New ideas for reducing expenses.

When it comes to saving money, it takes more than diligence and persistence to make your efforts pay off. You need real know-how and a few good ideas. Here are some items to consider:

To build a tight financial system, you must first have a firm handle on your cash-flow. Every month, run a report of your expense compared with your budget. This will help catch costly mistakes and overspending. In many cases, it will show you where you may not be spending enough, or where you are spending money unwisely.

Wise spending practices will not only save money, they may help earn it. At one building, a careful look at the expenses versus budget revealed enough extra cash for a modest improvement. Considering that the building is occupied by young families who need more space, but cannot afford larger apartments, the owner chose to install steel storage units in the basement. Now filled to capacity, the units are generating $50 per tenant per month and providing a valuable service in an area that had been going to waste.

Collecting arrears has become extremely expensive and time-consuming for many owners. Attorneys generally charge their regular hourly fees to send out letters and appear in court -and the bills for these services can go sky high.

One alternative to using an attorney is to have your managing agent build your case. A few managers will collect evidence and testify in housing court for a fraction of what a law firm will charge. While managing agents should not pretend to be attorneys, they are often very familiar with their buildings, and that helps in and out of court. Many times, all it takes is a talk with a tenant to clear up any misunderstanding, or to work out payment arrangements -- without going to court.

Non-primary residency presents another financial and legal challenge -to gather proof, catch costly mistakes and overspending. In many. cases, it will show you where you may not be spending enough, or where you are spending money unwisely.

Wise spending practices will not only save money, they may help earn it. At one building, a careful look at the expenses versus budget revealed enough extra cash for a modest improvement. Considering that the building is occupied by young families who need more space, but cannot afford larger apartments, the owner chose to install steel storage units in the basement. Now filled to capacity, the units are generating $50 per tenant per month and providing a valuable service in an area that had been going to waste.