Many businesses and HOAs fail because their leaders do not account for future expenses. Therefore, when these expenses arise, there is no funding for these, and the organization will likely fold. Gassen has put in place the right tools to help you secure your organization's financial future. We’ve accomplished this by developing a customizable reserve study.
By using this study, you can target exactly where your money will be spent and how much you should reserve for these expenses. Below are five ways that you can personalize your reserve study to suit you HOA’s specific needs.
Create Your Own Component List
We can help you compile a complete list of all your estimated expenses and when they will occur. For instance, if your HOA is in charge of covering general landscaping throughout the neighborhood, then you itemize each item line by line and estimate how much it cost. The list will cover every detail such as plants, fertilizer, tools, and equipment, upkeep, or hiring a professional company to come in and do it for you. Then the cost would be scheduled at designated intervals. Does the landscape need maintenance weekly, monthly, or is it seasonal? Does it require basic care like mowing, or will it need more detailed maintenance such as trimming and planting flowers?
Customize Funding Scenarios
What are all the possible outcomes of your HOA down the road? These are questions that we ask every single day. This is how we can set your organization up for success in case things do not quite go as planned. By creating more than one possible scenario, you will be prepared for all of them. Some examples might be:
● What happens if your HOA grows faster than expected?
● How will you fund your organization in the event of a natural disaster?
● If more homes are added to your neighborhood, then how will that affect your expenses?
● How much will tools, supplies, property, taxes, etc. cost in ten years?
What is Your HOAs Expected Cash Flow?
We discovered that with many HOAs, projecting cash flow can be a bit tricky. Over time, however, we can help you discover patterns that give you a general idea of how much reserve you can expect over a longer period of time. You may want to start with a five-year plan and then move into a longer projection that could exceed 30 years.
You can customize and adjust the expected cash flow as you go. Gassen reserve study specialists can help you fine-tune your projections as you go so that you are always prepared for possible fluctuations in the future. If your organization makes changes in board members or leadership, then they we will supply you with the most current information so that we can be successful.
Gassen Can Help Your Secure Your HOA in the Days to Come
The reason why HOAs and other businesses choose Gassen, is because we have a proven track record of protecting your assets, your HOAs infrastructure, and reserving funds when you need them the most. We provide resources, education, and sound professional advice for HOAs across Minneapolis and St. Paul, Minnesota. We can help you develop a reserve study that will strengthen your leadership and give you a solid plan for the future. Call us today at 952-922-5575 and schedule a reserve study session today!