The presentation showcases how to improve the operations of apartment complex/gated communities*

1. How to improve the running of your apartment complex/gated communities*
Opex and CAPEX Model
For
Gated Communities and apartment complexes
By
Marutish Varanasi
(The author is a business and market strategy consultant. He is a CEO Advisor, coach and mentor
to small and medium enterprises across Energy and IT space. He is based out of Hyderabad - India)
*The author is sharing this presentation as a part of his corporate social responsibility

2. How should Gated communities and apartment complexes drive down their
OPEX costs down
The maintenance charges at Gated communities and apartment complexes should be a sum of
the following = A + B +C
A B C
C1 C2
• A = Club house expenses including all sporting facilities and its maintenance. The club house for the association should not be run as a
profit centre but it should be run on a no loss no profit basis. There can be flat club house charges per residents but with the approval of
the association and there can be specific user charges for using specific utilities that have a high maintenance.
• B = Maintenance charges for the apartment/villas @ at a mutually agreed basis – preferably per sq.ft basis.
• C = will consist of C1 and C2
• C1 = Utility charges for maintenance of the blocks of apartment /villas they include common areas and lifts (divided by no of
flats/villas )
• C2 = Utility charges at actual for DG Power if you have Smart meters for DG. If no meters the costs are divided by no of
flats..but over a period it will be as per actual with the installation of meters. However there should be a fixed minimum
charges for DG Power.

3. How OPEX costs can be cut down(specific illustration)
Maintenance charges will be a sum of the following = A + B +C
A B C
C1 C2
How Club house will be run Should adopt With Energy Audit/solar With interlinking
Costs efficiently at no profit automation in lamps/rain water harvesting of Gensets. Diesel
Can be or loss basis for the security and facility and efficient water pumping usage will be down
cut benefits of residents. services to bring common utility charge can by a minimum 20%
down down maintenance be down by a minimum depending on the
charges by about 10% 10%. gen-sets capacity
and power
requirement.
A dollar saved is a dollar earned.

4. Focus on taking up CAPEX issues which are easy to have a buy-in in the association(specific
example)
Short term Medium term Long term
(Below six months) (Six months to One year ) (Beyond one year)
Key • Intercom • Energy Audit • Painting works
Activities • Gas Pipeline • Smart Meters • Civil Works
• Water Harvesting
• Solar Water heater
Estimated $ 30000* To be estimated To be estimated
CAPEX
Budget
How to Can be calculated at either $ 60 Can be calculated either Can be calculated either
collect per apartment per quarter or $ 20 Monthly or quarterly Monthly or quarterly
the funds Monthly from owners only. **
* To be confirmed after inviting fresh quotations from at least three vendors
** Indicative amount only. Exact amount to be informed to owners after passing of the resolution in the association meeting. Varies
from an association to the association. The association needs to send a to residents on the criteria for short listing of priority activities.

5. Please kindly send your feedback and comments to
marutish@gmail.com