Which of the following could increase if there is a lack of compliance in property management?

A lack of compliance in property management can lead to an increase in insurance costs. This is because non-compliance often means that certain regulations or safety standards are not being followed, increasing the risk of accidents, liabilities, or legal issues. Insurance companies assess risk based on compliance with industry standards; when facilities do not meet these standards, they are perceived as higher risk. Consequently, insurers may raise premiums or offer more limited coverage options, resulting in increased costs for the property manager.

The other options generally would not increase or may even decrease due to a lack of compliance. For example, employee morale might suffer if safety standards are not upheld or if there are legal troubles stemming from non-compliance. Operational efficiency may decline due to the time and resources spent dealing with compliance issues, not to mention the potential for increased downtime or disruptions. Customer loyalty could also diminish, as tenants or clients may be unhappy with substandard conditions or the perception of an unprofessional management approach. Therefore, increase in insurance costs stands out as the most likely consequence of non-compliance.