For many community associations, utility costs take up a large portion of the annual budget. From lighting and irrigation to heating communal spaces, these expenses can add up quickly. If your Board does not manage your common area utility costs effectively, they can spiral out of control.
The good news?
With the smart strategies and proactive planning tips provided in this article, your Board will be able to keep utility expenses under control while maintaining the quality and comfort of your community’s shared spaces.
Importance of Utility Cost Management to Community Associations
Common areas and amenities are one of the major draws of a community association. However, keeping these spaces running and maintained is an ongoing expense. Utility expenses for common areas are a major culprit.
High electricity, water, and gas bills can strain a community association’s budget and limit the funds available for improvements, reserves, or other amenities.
Therefore, it is essential to focus on cost-saving measures. Some of these benefits of these strategies include the following.
- Lower operating expenses.
- Reduction of the community’s environmental impact.
- Keeping assessments more predictable and manageable.
- Freeing up funds for long-term projects and upgrades.
Common Community Association Utility Expenses
When your Board understands the most common utility expenses for community associations, you will be better able to manage those costs. You are likely spending money on some or all of the following.
- Electricity for lighting, elevators, and clubhouse amenities.
- Water for landscaping irrigation, pools, and foundations.
- Natural gas or propane for heating pools and community facilities.
- Waste management and recycling services.
- HVAC energy use in clubhouses, gyms, or community offices.
Practical Ways to Reduce Common Area Utility Costs
Now that you understand the importance of utility cost management and the most common utility expenses, it is time to explore practical ways to reduce your common area utility costs.
- Upgrade to energy-efficient lighting:
Making the switch to LED lighting in common areas can significantly reduce your energy costs. LED lighting also requires less maintenance, which reduces those costs as well.
- Install Smart irrigation systems:
Watering landscapes is often one of the largest utility expenses for a community association, especially depending on your location. Smart irrigation systems will adjust the watering schedule based on weather and soil conditions, optimize your water usage, and reduce costs.
- Maintain HVAC systems:
Community clubhouses, gyms, or offices often have their own HVAC systems. Keeping these systems in good working order helps them operate more efficiently and prevents costly energy spikes.
- Partner with a professional community association management company:
Reducing your common areas’ utility expenses may seem overwhelming, but it doesn’t have to be. By partnering with an expert community association management company like ACRI Community Realty, you can reduce unnecessary expenses and save money.
Contact ACRI Community Realty today for help identifying savings opportunities and implementing long-term cost-control strategies.
