Running an HOA is complicated, multifaceted, and sometimes confusing – especially when it comes to finances. Even experienced HOA management boards can have trouble keeping things seamless, with numerous local laws stating what they can and cannot do, as well as ever-changing community demographics and the sheer quantity of numbers they have to tango with.
However, if your board is struggling for financial stability, things are serious. Your residents depend on you to steadily increase the quality of neighborhood life, and this becomes far more difficult without relatively steady cash flow. Plus, the situation is no doubt weighing heavily on the board’s minds, resulting in decreased performance, feelings of failure, and so much stress.
Gassen is here to help! As providers of property management services, accounting property management, and more, we’ve assisted numerous HOAs in getting a hold of their finances.
Set an HOA Budget
Budgeting well is the number one thing your HOA can do to gain monetary control. A detailed plan, whether it comes from a property management services provider or otherwise, will help your HOA see “money pits” – items that cost more than their tangible or intangible return – and where you need to step up your game.
Collect Dues Promptly
While a little wiggle room on the due date is okay, especially given current circumstances, your board still depends on this money to care for the neighborhood. Consider online property management tools if residents are having trouble paying up.
Hire an Attorney
Though the law is complicated, the consequences of landing in legal hot water are harsh, especially monetarily. If you’re ever unsure about the legality of something, contact an attorney, and do your research before making any major moves.
Communicate With Residents Often
When communication lines are open, residents will actively and vocally hold you accountable for your financial decisions. This is, contrary to what you might think, a good thing. It keeps the board working towards its financial goals as well as promoting community-wide input.
Contact the HOA Finance Experts at Gassen & Get Organized
Can’t see your way out of your current struggles? Reach out for a helping hand and give Gassen of Eden Prairie a call today at 952-922-5575. With our genuine care and massive amount of experience, we’ll get your community back on track for good.