July 14, 2024

Fryer And Brown

Creating Your Dream Home

HOA Condo Property Management: How Can an Association Reduce Yearly Expenditures?

HOA Condo Property Management: How Can an Association Reduce Yearly Expenditures?

As another year approaches, Home Owner Associations or HOAs are beginning to seek ways to trim the newest annual budget. Condos are typically high maintenance properties due to many owners or renters only being present at different portions of the year. The annual budget for this type of property must include all maintenance, services, insurance, vendor contracts, and other items. Management services assist with yearly and quarterly budgeting to help associations prepare for upcoming expenses. HOA condo property management not only entails expense preparation but also setting fees to appropriately meet budget requirements. A reliable managing service can assist with planning as well as collection of these funds.

HOA Management CompaniesOffer Significant Cost Cutting Tactics

HOA management companies are a great resource for meeting community needs at the most affordable cost. While they do entail a fee, their services make up the cost tenfold through a sufficient and well managed neighborhood. Many things may be done to reduce the yearly budget including the monitoring of monthly utilities. Water, electricity, and various other service expenses can be a large part of the yearly budget. These items typically average the same with the exception of price increases from the provider. An unexpected increase is often due to a leak or some other type of usage problem. A leak reported early enough can lead to the utility company crediting or adjusting the account. HOAs should be able to rely on their on-site supervisor to monitor and detect these issues in a timely fashion. More energy efficient light bulbs or other cost saving techniques may also be applied.

Another more obvious approach many HOA management companies take toward helping an association is shifting focus to covering neighborhood necessities. It is very nice to have the capability of meeting all resident wants but a wiser decision is to make needs the priority. Wants may be sprinkled in when the funds are available but are not the driving force behind a well-run community. Keeping priorities in line also allows an HOA to set back funds for when something unexpected comes along such as a pipe or roof repair. An on-site manager is very beneficial in pinpointing necessary upgrades before the next year arrives. Their input along with the help of a reliable management company can do wonders for a community. An association can accomplish a complete budget solution by sitting down and listing all needed upgrades, possible repairs, and future improvements.

Insurance is the largest contributor to an association budget because it is a necessary expense. By increasing communication with the current agency, a board can obtain improved service as well as better plan options. Let the agent know that reduced budgeting is a goal and openly discuss any suggestions they are capable of providing. HOA condo property management is a very time consuming task which requires an attentive board with the right tools. Management services provide tips for improving the association budgets and also supply the on-site support needed to increase neighborhood quality. Any association struggling with the daily or decision oriented tasks of a community should consider this service to gain an additional resource for better operations.