If you do not have a solid plan of action to help reduce inefficiencies and eliminate profit leaks in your commercial property, you could be losing money. The good news is getting on track is not as complicated as you may think. Here are three ways to help prevent unnecessary profit loss:
1. Gain Control of Energy Costs
High energy costs (oil in particular) can take a huge portion out of a real estate property’s budget – not to mention profits. Unfortunately, there are numerous corrupt oil companies out there who prey on commercial property owners by overcharging fees.
Building superintendents and managing agents can easily avoid being taken advantage of by carefully reviewing their bills and records regularly.
One way to reduce energy costs is to start reading your oil Petrometer before and after every delivery. This will help you to see the amount of oil that is actually being delivered. Companies who monitor their bills and manage suppliers tend to come out ahead. At Metropolitan Properties, our in-house CPAs carefully scrutinize every aspect of your accounts to ensure your money isn’t being wasted.
2. Review ‘All’ Commercial Leases
Make sure you review all commercial leases with a close eye. This can help identify cost savings opportunities and potential ways to generate new income. Perfect example, our property management company in NY began managing a building in New York City that’s being leased to a restaurateur. When we first met with the client, the building was in poor financial condition. To say the least, they weren’t satisfied with how the previous agent handled business.
Metropolitan’s experienced managing agent reviewed the Owner’s lease agreement with the restaurant. We discovered the lease was only for the use of the 2 floors of the restaurant and not the rooftop area. However, the building Owner was still benefiting financially from the rooftop terrace.
When we came on board, our team aggressively identified ways to save money and to generate additional income. As a result, we were able to negotiate an extra $25k annually from the restaurant for the use of the building’s rooftop, with assistance from the building’s law firm.
3. Limit Building Supplies and Equipment Spending For Superintendents
Overspending is a common practice among many building Superintendents. Light bulbs, paper products, soap, trash bags and other products can easily add up. As leading New York property managers, we have an extensive vendor list and special industry pricing information to assure that are being provided with the lowest prices possible for your property.
Another way to save money is to implement a spending limit for building Superintendents. Many Superintendents are often granted permission to spend up to $1000 without approval from the Board, but this should be strictly enforced and monitored by your property manager.
As you can see, we go beyond analyzing building supplies. We help building owners save money on energy costs and even on insurance. Hiring an experience NY Property Management Company can lead to substantial savings for property owners and fewer headaches.
If you’re a New York Commercial Property Owner in need of a property management company or searching for ways to save more money call: (718) 626-4400 or contact us today for a quote.