As secure and well-managed as most HOAs are, they are not completely immune from financial hardship. For example, unseasonably poor weather, such as severe storms and excessive rainfall, can mean that the neighborhood amenities require repair, and that might mean drawing deep into the HOA’s finances. While it’s always for the best to have a pool of funds available for such unplanned emergencies, when hard times hit one on top of the other, it can be the case that these funds might not be enough to cover everything. When your HOA can’t make ends meet, what is a responsible board to do?
Gassen, an Eden Prairie Provider of property management services, is here to help. Below, we describe some initial steps a sensible HO management group will take to begin to get their HOA back on track again.
Take a Good, Hard Look at Your Accounting Property Management
Sometimes, problems arise that are beyond our control that can lead to financial hardships. However, individuals and HOAs alike can just as quickly land themselves in financial trouble by not managing their money right. If your HOA is struggling, the first step to fixing the problem is assessing your budget and seeing where, if anywhere, things went wrong. Did the board not allocate enough resources to fix up the neighborhood pool, and now the problem has snowballed? Are you having problems with residents not paying their fees? Is your accounting property management not up to snuff? Even if you believe you have found and isolated the issue in your budget, you should still do a full analysis of your HOA to ensure that it is the only area that needs to be remedied.
If the fault was truly that of the board, make adjustments and vow to do better in the future. However, regardless of the problem’s source, you’ll still need to:
● Decide how you’ll broach the subject to your community | A lack of finances can be a thorny topic. It pays to consult with a property management company to determine the best way to handle this.
● Debate if you should increase resident fees | An HOA management company can help determine if so and by how much.
● Figure out where to cut spending | Can you replace expensive community events with cheaper ones? Can you use volunteer work instead of hiring someone for a simple neighborhood maintenance task? Every little bit of money saved helps.
Floundering HOA? Contact Gassen Today
We provide everything from online property management to more general HOA management, and we’d be happy to help your HOA. Give us a call now at 952-922-5575.