HOA Budget Tips

Drafting a budget

Take advantage of your financial reports. They can show how certain expenses fluctuate throughout the year and over time. Using at least 3 years of historical data will assist in establishing expense patterns and reference any common area projects that were completed and may need to be revisited.

Eliminate surprises by bidding out projects that you know will be completed the following year. 

Review vendor contracts and confirm prices. Not all vendor contracts re-new on a calendar year and unplanned increases midyear can hurt the overall budget.

Budgets are planning tools. No matter how great the budget is, you cannot plan for everything.  Consider adding an emergency/contingency line item for unplanned events such as extreme weather, theft or vandalism.

Monitoring a budget

Expenses should be properly noted on the Income Statement throughout the year.  Avoid grouping expenses into one category. Create different line items such as contract fees versus seasonal items or one-time projects. 

Review expenses of certain items through out the year.  Is it costing more to repair an item than it would to replace it?  Think long term savings.

A few saving tips

• Use free venues such as libraries for meetings.

• Invite vendors to sponsor community events to offset expenses.

• Review amenities for energy-efficiency.

  • Turn off the A/C when facilities are not in use

  • Use energy efficient light bulbs

  • Investigate the cost savings and rebates of installing energy efficient windows and cooling/heating units

Contact us to learn more about Novele Community Management and how we can keep your Community financial stable.