Money’s a sticky subject when it comes to HOA boards; many of them would much rather spend time engaging with their respective communities and managing relationships with vendors, making sure residents enjoy a flourishing, vibrant neighborhood.
But finances are a necessary part of property management, whether board members like it or not, and it’s crucial that every team stay on top of them. While we’ve written previously on our property management services blog about this subject, we haven’t yet delved into the meat and potatoes of saving green—so read on to discover more on it below.
Plan, Plan, Plan
Saving money doesn’t happen without a budget. This is true when it comes to personal finances, and it’s true when it comes to HOAs. According to HOA Leader, updating said budget and doing an overview of your finances should be done anywhere from quarterly to monthly, depending on your HOA’s size.
On the subject of financial planning, be sure, too, to check in on your state’s laws regarding how often your board should meet when it comes to your finances. Adhering to legal requirements also helps you save cash, as the punishments for not doing so can be severe.
Keep Up With Vendor Relationships
As time passes, your relationship with the vendors that serve your community will grow stronger. This means that you could potentially negotiate lower contract prices now and again, if you don’t mind the potential uneasiness of the process.
It also benefits you to read over those contracts, at least yearly, to make sure that everything on paper checks out in real life—that your HOA is getting the service it rightly pays for, in other words. If you can’t get a better deal and you need one, don’t be afraid to shop around a bit!
If you’re looking to learn more about what makes a fair contract, check out our local property management services blog on the topic.
Rethink Your Insurance
HOAs pay a lot for insurance. Indeed, it might be your community’s largest expense! Just like with your vendor contracts, it pays to review this policy yearly to assess if it’s still meeting your needs, both from a financial and a protection standpoint. There is simply too much money that goes into such policies for it to be used unwisely.
Gassen: Modern Local Property Management Services for Modern Money Needs
Accounting property management is one of our many talents, so if your HOA needs help getting its numbers under control, you know who to call. Reach our Eden Prairie office today at 952-922-5575.