Resident: I also want to remark that I think Robs idea is brilliant and I would be most interested in purchasing my own room. If the choice is between paying about $ 4,000.00 for an immediate assessment plus maintenance increases for the next 5 years, versus paying $ 15,000 for a piece of real estate I own this really seems to be a no brainer! Thanks Rob for all the work you put into this.
Rob: Please note that your maintenance will also go up under the Plan. The plan helps bring in some, a bit of maintenance every year, from the rooms. It is certainly a benefit but by no means will stop maintenance increases. It does push some of the burder for some operating expenses onto the people occupying the new storage rooms. However, that is understandable since they own more of the building. The extra money is estimated at $91,000 a year more in extra income. That is a small fraction of overall maintenance. However, it will help fill the expense to income gap that Joe outlined and lower maintenance increases every year.
Posted by Rob
I think it's reasonable and responsible to increase maintenance in line with increases in expenses. This should be expected. Real estate taxes have been increasing every year since the last maintenance increase -- yet the Board has not increased maintenance to keep pace. This, in part, has contributed to the shortfall we are now facing. It is also reasonable and responsible to plan for capital expenses -- which also should be incorporated into maintenance expenses.
While unexpected capital and operating expenses will always occur -- more frequent increases in maintenance would have helped us to avoid the large assessment we are now facing.
It's not too late, however -- in lieu of this proposal, the Board should consider raising maintenance sooner rather than later and begin to spread these costs over a longer period of time. Shareholders should be presented with -- and the Board should consider -- an alternative to a large one-time assessment, since it is possible to spread this assessment out over time to soften the blow.
We also need to look at cost cutting proposals where possible. Tom Paolicelli
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Resident: I also want to remark that I think Robs idea is brilliant and I would be most interested in purchasing my own room. If the choice is between paying about
$ 4,000.00 for an immediate assessment plus maintenance increases for the next 5 years, versus paying $ 15,000 for a piece of real estate I own this really seems to be a no brainer! Thanks Rob for all the work you put into this.
Rob: Please note that your maintenance will also go up under the Plan. The plan helps bring in some, a bit of maintenance every year, from the rooms. It is certainly a benefit but by no means will stop maintenance increases. It does push some of the burder for some operating expenses onto the people occupying the new storage rooms. However, that is understandable since they own more of the building. The extra money is estimated at $91,000 a year more in extra income. That is a small fraction of overall maintenance. However, it will help fill the expense to income gap that Joe outlined and lower maintenance increases every year.
Posted by Rob
I think it's reasonable and responsible to increase maintenance in line with increases in expenses. This should be expected. Real estate taxes have been increasing every year since the last maintenance increase -- yet the Board has not increased maintenance to keep pace. This, in part, has contributed to the shortfall we are now facing. It is also reasonable and responsible to plan for capital expenses -- which also should be incorporated into maintenance expenses.
While unexpected capital and operating expenses will always occur -- more frequent increases in maintenance would have helped us to avoid the large assessment we are now facing.
It's not too late, however -- in lieu of this proposal, the Board should consider raising maintenance sooner rather than later and begin to spread these costs over a longer period of time. Shareholders should be presented with -- and the Board should consider -- an alternative to a large one-time assessment, since it is possible to spread this assessment out over time to soften the blow.
We also need to look at cost cutting proposals where possible.
Tom Paolicelli
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