HOA budget season is upon us! While it can be cumbersome to put one together, it’s essential for smooth operation of your association. Follow these tips to help get on track.
- Review. It’s imperative to review last year’s budget so you have some context. This way you can get a handle on expenses. Sometimes expenses exceed forecasts, so it’s important to review expected vs. actual costs when planning.
- Forecast. Conduct an informal assessment of what the community might need as far as maintenance in the year ahead. For example, will the clubhouse need a new roof? Are there any major landscaping projects that need to be taken into account? There’s always something, however proactively planning projects can save you from some headaches and unpleasant surprises down the road.
- Do due diligence. It’s never a bad idea to renegotiate terms with current vendors. Are they willing to give you a loyalty discount? If they won’t budge, don’t hesitate to shop around. (Also, make sure the cost of any services are agreed upon in advance. Make it clear that any additional work/costs will need to be approved by the board first.)
- Plan for the worst. Unplanned expenses have a way of surfacing, but preparing will ease the hurt. The best way to do this is by regularly contributing to your budgeting for contingencies.
With these practices in mind and employing common sense, your community will benefit a lot from a solid foundation. Likewise, it never hurts to call in the experts for reinforcement. Put our team’s expertise to work for your community and breathe a little easier. Call us at: (703) 221-5405.
