Money, as they say, doesn't grow on trees. Even if it did, every Fall, the money trees would lose their bills and the Board would still be scratching its head on where to find more to make it through the year. And then there's that darned inflation eating away at the roots.  

Since money is so hard to grow, let's take a look at ways to tighten the belt by finding large recurring costs and finding ways to trim them.  

Utilities: Compare water and sewer usage for the same periods over the last two years. Are there any substantial unexplained variances that could be attributable to undetected leaks? Leaks can go undetected for years and rack up thousands of dollars in extra bills. Another way to reduce water consumption is to convert turf areas to drought resistant ground cover.  

Insurance: Consider raising your deductible. Increasing to $1000 or $2500 often translates to a dollar for dollar premium savings.  

Pools: Consider adjusting temperature down several degrees to decrease the heating bill. Solar water heating alternatives are now available that can substantially reduce heating costs and pay for itself within a few years. Replace your cartridge type pool filter with a low maintenance sand filter which usually pays for itself within 1-2 years.  

Lighting: Convert from incandescent to high-efficiency exterior lighting like mercury vapor and compact fluorescent. Besides brighter light and increased security, the cost of conversion will often pay for itself within a year and then you'll enjoy up to a 70% energy savings.  

Preventive Maintenance: A huge money saver. Annual inspections of the buildings and systems will identify small repairs before they get out of hand. Also consider:  

Carpet Cleaning: Professionally clean clubhouse and common corridor carpet at least once per year or more to prolong life.

Elevators: Do an annual inspection of the shaft, pit and equipment room with the elevator maintenance contractor to ensure that contracted maintenance is being performed.

Fences - Cedar & Redwood: Leave wood unpainted to age naturally and eliminate repaint cost.

Paint: Make sure to specify the highest quality paint since the increased cost over "painter grade" is small compared to its performance and durability.

Roofs: Hire a roofing contractor for an annual inspection to repair missing shingles, breaks in the membrane and inadequate flashing before the rainy season.  

Sidewalks: Grind down tripping hazards where possible instead of replacing concrete.

Corrective Tree Pruning: Perform corrective pruning every 3-5 years (depending on the species of tree) to eliminate deadwood, enhance look, treat for diseases/pests and to extend the lives of these valuable assets. Install a "no turf circle" around each tree to protect against mower and weed wacker damage that will kill the tree.  

Siding Replacement: Consider a cement based siding like Hardiplank which is fireproof, dryrot resistant and has twice the useful life as plywood and hardboard sidings. Vinyl siding has improved dramatically in quality, color, selection and durability in recent years. Vinyl can often be overlaid on existing siding and eliminates the need for cyclical painting. Keep the color neutral as it lasts a long time.  

Postage & Mailing: Meeting notices and information can often be distributed to residents by way of flyer boxes like the ones used by real estate agents. Save stamps, envelopes and time.  

Don't overlook the obvious. Phone your landscape contractor, pool maintenance, roofing contractor etc and inquire about ways to trim costs. There are new technologies coming out all the time.  

In the final analysis, belt tightening and putting your association on a fiscal diet is really a matter of keeping an eye out for opportunities. Don't be a afraid to question how things have been done in the past. They may be right, but then again, they may be wrong. Make sure you understand the difference.

For more information on this subject, see www.Regenesis.net.

Published: November 24, 1999

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Richard Thompson owns Regenesis, a management consulting company that specializes in condominium and homeowner associations. He is a nationally recognized expert on HOA management issues. Regenesis publishes The Regenesis Report, a monthly newsletter for HOA boards, developers and managers. To subscribe, go to Regenesis.net. He can be contacted by email at .