A homeowner association (HOA) managers need to save money. As a property manager you need to keep operational costs minimum with full tenant satisfaction. When you keep your operations costs low, your profit margin increases and you can save money to grow. Therefore, cutting the costs and increasing efficiency can save money. Homeowners need to pay utility bills, maintenance bills, taxes and other dues as well. But they can save money by allocating their dues more effectively.

Our Director, Zeev Zi Pear offers five tips for HOA property manager to save money in a management contract.

1. Maintenance –

maintain your property properly

Most of the investment of any home owner goes into maintaining a rental property. Repairs and maintenance often make hole in the pockets. For avoiding big and costly repairs you need to maintain your property properly. Do not allow debris or leaves to get collected, any leakage in pipes or gutter, keep the roof in good condition. Address these issues at an early stage and save yourself from pricey expenses. Do not wait for any minor renovation or repair to become major ones. Take action on first noticing a leak or anything which demands repairs.

2. Go Green –

energy saving

No doubt going green can lower your costs and increase your energy efficiency. Going green means implementing the eco-friendly or energy saving measures to decrease household energy consumption. For example, maximize natural sunlight in your rental property, switch to LED bulbs, invest in energy efficient appliances like washing machine, use power strips, and install energy saving HVAC system.

3. Service Contracts –

property service contracts

There are multiple agreements related to property management like electricians, plumbers, repairs vendor, landscapers, and so on. One of the important ways of saving money lies in negotiating for cheaper contracts with professionals. It’s up to you how you crack the deal. Negotiating with vendors can help in reducing wastage, saves money and saves time. As a property manager always negotiate and review vendor contracts. They may charge you higher than market price which can bring into notice by reviewing the contracts.

4. Legal Costs –

legal cost of property management

Managing legal costs is one of the tasks for property manager as these can easily become out of control as they are not law experts or legal professionals. They just rely on whatever legal professionals charge them for legal issues. A good property manager should always try to save money by avoiding legal fees and discussing any day-to-day legal issues with board members at hand.

5. Hire Professional Property Management Company –

hire professional property management team

If you want to save money on property management, then you must shift to the professional property Management Company from self-management. Property management companies have expertise, experience and knowledge required in managing your property efficiently. They coordinate with all vendors and handle all financial aspects of the property including collecting payment from residents, maintaining property and reducing service costs. Property management companies have good relations with all vendors and service providers; therefore, it is easy for them to maintain a property. And by hiring their services you will enjoy the benefit of their knowledge and thereby save money.