CallSource^® Aim Higher

Ways To Control Operating Expenses – Pt.1

by Doug Chasick, April 6 2009

Here are some ideas for you to consider using at your property; some are really obvious, yet, it's amazing how often the most obvious things get overlooked! Let's see how we can save a couple of bucks!

1. At the beginning of the year, take a legal pad and make one page for each budget category. At the top of each page, label the following columns:

2. Under "opening balance", enter the annual amount for this budget category. Every time you spend money in this category, enter the date, explanation of the expense, and the amount. Then subtract from the balance to get the amount of money you have left in this category. At the end of each month, subtotal your total expenditures for the month and compare them to the budget for the month. You should also subtotal the cumulative spent for the year vs. the cumulative budgeted in each category. By knowing where you are on a daily basis, you can make adjustments as needed to achieve your budget goals.

3. Keep a utility log for water, sewer, electricity and gas. Each month, enter the information from each bill, by account or meter number on the log. This is a simple way to spot any unusual increases in usage, such as a broken under-ground water pipe that can't be seen. Calculate utility usage on a per-unit basis and check against comparable properties to see if you have a usage problem. Make certain that lights and HVAC are not left on in your vacant units (except in colder areas to prevent pipes freezing.) Also, make sure new residents put utilities in their name by their occupancy date.

4. Recently, auditing utility bill s has become a growing business. The auditors work on a percentage basis, getting paid a percentage of what they save you (in the future, plus any refunds you get) by confirming that you have been paying the proper utility rates and have only been billed for actual use.

5. Laundry rooms (lights and water heaters - if laundry rooms are closed at night, heaters can be off); shut off lights in common hallways during the day if they receive enough sunlight; and pool heater, lights and filters (they don't need to be running at night if the pool is closed). In laundry and game rooms, you can use timers that replace the light switch and allow residents to "twist" the lights on for a period of up to one hour.

6. Record every long distance call noting the date, who made the call, who was called, why the call was made, and the phone number. Compare to the phone bill each month.

7. There is no need to use expensive letterhead for in-house memos! Circulate memos around the office instead of making a copy for each person. For in-house memos, simply write your answer on the bottom or on the back of the original memo. It saves paper and typing time.

8. When you call someone, leave a complete message, so that the person you called can call back with an answer even if you are out of the office. Likewise, train yourself and your staff to take complete messages, finding out exactly what the caller wants, so that you can respond to the person if they aren't in when you call back.

9. Too many people wait till the last minute to complete reports or other assignments, using the fax or overnight mail to meet their deadlines. Start planning better to use the less expensive regular mail.

10. By increasing the number of renewals, you save lots of money; Leasing Professionals shouldn't mind getting smaller new lease commissions if they can make it up on renewals.

Training Blurb
Doug Chasick, The CallSource Apartment DoctorTM, continues his quest to ensure you're doing everything you can to reach your marketing goals. This month, Doug shares some proven tips for decreasing operation costs. Read Doug's article: