Every year, condominiums and co-ops in New Jersey pay millions of dollars in utility expenses, including electric, water/sewer, gas, and steam. Are you certain your board or homeowners association (HOA) is paying the correct amount? What if it isn't? Without an expert audit, you may never know if your complex is due refunds, savings, and credits from overcharges that appear in a surprisingly large percentage of utility bills.
A whole business sector has grown to supplement your management company's efforts and delve further into the highly specialized area of utility cost recovery to obtain funds on your behalf. The following is an objective look at whether this service is right for your development, and a primer to help you make the best selection of an auditor.
What Do I Have to Lose?
That depends upon certain factors:
Does the auditor work on a contingency fee basis? Some companies charge a fee for their service, regardless of whether they effect savings. The benefit of this arrangement is you know what the cost will be. The downside is that you pay for the service whether your building saves money or not, and there is no financial incentive for the provider to dig as deep as possible to effect savings. The auditor gets paid the same amount of money whether they save you significant dollars or no dollars at all.
Many auditors are paid only when they recover refunds, savings, and credits. In this case there is absolutely nothing to lose, with the potential—and their incentive—to secure significant savings.