December 2014
Developers build amenities into a condominium building to entice purchasers. The Amenity Trap is when a condo corporation chooses to maintain underutilized amenities and space rather than eliminate the expense or repurpose space to benefit condo residents.
Monthly maintenance fees in a condominium support both the reserve fund and general maintenance. While most of these expenses are uncontrollable, it is possible to reduce operational and reserve fund expenditures by reviewing the usage and cost of amenities. These are major expenditures presenting an opportunity for changes to save money or improve the lifestyle for condo residents.
The most common and probably most-used amenities are the exercise room, rooftop terrace or outdoor patio, and party room. All other amenities may warrant review by a condominium corporation desiring to reduce their costs or providing more practical amenities for residents.
Swimming Pool. Most people do not swim and it may not be a stretch to assume a swimming pool remains unused more than 75% of the time. Furthermore, it is probably rare for more than one or two people to use the pool at the same time during the active 25% of the day. Having a private pool for what may be only a couple of dozen individuals is quite a luxury. Heating the water and air, chemicals and special equipment are just some of the costs. Ongoing maintenance, equipment repair and replacement can be high. Repair of walls, metal doors and windows damaged by high levels of humidity add to these costs. Elimination of the swimming pool is likely to result in savings of tens of thousands of dollars each and every year.
Games/Billiards Room. Are these amenities used by owners, teens or children? How often do adults play billiards, Ping-Pong, foosball, air hockey, or pinball? Media Room. This space is less popular than in the past. More residents prefer to watch the big screen TV in their suite rather than make their way to a central area. This has happened because the price of a big screen TV is now affordable at a personal level. If the Media Room is unused most of the time, perhaps the space can be put to better use.
Bowling, basketball, batting cage, virtual golf simulator and squash facilities. Condos can be a graveyard of sports amenities that are unused most of the time. If these facilities are unused, stop replacing expensive equipment. Find a better use for the space and funds.
Library. A private library looks impressive but is it being used? Is it just a space to store unwanted books? If furniture, lighting, window coverings or wall coverings require repair or replacement, are these costs warranted? Perhaps the room is more useful as a coat closet, card room or game room.
24 Hour Concierge/Security. Is it really necessary to have security all night? Perhaps it makes sense to eliminate the night shift between 11 pm and 7 am. This means that guests are not allowed to enter a building or parking area without the physical presence of an owner during these hours but this may not be an inconvenience. As for security, many buildings have cameras covering high risk areas of the building which means that problems can be identified and addressed when the morning shift commences.
Condo owners should periodically evaluate use of their amenities to ensure they are justified based on use. This is an opportunity for condo management to consider how its money is best spent. Amenities that are not of interest to residents can be eliminated to save money or changed to better serve the building population.
