The Virtual Doorman = Lower Costs + Higher Values

     Now that the building workers contract is all but extended, we know the going forward final figures on the compensation package for a doorman: about $75,000+ per employee per year.  (No, the workers do not get that in cash, but that is about what it costs the employer in wages, payroll taxes, health benefits, and pension contributions.)  See http://www.rabolr.com/2014-residential-negotiations

     A 24-hour doorman position means that 4 employees are needed by the building to fill the week since there are 168 hours in a week and about 40 hours of employment per employee.  That means it costs a building roughly $300,000 per year to have a full-time doorman.  In a rental building, this cost is of no immediate concern to the tenants, since this is the landlord’s expense, and he can presumably pass along the cost of this relative luxury in the rent.

      But in a coop or a condo — our focus — the cost is directly passed on the shareholders (coop) or unit owners (condo) and this will push up the monthly maintenance (coop) or common charges (condo) accordingly.

      If the building is large enough, this cost increase barely will be noticed.  For example, in a 300-unit building, this cost is $1,000 per unit per year, or $83 per month – a small price to pay for around the clock luxury and security.

      But what if the building has only 100 units?  Then the monthly cost is $250 in after-tax dollars.  And if the building is smaller, yet, say 50 units, then the monthly unit cost is $500 in after tax dollars.  Quite a spread from $83/mo to $500/mo.

      Enter the Internet.  Enter “The Virtual Doorman” www.virtualdoorman.com or “The Video Doorman” www.videodoorman.com  — a technology to disintermediate the 24-hour doorman.  As explained by the first: 

 A true alternative to an on-site doorman or concierge, Virtual Doorman provides the same services as a traditional doorman but at a fraction of the cost. Virtual Doorman is an electronic (or remote) video doorman system that utilizes the latest technology to secure your building, remotely greet visitors, grant access, and accept packages such as dry cleaning.* * *The Virtual Doorman system typically includes CCTV cameras that record activity in the common areas and along the exterior of your building. An optional color video intercom allows you to view and speak with guests prior to granting them access.The system can also incorporate electronic card access, which improves security several ways. First, it eliminates the use of traditional keys, which can be copied and passed between tenants, roommates, and guests. At any given time, a building has no idea how many copies have been made and distributed, or who they have been given to. Second, the card access system is remotely managed. This allows tenants to report when their card or fob is lost or stolen in order to have it deactivated immediately. As an extra convenience, tenants are able to order additional keys or cards via the Interactive Web Portal. Third, the access control system logs when cards were used so that in the event of an incident, the access control logs can be crossed referenced with the CCTV footage in order to determine exactly who it was that gained access and what unit they live in.

                 A number of buildings in NYC have installed one of these systems, and this type of feature can even be searched for by an experienced agent with access to the correct tools.

             Is it the wave of the future?  For small buildings, “yes.”  Given the burden of rising cost of real estate taxes, energy, and labor,  building managers (including coop and condo Boards)  of all size buildings will be looking for ways to fully or partially offset these rising costs.  In larger buildings, they may operate in parallel with traditional systems, or cover only some days or shifts.

             These systems can significantly reduce monthly coop/condo operating costs. And that makes the apartment more financially attractive for purchase.

             If you are looking for the opportunity offered by this new technology, ask us!

 P.S.  We are real, not virtual.

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