Managing HOAs can be a daunting task. There are a hundred different responsibilities to look after, the most critical one being the finances. Here’s where the Phoenix HOA management companies come in.
It is the board’s responsibility to manage and take care of the finances. Freshers are not recommended to handle them.
Finances are a complicated thing. A lot goes into maintaining them. A slight mistake can lead to disastrous situations. Therefore it is strongly recommended to hire a professional such as an accountant or a good management company.
What is the HOA budget?
An HOA is a planned organization. The HOA budget is maintained to look after the finances of the organization. This budget is used for the maintenance of properties, repairs, utilities, etc.
It is crucial to look after your HOA budget because expenses keep increasing by each year. You must be prepared for any sudden expenses such as repairs and replacements.
How to manage your HOA budget
It’s true that managing finances is indeed a difficult task and shouldn’t be done by a fresher. However, you can take some steps to contribute to this task.
Always have a future plan ready
Inflation exists, and expenses aren’t going to go down anytime soon. You should always be ready with a reliable plan for how to manage the finances of the coming year. These include the maintenance of lobbies, pools, tennis courts, elevators, and standard utilities such as water and electricity.
Be up to date with your bills
Do not delay payment of bills. We cannot stress this enough. Delaying payments is the worst thing you can do to your budget. Clearing dues will give you a clear picture of how much money you are left to work with.
Prioritize the things that are best for your community
Wasting money on useless things will have you suffering in the end. Plan and make a list of necessities required for everyday use. Spending on unnecessary things will increase monthly HOA fees, which will upset the residents.
Having insurance is essential for everybody, and HOAs are no exception. These come in handy when there’s a need for sudden expense, for example, in cases of accidents.
Negotiate with vendors
If your community has been working with the same vendors for years and are still on the same contract, you have a right to renew the contract. As we’ve mentioned before, inflation is accurate, and prices of commodities keep rising every year. Therefore, it is not unfair to increase the monthly charges of the vendors.