Now that 2019 is underway, it’s time to enact the HOA policies you’ve set in place. What you’ll soon find out is how these policies will alter your reserve study. Although we’ve helped you update your reserve study this year, you’ll no doubt experience some surprises.
Whatever changes you’ll need to make, we can guide you through the process so you can be prepared over the next few years as your policies play out. Below are some HOA policies and procedures that have significant effects on reserve studies.
Resident Guidelines for Moving Out
What are your residents responsible for once they move out? What repairs and maintenance will they need to undertake to satisfy your current contract? Keep in mind; whatever they do not take care of, you’ll have to add to your list of responsibilities. This could incur additional expenses you did not see coming. If you foresee other costs, schedule a meeting with us and we’ll go over the property management details in your reserve study.
HOA Member Maintenance Requirements
What you want your HOA members to be responsible for is determined mostly on what they’re capable of either doing themselves or what they can reasonably afford to pay for professional service. For example, you wouldn’t expect your HOA members to replace an entire HVAC system themselves or even pay for it if they were renting a condo. That responsibility would typically lie with the condo owner. On the other hand, they might be responsible for an annual inspection of the HVAC system. The changes in these policies can affect your reserve study’s bottom line. If there are any changes to these policies, we need to know about it.
HOA Annual Fees
This one gets a little trickier because your board has to establish what HOA fees pay for every year. Do they pay for fringe benefits or facility maintenance? If HOA fees pay for expenses that would otherwise come out of your pocket, raising or lowering the fees will have an impact on your reserve study. Before you decide to adjust your HOA fees, we can consult with you to determine the purpose of adjusting them and how much.
Legal Rights of HOA Homeowners
When it comes to setting policies in your HOA, everything is governed by Minnesota state law. Therefor,if a policy is in violation of a new law or regulation, you’ll need to change it. Such is the case with legal rights of HOA Homeowners. Legal rights have a way of affecting a reserve study in ways you didn’t expect. Some examples might be:
● Modifying units for disabled dwellers
● Rights of ingress, egress, and property access
● Dogs, cats, and other pets
● Additions to the property
● Towing vehicles
Gassen Offers Custom Reserve Studies
Gassen offers a wide range of services for property owners in Minneapolis and St. Paul, Minnesota. Our services include property management, real estate listing and management, HOA management and consultation, and reserve study development and updates. If you are looking for a reliable firm to manage your property and keep you ahead of your finances, contact us today at 952-922-5575, or you can message us on our contact page.