Condo fee: how to reduce

High unemployment rate, low purchasing power: with the economic crisis, the demand for spending cuts also hits the residential budget, demanding that liquidators and administrators seriously rethink the condominium fee.

If a reduction in value is necessary, it is also a big challenge. The list of condominium expenses is long, involving charges, payroll, maintenance, light in common areas, water, cleaning materials and more.

In general, the average expense of the condominium account is structured as follows:

40 to 50% of the amount is allocated to employee payroll costs;
From 20 to 30% of the resources are spent on consumption of light, gas, telephone and water;
Approximately 15% of the budget is allocated to the maintenance of elevators, various types of insurance and pumps;
Approximately 10% of the condominium fee is earmarked for administrative expenses, reserve funds, minor repairs and bank charges.

Despite the challenge, it is possible to use efficient actions to reduce the condominium rate by up to 40%, while also minimizing the level of defaults. Below, we list 6 of these strategies. Check out!

Reconsider overtime and staff

As we saw in the distribution of the values above, the costs with employees and payrolls represent a large portion of the expenses, reaching up to 85% in certain condominiums.

A first possible action is to seek a significant reduction in employee overtime, rethinking the organization of overtime work. Adhering to third-party companies (replacing the traditional hiring of personnel) and wiping out the workforce are also possible alternatives.

Changes in the management of people in the condominium, however small, can have a considerable impact on the budget. The important thing, in this process, is to study what are the essential activities for the condominium functioning and which of them can be outsourced or even eliminated.

Combat default

Obviously, defaulting residents are some of the biggest villains in balancing accounts and a possible reduction in the condominium fee. In times of economic crisis, more than ever, it is worth investing more assertively in actions to directly combat the problem.

Promoting debt negotiation meetings, defining discounts for tenants who pay the fee before the due date and expediting lawsuits for specific cases are highly recommended strategies.

skymarketing strives to be Pakistan’s biggest real estate developer ever, guaranteeing the highest international standards, prompt execution, and lifetime customer loyalty. For further detail visit tajarat.com.pk

Bet on software technology for condominium

Investing in intelligent management systems can also represent significant savings in the monthly budget of the condominium. This is because specialized software in the segment reduces paper and storage expenses, for example, in addition to increasing productivity by replacing manual processes.

Automation of 2nd copy of slips (which also contributes to the reduction of bad debt) and elimination of costs with sheets and printing are some of the economic advantages of the adoption of technology in management.

Prioritize water and electricity savings

This is the time to prioritize the condominium’s electricity and water savings more than ever. At first, the most appropriate is to identify possible sources of waste.

To minimize the energy bill, frequent exits are betting on the elevators’ programming and the installation of presence sensors in the common areas of the condominium.

With regard to water, the basic saving actions include installing flow reducers, seeking rainwater reuse solutions and checking for possible leaks.

The ideal, however, is to install individual water meters in the condominium, as the measure encourages water savings in the building as a whole and can represent up to 20% reduction in the water bill.

Perform preventive maintenance

If they are an investment at first, preventive maintenance represents - a lot - savings in the long run. It is essential that the condominium implement and maintain a maintenance schedule, which is much more affordable than repair works.

Some examples of important maintenance that should include the planning of the liquidator or administrator are:

Water bombs;
Lightning rods;
Waterproofing;
Elevators;
Identification of possible leaks.

Make an annual budget

Planning the budget annually is one of the most efficient strategies to reduce the value of the condominium fee. The document, after all, makes it possible to forecast all expenses for next year.

With the possibility of organizing and rethinking the expenses that influence the rate, managers can identify strong points of savings and restructuring of expenses. It is worth mentioning that the task requires specialized support, which usually happens by hiring condominium administrators.

We hope that the tips make a relevant difference in the reality of your condominium. Good work and good savings!

Source: Tajarat.com.pk

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**High unemployment rate, low purchasing power: with the economic crisis, the demand for spending cuts also hits the residential budget, demanding that liquidators and administrators seriously rethink the condominium fee.** If a reduction in value is necessary, it is also a big challenge. The list of condominium **expenses** is long, involving charges, payroll, maintenance, light in common areas, water, cleaning materials and more. In general, the average expense of the condominium account is structured as follows: - 40 to 50% of the amount is allocated to employee payroll costs; - From 20 to 30% of the resources are spent on consumption of light, gas, telephone and water; - Approximately 15% of the budget is allocated to the maintenance of elevators, various types of insurance and pumps; - Approximately 10% of the condominium fee is earmarked for administrative expenses, reserve funds, minor repairs and bank charges. Despite the challenge, it is possible to use efficient actions to reduce the condominium rate by up to 40%, while also minimizing the level **of defaults**. Below, we list 6 of these strategies. Check out! ## **Reconsider overtime and staff** As we saw in the distribution of the values above, the costs with employees and payrolls represent a large portion of the expenses, reaching up to 85% in certain condominiums. A first possible action is to seek a significant reduction in employee overtime, rethinking the organization of overtime work. **Adhering to third-party companies** (replacing the traditional hiring of personnel) and wiping out the workforce are also possible alternatives. Changes in the management of people in the condominium, however small, can have a considerable impact on the budget. The important thing, in this process, is to study what are the essential activities for the condominium functioning and which of them can be outsourced or even eliminated. ## **Combat default** Obviously, defaulting residents are some of the biggest villains in balancing accounts and a possible reduction in the condominium fee. In times of economic crisis, more than ever, it is worth investing more assertively in actions to directly combat the problem. Promoting debt negotiation meetings, defining discounts for tenants who pay the fee before the due date and expediting lawsuits for specific cases are highly recommended strategies. [skymarketing](https://www.skymarketing.com.pk/blue-town-sapphire-lahore/) strives to be Pakistan's biggest real estate developer ever, guaranteeing the highest international standards, prompt execution, and lifetime customer loyalty. For further detail visit [tajarat.com.pk](https://tajarat.com.pk/) ## **Bet on software technology for condominium** Investing in intelligent management systems can also represent significant savings in the monthly budget of the condominium. This is because specialized **software in the segment** reduces paper and storage expenses, for example, in addition to increasing productivity by replacing manual processes. Automation of 2nd copy of slips (which also contributes to the reduction of bad debt) and elimination of costs with sheets and printing are some of the economic advantages of the adoption of technology in management. ## **Prioritize water and electricity savings** This is the time to prioritize the condominium's electricity and water savings more than ever. At first, the most appropriate is to identify possible sources of waste. To minimize the energy bill, frequent exits are betting on the elevators' programming and the installation of presence sensors in the common areas of the condominium. With regard to water, the basic saving actions include installing flow reducers, seeking rainwater reuse solutions and checking for possible leaks. The ideal, however, is to install individual water meters in the condominium, as the measure encourages water savings in the building as a whole and can represent up to 20% reduction in the water bill. ## **Perform preventive maintenance** If they are an investment at first, preventive maintenance represents - a lot - savings in the long run. It is essential that the condominium implement and maintain a maintenance schedule, which is much more affordable than repair works. Some examples of important maintenance that should include the planning of the liquidator or administrator are: - Water bombs; - Lightning rods; - Waterproofing; - Elevators; - Identification of possible leaks. ## **Make an annual budget** Planning the budget annually is one of the most efficient strategies to reduce the value of the condominium fee. The document, after all, makes it possible to forecast all expenses for next year. With the possibility of organizing and rethinking the expenses that influence the rate, managers can identify strong points of savings and restructuring of expenses. It is worth mentioning that the task requires specialized support, which usually happens by hiring condominium administrators. We hope that the tips make a relevant difference in the reality of your condominium. Good work and good savings! **Source**: [Tajarat.com.pk](https://tajarat.com.pk/) [Patterjack dog breeds](https://patterjack.com/blog/jack-russell-terrier) [murshidalam](https://murshidalam.com/who-is-rouba-saadeh/) [fitbit-fitness](https://techiedigest.com/which-fitbit-fitness-bracelet-is-best-for-you/)

#11 Condo fee: how to reduce