How to reduce co-ownership charges?
Despite a 4.9% decrease in 2014 and a slight increase of 0.7% in 2015, co-ownership charges saw a fairly dramatic rise in 2016 with an increase of 3.9% (according to the Association des Responsables de Copropriété). Between tenant comfort requirements and rising electricity costs, the present and the future are likely to follow the 2016 trend.
Despite a 4.9% decrease in 2014 and a slight increase of 0.7% in 2015, co-ownership charges saw a fairly dramatic rise in 2016 with an increase of 3.9% (according to the Association des Responsables de Copropriété). Between tenant comfort requirements and rising electricity costs, the present and the future are likely to follow the 2016 trend.
However, there are ways to reduce your co-ownership charges, and this is what we will try to reveal in this article.
What increases co-ownership charges?
Before looking for ways to reduce your charges, you need to understand what your charges consist of and which items are the most costly. According to the ARC and UNARC, the three types of charges that top the list of most costly are:
- Heating: it costs at least £13.9 per m² and represents 28% of total charges.
- Staff (concierge): it costs £8.6 per m².
- Maintenance: it costs £7.1 per m².
The best solution for reducing your co-ownership charges is therefore to tackle these three areas.
How to reduce heating charges?
You can always have a word with your energy-hungry tenants to convince them to reduce their waste, but the best solutions would first be to renegotiate your heating contracts (especially if you are heated by gas). Before your contract expires, do not hesitate to compare prices between different suppliers to find a more affordable rate. Next, consider adjusting the heating temperature, as a decrease of just 1 to 3°C is enough to save 7% or more on consumption. Finally, do not neglect to check your heating system from time to time, as a well-maintained boiler can also save 10% on fuel.
How to reduce staff charges?
The standard is to have a concierge for 80 to 100 units; below 50 units, a concierge position is not necessary. If you have a concierge post that is more than necessary, you can take advantage of a vacancy to change things. Do not forget to make modifications to the co-ownership internal regulations if necessary.
Using a service provider is also a viable solution for making savings.
Review and renegotiate the various contracts
It is recommended that you review and scrutinise the contracts you manage to determine if there are any money leaks.
Maintenance contract: Ask yourself whether it is useful to have a maintenance contract or whether less costly one-off interventions could very well replace it.
Contract with the Managing Agent: Scrutinise your contract and identify any particular services that are not compliant (and costly) with the flat fee set by the March 2010 Novelli decree. Once again, do not hesitate to compare prices between different managing agents and change contracts if needed.
