January 26, 2006 • ISSUE 52 / VOLUME 1

Hawaii First provides results at lower cost

Helping associations trim fees

Hawaii First is the third largest management company in the state and provides services to associations on Kauai, Hoahu, Maui and the Big Island.

By Richard Emery
President – Hawaii First

Two important and often overlooked parts of association management is the daily cost of operations and the funding of the reserve fund. Both affect every homeowner and the monthly maintenance fees they have to pay.

Hawaii First assists associations by making sure that the budget and reserve study are prepared to meet the highest standards of accountability.

No stone is left unturned to ensure that every homeowner is getting the greatest value for the monthly fees they pay.

It begins with the reserve study. Hawaii condominium law requires that all condominium associations prepare a reserve study each year as a part of their annual budgeting process.

Actually many other types of associations also prepare a reserve study. After all, it simply makes good sense for an association to save money for the future replacement of items. A good study avoids special assessments and high maintenance fees.

Hawaii First is the only management company in Hawaii that employs a full-time, professionally certified reserve study expert — a Reserve Specialist.

Many associations retain an independent Reserve Specialist for thousands of dollars to prepare the reserve study. But at Hawaii First, the preparation of the reserve study is included in the management fee at no additional cost to the client.

Hawaii First has helped new clients reduce the monthly maintenance fee or eliminate a special assessment by providing professional solutions to pay for deferred maintenance or fund needed capital projects.

National standards and Hawaii’s condominium law provide strict standards for the preparation and calculation of the reserve study.

Of course, the fact that an association may have a reserve study does not guarantee that their study incorporates all the lawful options available to keep the association affordable.

Only Hawaii First can prepare a professional certified reserve study that meets the highest national standards, fully complies with Hawaii condominium law and defines all of the options available to keep monthly costs low.

In fact, you would be surprised at the options available. Hawaii First routinely provided these alternatives to its customers at no charge.

The other important part of an association’s financial planning is the operating budget or the daily expenses.

Although named a maintenance fee, the fee includes many items other than maintenance. It also includes expenses such as insurance, common area electricity, a manager’s wages and benefits, pool supplies or maybe a landscape contract. The monthly fee, it turns out, is really more of an operating fee than a maintenance fee.

Budgets should not be prepared by simply using this year’s monthly average, maybe adjusting it a little, and declaring the number as next year’s budget.

Hawaii First carefully analyzes each budget item, then compares the results with other similar projects.

Hawaii First managers look at and inside each expense. Whether it’s hours of operation of the common area lighting, the insurance deductible amounts or the refuse schedule, every expense must be analyzed and regularly compared with other options.

In some cases, bids should be sought to verify that the association is receiving the best value for the contract price. Hawaii First looks at every budget as an opportunity to improve the quality of an association’s operation.

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Hawaii First’s contract already provides the lowest reimbursable management costs in Hawaii, resulting in an immediate saving to every client — often more than 50 percent. Our advanced technology eliminates costs often charged by other management companies.

Hawaii First is the third largest management company in the state. It provides service to associations on all the islands including Kauai, Oahu, Maui and the Big Island.

Hawaii First can have a tremendous impact on the success of your association because it provides better results at a lower cost.

Contact Hawaii First Inc. at 808-531-5566 or online at www.hawaiifirst.com. Ask for a free brochure to learn more about our extensive services.

Take a tour of our Web site or request a free quotation. That way, you can compare the difference and evaluate the potential saving yourself.