C H I C A G O P R O P E R T Y S E R V I C E S I N C C H I C A G O P R O P E R T Y S E R V I C E S , I N C .

Community Association’s Guide to the Community Association s Guide to the Top 10 Ways to Save Money

Prepared by: Salvatore J. Sciacca, President and Founder

www.chicagopropertyservices.com312-455-0107 x102

BUILDING BETTER COMMUNITIES ONE ASSOCIATION AT A TIME

Table of Contents

C H I C A G O P R O P E R T Y S E R V I C E S , I N C .

1. Management services contract

6. Preventative maintenancecontract

2. Onsite management

3 Onsite building

maintenance7. 5 year capital plan8. Insurance coverage3. Onsite building 

maintenance 

4. Assessment collections

9. Building contract services

10 L S l P j t4. Assessment collections

5. Review utility expenses10. Large Scale Projects

1. Management Services Savings

C H I C A G O P R O P E R T Y S E R V I C E S , I N C .

Check if contract is “all inclusive”

Don’t overpay for services that you don’t need

Downgrade service plan and pay for extra services only when needed

The board may consider taking on some work y gto save money

2. Onsite Management Savings

C H I C A G O P R O P E R T Y S E R V I C E S , I N C .

Scale back from full time to part time onsite servicesservices

Scale back from multiple onsite personnel to 1 onsite person

Transfer the workload to the management back office

3. Onsite Building Maintenance Savings

C H I C A G O P R O P E R T Y S E R V I C E S , I N C .

Scale back management company full time maintenance personnelmaintenance personnel

Consider part time personnel

Scale back further to completely offsite – Management company offsite engineering staff

– Independent engineering/maintenance company

4. Assessment Collections Savings

C H I C A G O P R O P E R T Y S E R V I C E S , I N C .

Change monthly assessment collections policy to a quarterly or annual timeframeto a quarterly or annual timeframe

Save on postage and printing

Check postage and printing expenses for association

Consolidate mailings

5. Utility Savings

C H I C A G O P R O P E R T Y S E R V I C E S , I N C .

Install high efficiency light bulbs

Change light fixtures so that they accept high efficiency light bulbs

Consider long term energy contracts

Promote high efficiency water spigot fixturesg y p g

Educate homeowners on savings

6. Preventative Maintenance

C H I C A G O P R O P E R T Y S E R V I C E S , I N C .

Review ALL association elements that require routine maintenance– Building Envelope

– Mechanicals

Lif S f– Life Safety

– Miscellaneous

Consider implementing PM on the above elementsConsider implementing PM on the above elements

Prevent EMERGENCIES!

St di h h t ti l i f 12% t 18%Studies have shown potential savings of 12% to 18% of annual budgets

6. Preventative Maintenance Checklist

C H I C A G O P R O P E R T Y S E R V I C E S , I N C .

Roof

MGates/Doors

Fi iMasonry

ElevatorFitness equipment

GarbageFire/Safety

Electrical

compactor

Water booster Electrical

Plumbing maintenance

pumps

Parking lotmaintenance Parking lot

7. 5-Year Capital Plan

C H I C A G O P R O P E R T Y S E R V I C E S , I N C .

Create a working plan for capital expenditures

Revise the plan annually

Incorporate a reserve study if available

Deferred maintenance costs rise exponentially not linearlyy

8. Insurance Savings

C H I C A G O P R O P E R T Y S E R V I C E S , I N C .

Check current coverage

Some associations are over insured

Bid out current contract

Use multiple insurance agents/brokers if possiblep

Ask current broker to match lower price quotes if applicablequotes if applicable

9. Building Contract Services

C H I C A G O P R O P E R T Y S E R V I C E S , I N C .

Bid out snow removal services

Consider an annual snow contract that includes a labor and materials

Bid out janitorial and maintenance services as well

Consider scaling back the amount of service– FrequencyFrequency

– Materials

10. Large Scale Projects

C H I C A G O P R O P E R T Y S E R V I C E S , I N C .

Get an architectural engineer

Higher cost up front

Lower cost on the back end

Significantly lowers the risk of project failure

Lowers risk of lawsuitsLowers risk of lawsuits

Many associations take on large scale projects with management company support onlywith management company support only