John E. Damianos, Esq. Damianos Realty 4/30/2015
Management Challenges run a wide span of issues from external to internal concerns:
Governmental Bureaucracies continue to impose increasing registration fees, charges and requirements. Refuse Plant Destination ("Dumping") charges for office trash are increased 4% for the 2015 year, CO (carbon monoxide) detection systems are now required in Nassau and Brookhaven Township in commercial establishments. Other Towns are expected to follow.
Unforeseen expenses such as excessive snow removal and related damage situations erode budget line item allocations and prevent other capital expenditures from occurring in the spring and summer.
Other adjustments for other, more urgent, unexpected contingencies will occur such as roof related drainage, stolen HVAC units and other below - deductible casualties which strain even the most reasonably formulated budgets.
Energy Reduction will continually challenge management which responds in an incremental although steady series of efforts. HVAC System components are typically replaced with those more efficient. Vacant Suites or those requiring modification present opportunities to reduce consumption by conversion from fluorescent to LED bulbs and fixtures. Even revisiting stop and start times of Lighting and HVAC on computer can produce savings.
The Scheduling of Contracts in Best done well in advance of the performance start date as the best contract terms and contractor commitment can be attained early to the advantage and peace of mind for Tenants and Managers. Attempting to even secure a new Sprinkler System during the Summer Season for example, proves testy, as prices tend to be higher when summer demand is at its peak.
Hidden Infrastructure" Problems creep into daily agendas which saps time into such matters as leaks into old demortared brick, asbestos discovered during renovation and silver nitrates in drainage pools from long vacated tenants. Such matters involve Professional
Consultants retained before and after remediation as well as the actual specialized cleanup contractors. Its an added expense just to keep properties "clean".
Lastly one cannot forget the continual battle to keep pace with array of market amenities offered by competitors (or initiated by our own efforts to maintain superiority over competitors).
All of the above must compare with the constraints of a permitted 3 - 4% overrun or at least the pressure of coming close thereto in presenting new budgets to Tenants.