Check Out Some Creative Ways Your Board Can Save Money

Light bulbs. Typically, a property's biggest controllable expense is energy consumption, and buildings that haven't already addressed lighting will find it a relatively easy target. Compact fluorescent bulbs are more expensive, but they last longer and consume less energy, saving money in the long run.

The heating system. Tuning the heating system holds the promise of greater rewards, but the process may be complicated. New York law permits indoor temperatures to be slightly lower at night, which can save on fuel bills. Properties that burn oil can lock in prices at the end of each year for the following season. And a professional energy audit can find ways to make your heating plant and building more efficient, though it may take a while to recoup the significant up-front costs through savings. 

Proactive maintenance. Most buildings tend to avoid preventive and proactive maintenance. Ongoing maintenance can prevent small problems from getting out of hand and becoming more expensive. And every building system, from wires to windows, has a finite lifespan. Proactively replacing aging equipment, rather than waiting for a catastrophic failure to occur, can save money in the long run.

Accepting bids. When you do need to do a big, expensive job, bidding it requires some legwork but can prove worthwhile. You should research costs of similar jobs and prepare written specs for your project so you get accurate quotes from three reputable firms. Don't automatically go for the lowest bid, either, because the bidder may intend to cut corners and cause more costly problems down the line. Have a lawyer or manager review the contract before signing, and make sure the contractor has sufficient insurance coverage given the project's size.

Limit overtime. When it comes to payroll, sometimes more is less. It may be more cost-effective to hire temporary workers to cover additional shifts around holidays and vacations than to give the hours to regular staff at time-and-a-half overtime rates.

Encourage staff training. Many unions offer free classes and certification courses, but even if they cost money they may be worth it. Training can be good for employee morale, giving them a tangible career benefit and fostering a sense of ownership over the state of the building. The building benefits by having well-trained staff who can take on important tasks and by promoting an atmosphere of professionalism and community that reduces friction and the possibility of legal action.

Shopping around. Comparison shopping is a way of life in our consumer society. Buying goods and commodities in bulk is one great way to save money. It comes naturally to large complexes and management companies, but smaller properties can band together into housing associations to get in on the action. For services, be mindful of the fees charged by contractors and professionals, and don't be shy about building up a stable of trustworthy vendors. You might also creating a little competition between them and drive prices down. Which isn't a bad thing.