Hard Times Seminar Review
Saturday, October 29th 2011
Held at the offices of TURN (Tenant Union Representative Network)
Susan A. Murray, a partner with the Philadelphia law Freedman & Lorry and former treasurer of Friends Housing Cooperative, discussed how she led her co-op out of the brink of foreclosure to financial stability.
Susan delinated the financial challenges faced when she instituted during her tenure as treasurer of the Freinds Housing Cooperative.
A) What can we cut that does not greatly impact quality of life?
Conservation - make cooperators aware of the financial benefits of water usage and heat conservation.
Insulation - find ways to conserve water (i.e. washer-less faucets and water efficient showerheads.)
Energy efficient lighting
Seek out volunteers to do work for cooperatives. Instead of hiring a landscaping service, encourage members to take charge of gardening needs. (Yet another way to bring cooperators together)
Form energy conversation committee.
B) How can we save money for the bills I pay?
Review contracts with vendors.
Should a request for proposals (RFPs) be sent out?
Should we continue to use the same contractors? Maybe a change of contractors will provide better rates.
Work with insurance broker on how to lower insurance costs.
C) How can we increase revenue?
Stay on top of delinquent account collection.
Stay on top of renovation and marketing of vacant units. An important part of your marketing strategy is to become familiar with the local competition.
Talk to your property manager or accountant for ideas.
In addition to cuts in expenses, sometimes you have to make the tough decision of increasing carrying charges. (Make sure members understand why increases are necessary.)
Find other ways of increasing revenue. For example: commercial tenants/operation of laundry room/provide services (renting reserve parking spaces. renting oout common room for events.
D) Other Tips
Don't run and hide for creditors-work with them. Pay for services on payment plan.