property has curbside pick-up and was being charged for it on their tax bill. After working with the Director of Public Works, we saved the Association $95,802 on scavenger expenses leading to no increase in 2011 assessments.
Case Study 3: Generating income through clubhouse improvements.
One property had a clubhouse that had a lot of potential, but did not get much use. We suggested simply updating the floors (hardwood, ceramic tile), bathrooms and window treatments, and changing the paint colors to attract more rental interest from homeowners. The clubhouse is currently booked solid almost every month, adding to the property income.
Case Study 4: Energy buying program saves associations $175,000 annually
LMS and Nania Energy Inc. worked to bring an electrical program to LMS Associations. It provided LMS’s small usage Associations the pricing of large usage Associations and thus saved them substantial dollars. Ultimately, a group of 16 property associations joined the program, and when the transaction completed, the final energy usage was 9% lower than anticipated. This pricing resulted in a $175,000 annual savings to our Associations. These properties will enjoy this locked-in usage rate through the end of 2017.
Case Study 5: Attorney retainer recommendation saves $2,600-$6,600 per month.
After reviewing an Association’s legal expenses, LMS noticed that by paying an attorney per hour, they were spending anywhere from $3,000-$7,000 per month on legal issues (not including homeowner collection matters). We introduced the Board to an attorney’s retainer contract, and as a result, they paid no more than $400 per month for attorney retainer services.
Case Study 6: Recurring major paint and wood projects of $20,000 eliminated.
At one property, we examined recurring major projects such as painting and wood replacement to try to find long-term solutions to eliminate the recurring need. This property was on a three-year wood replacement and painting cycle that cost the Association upwards of $20,000 every two to three years. Instead of continuing to have this work performed cycle after cycle, we suggested wrapping every piece of wood trim, window frame and balcony support beam in aluminum. This project cost $125,000 to complete, and virtually eliminated the need to paint or replace wood on the property for at least 30 years.