Managing building expenses efficiently is crucial for maintaining profitability and ensuring tenant satisfaction. By implementing the right strategies, you can reduce costs without compromising on quality or service. Let me share 7 effective tips to help you achieve this balance:

Tip 1: Respond Quickly to Maintenance Requests

• Promptly addressing residents’ maintenance issues is key to retaining tenants. Frequent turnover disrupts cash flow due to vacancy periods and unit make-ready costs. In today’s world, tenants often share negative experiences on online platforms, which can harm your building’s reputation. A well-maintained property keeps tenants happy and loyal.

Tip 2: Reevaluate Vendor Contracts Annually

• Each year, reevaluate and bid out contracts for vendors like painters, pool service providers, plumbers, and electricians to ensure you’re getting competitive rates. When comparing vendors, always clarify potential hidden costs such as painting ceilings or inside cabinets. Balancing cost and quality are crucial – negotiating too low may result in subpar workmanship, leading to higher costs in the long term. Use tools like online vendor marketplaces or resources like Apartment Age magazine for comparisons.

Tip 3: Conduct Preventative Maintenance

• Schedule 6-month walkthroughs, including fire alarm checks, to inspect for small leaks, potential safety hazards, or signs of wear. Fixing minor plumbing or structural issues early prevents costly repairs later. Train your on-site manager to monitor property cleanliness and leaks and encourage residents to maintain their spaces to avoid pest infestations. Regular upkeep (e.g., vacuuming carpets) can also extend the life of shared amenities.

Tip 4: Use Smart Technology

• Leverage modern tech tools to monitor utilities and expenses. For example:
  • Smart thermostats can reduce heating/cooling costs in common areas.
  • Leak detectors alert you to water issues early.
  • Energy-efficient lighting reduces electricity bills and lasts longer than traditional bulbs.

Tip 5: Collect Cashless Payments

• Consider transitioning laundry machines and vending machines to digital payment systems. This not only prevents potential cash discrepancies but also makes it easier for residents to use these services.

Tip 6: Review Property Taxes and Insurance

• If property values dip, explore opportunities to appeal and renegotiate your property taxes. Additionally, review your insurance policies regularly:
• Work with brokers who can access quotes from multiple providers.
• Bundle policies where appropriate (e.g., liability and property insurance) for discounts. Ensure your policy adequately covers your risks while staying cost-effective.

Tip 7: Handle Evictions Promptly but Strategically

• Evictions are a significant financial drain—from legal costs to lost rent. Establish clear payment terms and address issues as soon as possible. Proactive communication and early interventions (like payment plans) can sometimes prevent the need for costly evictions.
• Bottom line, a vacancy is better than an eviction. Rent to good people to begin with by applying a strategic qualification process to each and every applicant.

Written by Kari Negri, Chief Executive Officer, SKY Property Management

Name any aspect of the complex world of property management and Kari Negri has been at the forefront, forging new ground, fighting for the rights of property owners and tenants alike, adding value, and making a significant difference. With a strong background in management, Kari founded SKY Properties, Inc. in 1997 to offer hands-on, boutique-level property management at a competitive price for multi-tenant property owners. Do you have a question for me? Please send your questions and comments to me at Kari@SKYprop.LA.