Managing a residential complex can be an expensive business. From staff salaries to ensuring timely repairs and maintenance, the operative costs can stack up to a fair amount. There can be hidden costs as well, such as utility bills and trash disposal charges. Prudent financial management dictates that we minimise these expenses while trying to increase our sources of income. However, this is easier said than done. The larger the society, the more the expenses. The complexity of managing a society further makes it difficult to slash costs.
Today, no management committee can tackle the financial management of a residential complex without comprehensive digitalisation. ApnaComplex offers end-to-end digital support for apartment management with an integrated ERP system to manage multiple tasks. It offers many features to improve administration, cut costs, and ensure budget optimisation.
What are the typical expenses in apartment management?
The costs incurred in managing an apartment can broadly be divided in the following categories:
- Staff salaries
- Repair and maintenance
- Taxes & insurance
- New construction/furnishing
The expenses can increase with the size of the property and the extent of services. For instance, the management of large complexes will involve higher expenses on security, cleaning, and maintenance. The extent of services can also increase maintenance costs. Additional services, such as basic home maintenance can involve putting additional carpenters, electricians, and plumbers on the payroll. Similarly, facilities like swimming pools or gyms can increase the cost of maintenance.
How can ApnaComplex help in reducing costs?
As an integrated digital platform for apartment management, ApnaComplex offers multiple features that can help society treasurers to make data-driven decisions on reducing expenses. The platform offers end-to-end support that can help in cutting down staffing costs while providing valuable data on expenses and inventory. The aim here is to empower treasurers with relevant information on surplus expenses.
Inventory tracking: One of the reasons for unplanned expenses, especially in large societies, is untracked inventory. From diesel to light bulbs and even pens, inventory management requires meticulous recording and tracking of the inventory to identify any instances of overspending. ApnaComplex offers an Inventory Tracker that helps in keeping track of every inventory in the complex. It can track purchases, consumption patterns, and stock levels of each item. This can serve multiple purposes. We can study how and where different items are used, their lifespan, and when stocks dip low. This data can help us identify high consumption patterns, unaccounted inventory, and if there is an unexplained spike in expenditure.
Facility management: Part of reducing costs is to extend the lifespan of existing facilities like lifts, fire equipment, electric fittings, and borewells. The Asset Tracker feature in ApnaComplex maintains service history and AMC details to ensure that the management can carry out timely services and repairs. This helps in ensuring smooth and extended lifespan for various facilities, thus cutting down on repurchasing costs.
Overhead cost: The digital solutions by ApnaComplex ensure that while productivity and outcome remains the same, the effort and cost to sustain these are significantly reduced. By automating some of the regular functions, the platform can help in reducing overhead costs, including staffing expenses. For instance, ApnaComplex Guard Patrol Tracking is a foolproof system that digitally traces a guard’s movement, removing the necessity of in-person supervision. Similarly, as an app also frees apartment communication from legacy systems like intercoms.
Budget optimisation: ApnaComplex has extensive budgeting tools that can be instrumental in optimising expenses. One of the most powerful features in this regard is the Budget Variance Report. It analyses the difference between the budget and the actual performance. Other areas with heavy expenditure can be pinned down through Expense Tracking. Similarly, utility expenses can be tracked with Metered Utility Billing. These features can help in identifying areas that consistently exceed budgetary outlays. The management can use the data to put a cap on expenditure.
As a digital platform, ApnaComplex offers a comprehensive database that collates all information in one place. The financial data collated over time gives us an insight into the financial behaviour of the society. It can be leveraged to improve forecasts, identify areas of improvement, and plan appropriate policies.