Category Archives: Real Estate Insights

Property Management, Real Estate Insights

How Professional Property Management Increases Property Value

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The manner in which a property is managed can significantly contribute to growing the property’s overall value, from staying on top of preventative maintenance and repairs to effective long-term financial management. A seasoned property management team can significantly increase property value through strategies that include preventive maintenance, efficient record-keeping, thorough tenant screening, and in-depth market knowledge.

The key to increasing the property’s value over time is to work with a skilled property manager who understands the importance of tasks that can boost your property’s value. Crowninshield Management aims to help treat your property like our own. Paying close attention to what our clients need at their commercial property, apartment complex or condominium association will help enhance the value of the real estate. 

Let’s break down some of the essential techniques your property manager can use to increase the value of your property. 

Preventative Maintenance & Repairs

One of the fundamental services that property managers offer to aid in raising property value is not only addressing emergent issues and routine maintenance promptly, but also having a long-term vision for the property’s upkeep. 

Similar to the way that regular dental and physical health screenings can catch an issue before it becomes more serious, the regular inspection of key components of a complex or unit can identify issues before they become a costly or unsightly problem. Additionally, by keeping careful track of when previous repairs and scheduled preventative maintenance occurred, it will be easier to plan when future upgrades may be necessary. 

Optimized Record Keeping 

One of the best tools in a property manager’s toolkit is keeping impeccable records regarding maintenance records, tenant damage, inspections, upgrades and property history. 

A proficient property manager understands the importance of these records, especially when it comes time to sell the property or to turnover a unit. Documents can help demonstrate to a potential buyer the well-maintained condition, new elements (such as plumbing, electrical, roofing, or insulation) and long-term value of the property. 

Resident Support & Management 

Property management isn’t just about fixing issues; it’s also about how well you understand the needs of your renters or unit owners and how you meet those needs. Supporting your renters with timely communication and attention to issues that arise over the years means your community will take pride in their living space. That pride often shows in how they treat and respect common areas such as elevators, outdoor entertaining spaces or any amenities your property offers. By having a solid support and management system in place for your renters, you will be able to showcase the value of your property. 

Additionally, by having an excellent communication system in place, your property may see fewer turnovers annually and may be able to attract more quality tenants, whether that is through a fine-tuned tenant screening process, background checks or reference checks. By attracting long-term renters, your property will experience less wear and tear from renters coming and going, as well as fewer long-term damages. 

Market Knowledge & Compliance Capabilities 

Veteran property managers understand the ebb and flow of the real estate market, as well as the current trends. Being able to see what is on the horizon is key to keeping your property well-maintained and up-to-date with what renters are looking for. 

Experienced managers also understand what it takes to adapt to market conditions and how to follow the compliance guidelines often in place under homeowner associations. That expertise and experience can help maintain the profitability of your property, even in the bleakest of economies. 

If maintaining and increasing the value of your property is a high priority, talk to our team at Crowninshield Management. We can evaluate the components that will help you reach these goals. Contact Crowninshield Management to speak to our team for any inquiries about your property management needs! 

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Financial Management, HOA & Condo Management, Real Estate Insights

How Condo Associations Can Navigate Rising Insurance Premiums

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For condo associations, managing insurance costs has become an increasing challenge. Over the past few years, many associations have seen their premiums rise significantly due to factors beyond their control, such as increased claims, rising construction costs, and changes in the insurance market. Since insurance is a major expense in any association’s budget, finding ways to mitigate these rising costs is crucial for maintaining financial stability and keeping fees manageable for residents.

If your association is facing higher condo association insurance premiums, don’t panic. There are several strategies you can implement to help control costs while ensuring your community remains adequately protected.

Understand Why Condo Association Insurance Premiums Are Increasing

Before making changes, it’s essential to understand why condo association insurance is rising across New England. There are several key factors driving these increases. For starters, more frequent and severe weather events, fires, and liability claims have led insurers to raise premiums across the board. Even if these natural disasters don’t affect your immediate area, insurance companies still find it prudent to raise their rates in response. 

Speaking of raising rates, rising construction and repair costs play a hand in increasing insurance rates. Inflation, combined with the supply chain disruptions over the past few years, have made property repairs more expensive, further increasing the cost of claims.

By staying informed about the factors that increase insurance rates, your association can take a proactive approach to reducing risk and negotiating better rates.

Review and Optimize Your Current Insurance Coverage

A thorough review of your current insurance policy is an essential early step in managing rising premiums. Many condo associations find that they are either over-insured in certain areas or paying for coverage they don’t actually need. You can identify potential savings by carefully examining your policy without sacrificing essential protections.

Start by working with an experienced insurance broker who understands the needs of condo associations. They can help you assess whether your policy aligns with your property’s risks and financial situation. Comparing quotes from multiple insurers can also reveal opportunities for better rates or more favorable terms. Additionally, take a close look at the coverage limits – there may be overlaps between your association’s policy and individual unit owners’ policies, creating unnecessary expenses.

Regularly reviewing and adjusting your insurance coverage ensures that your association is only paying for what it truly needs. This proactive approach can help control costs while maintaining the necessary level of protection for your community.

Improve Risk Management and Property Maintenance

One of the most effective ways to keep premiums down is by reducing the risk of claims. Insurance providers often reward well-maintained properties with lower premiums. Some risk-reducing steps include:

  • Preventative Maintenance – Regularly inspect roofs, plumbing, and electrical systems to catch small issues before they become major problems.
  • Water Damage Prevention – Install leak detection systems, upgrade old plumbing, and encourage residents to report leaks promptly so they can be fixed before they cause expensive damage.
  • Fire Safety Measures – Update your condo’s fire suppression systems, ensure smoke detectors are functional, and maintain clear emergency exits.
  • Security Enhancements – Install security cameras, adequate lighting, and controlled access systems to deter theft and vandalism.

A well-maintained property not only reduces insurance claims but also helps preserve property values for residents. However, this can be a lot for a condo association to handle on its own. That’s why it’s imperative that you work with an experienced condo management company like Crowninshield Management. Our services range from security enhancements and fire alarm installations to property maintenance and emergency repairs. This keeps your condominium community safe and up to date, helping to reduce high insurance premiums.

At Crowninshield Management, we specialize in helping condo associations manage their financial and operational challenges. Our experienced team can assist with budgeting, risk management, and securing the best insurance solutions for your community. Contact us today to learn how we can support your condo association.

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Financial Management, Real Estate Insights

When It’s Budget Time!

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If your community’s fiscal year ends on December 31st, it should come as no surprise that soon your Community Manager and Board Trustees will begin planning for next year’s budget.

The preparation of an association’s budget is a detailed and lengthy process. They have a lot of work ahead of them.  Over the next few months, managers will be tackling the process outlined below:

  1. Analyze each current expenditure line item to determine the correct level of funding. This process must consider fixed expenses such as multi year service contracts; variable expenses such as increased master insurance premiums, increases in utility costs, and so forth.  This can be a time-consuming process which entails communicating with various municipalities, vendors, and contracts to determine if any cost increases are to be expected.
  2. Determine the appropriate Reserve Funding expense. A recent reserve study is an invaluable tool to help your community determine this expense and stay on track with the appropriate level of funding for future capital expense needs.
  3. Determine income level to fund expenses. Association fees, special assessments, late fee income, income from late fees, storage fees, parking fees, and laundry room income are all examples of income for communities.  Your community may use any, some or all these methods to collect income, but which should be “budgeted”?

Association fees and assessments are legally protected and should be included as should any other fees provided for within the governing documents.  Fees such as late fees, fines and laundry room income should not be included as income in a budget as funds generated from these fees may never be realized.

  1. Determine the difference between the budgeted income and budgeted expense. If the total expenses exceed anticipated income, adjustments will need to be made.
  2. Establish a balanced budget. This may be achieved by either raising the income level (this can be done through an increase in assessments, establishment of a special assessment to meet funding needs, or a combination of both to achieve the amount required) or re-assess expenditure line items to determine if some items may be reduced or eliminated from the budget.

As you can see, the process for creating a thorough and detailed budget can be complicated and should simply rely upon a percentage increase across the board.  If your current Management Company is not providing this detail for you, perhaps it’s time for you to give us a call.

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Property Maintenance, Real Estate Insights

Building A Healthy Living Community

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At Crowninshield Management Corp. we are fortunate to have valued relationships with hundreds of trustees. Each and every day our team listens and responds to the needs of our clients throughout New England. Although many of our residential complexes differ in size and needs, all properties share a common goal to create a healthy community. We reached out to a few trustees to share how they strive to create a vibrant community.


Tips from the Trustees at Crowninshield

William Neff, a trustee at Bishops Forest II in Waltham, Massachusetts with 81 units feels lucky that the residents in his community “are all about the place.” He points to two key ingredients to building a healthy community, a well-functioning board and a strong property management company. “Our board is small. We have five members, but we all care about our neighbors and the community,” says Neff who notes that everyone is both motivated and intelligent.” He adds that the property manager fits in with the community and has a relationship with the community as a whole.

Needing a Dedicated Trustee & Property Manager

Terry Wilkins, a trustee at Village Green West Condominium in North Andover, agrees that you need dedicated trustees and a competent property manager, but adds that you also need community interest as well. She also notes people typically don’t care about things as long as they are going along fine. “When you have a crisis like ice dams or needing a new roof, people get interested,” says Wilkins who notes that you can’t always give people what they want. “Balancing keeping people happy and being responsible to the trust agreement is what it is all about,” she says.

“It is our pleasure to work with active boards to enhance their communities. The Crowninshield team is here as a resource to brainstorm, troubleshoot and provide guidance. We have over four decades of experience in all aspects of property management,” says Deborah Collier-Comins, Crowninshield Management Corp. President.

Communication is Key to a Healthy Community

Good communication is also a key ingredient to building a healthy community. Ongoing, clear communication helps people feel more engaged and invested. There are so many tools available today online to help get your message. It is important that everyone feels part of the process. As Margaret Mead said, “Never doubt that a small group of thoughtful, committed, citizens can change the world. Indeed, it is the only thing that ever has.”

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Property Maintenance, Real Estate Insights

6 Tips For Energy Efficiency This Spring

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Congratulations! If you live in New England, you’ve probably just endured the most wicked winter in history. Now, it’s time to rejoice in the return of spring, and all the green it brings with the change of season.

While we’re on the subject of green, spring is the ideal time to think about saving money and the planet. As the weather improves, you can make some changes to the home to be more green and more energy efficient. Here are six tips to reduce costs and save energy in your home or apartment. The spring season is the best time to make a change to your lifestyle!

Spring Energy Efficiency

Switch to LED Lighting

Although the initial cost of using LED lighting is typically higher than conventional lighting. in the long run you save money and energy. LED lights use 90% less energy than conventional lighting.  They offer a great low maintenance solution for indoor and outdoor lighting.

Explore Digital Solutions

With today’s advanced technologically, you can virtually control everything with a click on your smart phone or tablet. Take time to learn about the variety of systems you can control remotely. Something as simple as installing a programmable thermostat to reduce utility bills and manage heating and cooling systems efficiently is a great start.

Save Energy And Money With These Tips

Jettison Your Old Appliances

Did you know that not buying new appliances can actually cost you more than investing in them? When purchasing new appliances, be sure to invest in the most energy efficient appliances. Take time to learn about smart appliances that can switch usage to non-peak hours.

Check Your Windows

Make sure to use snug-fitting shades on drafty windows. Now is a great time to repair your storm windows and get them ready for next winter. If you need to replace windows, check out high performance windows that are more energy efficient. Although you may not see the cost benefits for years, it’s worth the wait! Living an energy efficient lifestyle directly depends on the windows in the home.

Green Lifestyle That Saves Energy

Conserve on Your Light Usage

Are you wasting energy by not monitoring your lighting usage? Take advantage of the many ways to save energy  like sensors, dimmers, or timers  to reduce your lighting usage.

Change Filters

Be sure to routinely change HVAC filters monthly during peak cooling or heating seasons. New filters are typically inexpensive. Dirty filters cost more to use, exhaust the equipment and result in lower indoor air quality.

Whether you live in a home or an apartment, these are changes you can make to be more conservative going into the spring season. If you live in an apartment, consider making these eco-friendly suggestions to your landlord, apartment, or building management. They will most likely abide by your wishes as there’s no reason not to make energy efficient improvements that are cost affordable!

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Real Estate Insights

Officers Duties and Responsibilities

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Community association officers typically serve at the pleasure of the board in carrying out specific duties. Here is a checklist of the major responsibilities of the officers:

President:

  • Chief executive officer and leader of the association
  • Presides at all meetings of the board and membership
  • Executes legal documents on behalf of the association
  • Sets meeting agendas and controls all meetings
  • Represents the board before the residents
  • May have nominating, if not appointment, responsibility for all committees

Vice President:

  • Performs all of the duties of the president in his or her absence
  • Typically shares some of the burden of the president regarding appearances, liaison, public hearings, etc.
  • Usually assigned liaison responsibility to specific staff or contractors and to specific committees

Secretary:

  • Prepares and distributes board and membership meeting agendas, minutes and materials referred to in minutes
  • Maintains minutes book on all meetings
  • Maintains book of resolutions
  • Maintains all official records, including official correspondence, contracts, membership roster, etc.
  • Receives, verifies and maintains all proxies
  • Attests, by signature, to the legitimacy of certain documents

Treasurer:

  • Work with appropriate staff, contractors and committees to develop and submit annual operating budget for approval
  • Maintains adequate roster of all association financial transactions
  • Maintains roster of delinquent accounts and recommends action regarding collections
  • Receipt and disbursement of funds, as authorized
  • Prepares periodic financial reports
  • Arranges, subject to board approval, an independent audit of financial affairs
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Property Management, Real Estate Insights

Accredited Management Organization of the Year!

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Crowninshield Management Corporation has been named Accredited Management Organization of the Year by Boston Metropolitan Chapter 4 of the Institute of Real Estate Management.

The award was presented at Boston Metropolitan Chapter 4 of the Institute of Real Estate Management’s Awards Night held at the John F. Kennedy Library in Boston.  “We chose Crowninshield Management Corporation because they have a long commitment to excellence in the real estate management industry.

The executives of the company have the certified property management designation, the highest designation provided by the Institute of Real Estate Management,” said David Barrett, Boston Metropolitan Chapter 4 of the Institute of Real Estate Management President 2014. “It is truly an honor to be recognized by the Institute of Real Estate Management. Our team works tirelessly year-round to deliver excellence and are proud to be recognized,” said Nick Ruccolo CPM, Vice President Crowninshield Management Corporation who accepted the award.

crowinshield

left to right: Dave Barrett, CPM and former President of Boston Metropolitan Chapter 4 and Nick Ruccolo CPM, Vice President Crowninshield Management Corporation
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Financial Management, Legal & Compliance, Real Estate Insights

Master Policy/Homeowner Insurance Hurdles

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When condominium sites renew their current Association Master Policy with some adjustments, or when they obtain a new Master Insurance Policy, it is critical that they notify all unit owners of the changes.
A letter should be issued to assist with a contact for certificates of insurance and how to coordinate individual unit owner policies with the Master Policy.
The Master Policy typically covers all Common and Limited Common elements pursuant to the Condominium Bylaws, although there exists exclusions in the Master Policy coverage that should be considered when purchasing a homeowners insurance policy.
Unit Owner’s Policy
It is the Unit Owner’s responsibility to insure their own contents and personal liability. Additionally, homeowners are responsible for the Master Policy deductible. It is also strongly recommended that all Unit Owners purchase an “HO-6 Policy”. The Master Policy will have a deductible; therefore, unit owners should discuss the following with their insurance agent for the “dwelling” of their HO-6.

  • Please have your agent review the insurance section of the Bylaws of the Condominium Documents.
  • In case there is a loss which does not allow you to occupy your unit, you should consider obtaining “Loss of Use” insurance.
  • Should there be a claim that is not fully funded by the Master Policy’s insurance, you should consider obtaining “Loss Assessment” insurance. Please discuss this with your agent.
  • It is also recommended that Unit Owners speak to their Insurance Agent to include the HO-1732 endorsement, which broadens the perils insured under coverage A-Dwelling from “named perils” to “special form”.
  • It is recommended that unit owners making improvements and upgrades to their units (e.g. kitchen cabinets, expensive flooring, wall covering, fixtures, etc.) retain documentation of the improvements. It is important that documentation be kept so unit owners may recover replacement value.

Investor Units
Personal liability coverage and the deductible is the responsibility of each unit owner. This would include loss of rental income. We suggest that investors require their tenants to purchase an HO-4 tenant policy.
HO-6 Unit Owners Policy Exclusions and Limitations
There are some important policy exclusions or limitations that should be reviewed when unit owners are analyzing their own personal insurance requirements (i.e. Jewelry, Fine Arts, Business Property, etc.). In many instances, these exclusions or limitations can be modified or changed. Please note coverage and endorsements must be arranged through a unit owner’s personal agent!
The importance of insurance within a condominium cannot be stressed enough. It is important to be properly insured against all types of losses. The association should meet with an experienced commercial agent to discuss all types of liability and losses which may occur on their property. We recommend each owner sit down and speak with their own agent with a copy of the Master Policy insurance certificate to insure they are properly covered in the event of liability or a loss.

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