Aside from manicured surroundings and high property values, amenities are the main benefits of living in an HOA—so it’s smart of your HOA management to pay attention to them. When you get these “extra perks” right, they become more than just perks, but the wellspring from which a tight-knit, thriving community comes.
But putting your efforts into renovating old amenities isn’t always the way to go, even though these spaces might very well be beloved. Sometimes, your HOA needs to expand and create exciting new recreational opportunities. Below, Gassen, your local property management providers, discusses how to know when to take the plunge.
You’re in Good Financial Standing Otherwise
Expansion is only to be considered if the budget is currently balanced and proportionately correct. Otherwise, where is the money to come from? Sure, you may have to increase dues to pay for the amenity, but if your neighborhood needs money outside of that, extraneous situations should be tackled first to stop finances from spiraling out of control.
Accounting property management can help see if the stars align monetarily for your HOA and its potential new amenity. Check out our property management services blog, too, for some additional money management tips.
You’ve Accepted the Additional Costs
When it comes to amenity construction, it’s not just the creation of the facility you’ll need to pay for. Just like your current amenities, new ones are bound to come with a price tag for continuous maintenance, but this is too often forgotten—or at the very least not given its due diligence—in the excitement of brainstorming and imagining the future.
Common additional expenses include permits, grounds maintenance, administration costs, and insurance. You’ll also want wiggle room in terms of contractor fees in case a change order needs to be filed or they discover something unexpected that slows the work.
You’re Looking to Expand the Neighborhood in General
The more well-maintained and thoughtfully chosen amenities your HOA has, the more potential members it’s likely to attract—if you’ve got the housing space available, of course! Amenities are great selling points if you’re looking to extend the reach of your neighborhood. In fact, they’re so popular that sometimes HOA management has to deal with non-residents trying to use them, so keep your eyes out.
Gassen: Here to Help Your HOA Management Make Smart Choices
Our Eden Prairie team is here to bring excellence to your neighborhood. Reach our office today at 952-922-5575.