Pros and cons of living in a high-rise and high-rise management

High-rise management and living

When determining if a high-rise apartment is for you, you may need to consider a few key things. Will you be a resident or board member as well? What are your priorities in amenities? What tools and insights will you need as a board member?

In this article, we’ll discuss the main characteristics that make up high-rise living, operational and budget trends for board members, and everything you need to know if you are interested in a high-rise community! But first, let’s compare the definitions of a low and high-rise apartment.
 

What is a high-rise vs. low-rise apartment?

Before we compare the two, it’s crucial to know what is a high-rise in the first place. High-rises are a common feature in the modern cityscape; however, their exact definition can differ depending on the country or organization you reference. In the US, for example, official guidelines from the National Fire Protection Association classify an apartment building as high rise if it stands at seven stories or more, and any structure over 40 to 50 floors is considered a skyscraper— though many high-rises meet skyscraper standards with 40 stories or more. On the other hand, low-rise condos are typically four stories or lower and can be referred to as garden apartments.
 

Pros and cons of high-rise living: Considerations for future residents

This can all depend on what your priorities are for your home. Knowing what to expect in a high-rise community can help you understand if this is a worthwhile investment of your time and money. A few advantages to high-rise living are:

• The view: Oftentimes, to get a good city or ocean view, you need to be a few stories off the ground. Not to mention that less unobstructed views equal greater natural light in your high-rise apartment.
   
• Location: Many people are attracted to high-rise condos for their locations – often convenient to cities, business districts, and cultural centers. If you work or live in a big city and wish to cut down on your commute, a high-rise property can offer you the benefit of a great location within walking distance of many dining, work, and entertainment offerings.
   
• Amenities: With a more significant number of units and a luxurious approach to residential living, high-rises tend to offer greater amenities such as a front desk/concierge, a gym, pool, and more. This will undoubtedly vary between each property but is a large bonus of high-rise living.
   
• Elevators: One thing you can count on in your high-rise is elevators. It is typical to see the absence of elevators in low rises because of their size; however, high-rises usually boast more than one elevator to cut down on resident wait times and increase effective traffic movement in the building.
   
• Maintenance: Because of their size, high-rise apartments generally have an onsite management office that handles all leasing, maintenance, and other requests. This means repairs can be carried out faster and more efficiently, primarily if the property is run by a professional property management company that can offer knowledgeable, dedicated staff and resources.

Are there drawbacks to high-rise living?

While these are all excellent advantages to have in a high-rise community, there are a few other characteristics to consider.

• Higher costs: The cost of living in a high-rise apartment is often greater than that of a more modest building due to the increased cost associated with construction and maintenance. Their monthly service fees can also include provisions for security, cleaning staff, or door attendants.
   
• Storage: Some establishments base monthly HOA or condo fees on a unit's square footage— so storing extensive collections could result in higher payments. Fortunately, some buildings offer storage services as well; these may come at an additional fee but can help you store all your belongings.
   
• Pets: Owning a pet is becoming increasingly common; according to the Humane Society of the United States, over 70 percent of households have at least one pet. When searching for a high-rise home, make sure to factor in any pet rules and restrictions, like whether it allows pets and if they have weight or size restrictions. Certain communities sometimes offer unique amenities like dog walking areas and waste disposal bags on-site.
   
• Parking: If you're considering moving into a high-rise, parking rules like the number of spaces available may be an important factor. In many high-rise buildings, units are assigned one or two parking spaces, but if you have more vehicles, you should find out if additional space is available for purchase or rent.

What to expect as a high-rise community board member

As a board member, you may be aware that all communities differ greatly. Although they can share some similarities, high-rise operations are not the same as those in master-planned communities, for instance. There are a variety of differing factors including:

• Building structure
   
• Maintenance needs
   
• Security requirements
   
• Amenities
   
• Insurance
   
• Resident dynamics

High-rise operating for boards

To know what your management team should focus on, strategies are needed. Like any other type of property, the internal budgeting process often stands at the nucleus of these factors’ operations. For these to deliver to market standards and above, it’s important to organize what keeps these moving in the first place: budget.

Most importantly, with the appeal for high-rise living increasing, its management complexities continue to grow as well. In our recent study of 15 high-rise markets in the U.S. and Canada, we found the top factors driving budgets for this type of property include:

• Reserve study and funding
   
• Retaining top talent
   
• Insurance availability and cost
   
• Utility prices
   
• Sustainability

High-rise management tips

What is happening with reserves?

If you already have experience as a board member, you may be aware of the latest news regarding reserve funding laws in the United States. Recently, the Community Associations Institute (CAI) supports mandated reserves studies that will help fund for new developments, and periodic reserves for those communities with major shared components. Although not all states have been introduced with this legislation, the following already have them in place:

• Florida
   
• Connecticut
   
• Georgia
   
• Hawaii
   
• Illinois
   
• Maryland
   
• Michigan
   
• Virginia

In fact, our report points to two key trends that are shaping high-rise reserves: the legislative changes following the Surfside building collapse in 2021, and the proactive steps taken by board members to increase contributions, driven by a deeper understanding of best practices. For a closer look at how these trends are impacting reserves and the decisions behind them, our BENCHMARK report provides in-depth insights and data behind strategic operations for reserve contributions.
 

Cost of labor and staff continuity

High-rises come with the advantage that residents can feel at ease while having a point of contact directly in their residence; this is a luxury for some, and once you have a solid team of associates that perform and deliver quality work, retention is key. Retention is being highly prioritized within properties all over North America as maintaining quality and efficiency of operations, building trust, and rapport with residents is sought after by associations. Although these prices vary from market to market, those associations who reported high labor costs compete with other service industries and employers for talent. Those association markets included New York, San Francisco, Seattle, and Boston.
 

Insurance access and cost

Protecting your community is essential and a key aspect of being a board member. However, with the current complexities of the insurance market, this task has become more elaborate and difficult for some. Although, our study shows how “insurance premiums consume a large portion of budgets, amounting to 24% of budgets in Tampa and 21% in Miami. This trend is also notable in Las Vegas at 17% and Vancouver at 18%, indicating a broader pattern of market tightening and climate-related risk.”
 

Utilities

Rising costs in utilities, specifically sewer and energy, have contributed to higher budget increases in many markets. Our report shows how “the greatest share of budget in cold-weather climates such as Toronto at 25%, New York City at 19%; Boston at 17%, and Vancouver at 18%.”

These utility prices are expected to continue increasing due to global supply issues and power grid infrastructure, and it is crucial communities are prepared to manage these shifts in costs.
 

Sustainability

To address climate change and other environmental issues, associations have begun shifting their budget strategies and prioritizing education on these matters. With that, communities are allocating budget for practices and enhancements that can help mitigate the effects of environmental issues, such as: creating rules for solar device installations, electric vehicles charging stations, and practicing incentives for energy and resource-saving initiatives.
 

BENCHMARK: High-rise

High-rise living can offer a unique combination of luxurious amenities, prime locations, and modern conveniences that make it an appealing option for future residents. Although it can come with its own set of challenges, high-rises can be ideal homes for many.

For board members in particular, managing a high-rise community can require a keen understanding of operational and budget strategies.

To help you navigate these complexities and stay ahead of industry trends, we invite you to download our BENCHMARK: High-rise guide.

With data compiled from communities in our managed portfolio of 3,800 high-rise buildings across major urban areas across North America, BENCHMARK helps community association boards, developers, property managers, and owners of high-rise properties make informed decisions about their operations and budget strategies.

Download the report and gain key insights to help elevate your high-rise community!

Contact FirstService Residential, the high-rise management leader, to learn more about high-rise living.