Managing a strata scheme comes with financial responsibility, and keeping costs under control is a key priority for any strata committee. Fortunately, there are practical ways to achieve savings without compromising the quality of services or strata community satisfaction.
Below are a few examples of effective cost-saving tips that strata committees can implement to manage budgets more efficiently and support the long-term financial health of the scheme.
Review Service Contracts Regularly
The first and most beneficial action is to regularly review and renegotiate contracts with service providers, including cleaners, gardeners, and maintenance contractors. Exploring various options or consolidating services may lead to considerable savings.
At Strata Sense, we are committed to being more than just a manager and this includes reviewing existing contracts as part of the annual review of your strata scheme and making recommendations as appropriate.
For instance, Strata Sense recently conducted a comprehensive review of energy supply tenders for one of the plans we manage, coinciding with the conclusion of their service contract with the current energy provider. This strategic evaluation resulted in the identification of a more cost-effective supplier and annual savings for the strata scheme.
Embrace Preventive Maintenance
Delaying necessary repairs often leads to bigger, more expensive problems. Implementing a preventive maintenance schedule for common property like lifts, plumbing, and roofing can prevent the necessity for costly special levies and significant replacements. A well-maintained building translates to fewer unexpected issues and improved budgeting from year to year.
At Strata Sense, we are equipped with experienced strata managers who will guide you through the process and provide the most suitable recommendations for your strata scheme. We collaborate closely with building managers to ensure that maintenance plans are proactive rather than reactive.
For instance, Strata Sense recently assisted a strata scheme that had been experiencing ongoing plumbing issues, resulting in emergency callouts, and rising repair costs. In response, they engaged a certified plumber to conduct an audit of the property, which included all units and common areas, and to develop a preventive maintenance schedule. This schedule included inspections of plumbing lines and roof membranes. Within the first year, the committee successfully prevented two significant plumbing failures that could have incurred repair costs exceeding $15,000. By investing in smaller, planned maintenance activities, they not only extended the lifespan of essential assets but also benefited the annual budget.
Go Green
Implementing energy-efficient upgrades, such as LED lighting in common areas or motion-sensor lighting, can significantly reduce power bills. Additionally, installing solar panels represents a long-term investment that has the potential to lower electricity costs for the entire building.
At Strata Sense, we have successfully assisted numerous schemes in implementing energy-saving initiatives that have recovered their costs within months.
By adopting a proactive approach to financial management, strata committees can effectively reduce and/or eliminate unnecessary costs while maintaining a high-quality building for residents. The above are just some examples of specific opportunities. At Strata Sense, we are proud to partner with committees to identify these opportunities and implement tailored solutions that add real value. By taking a proactive and transparent approach, your strata committee will build a more sustainable and financially resilient community.