Densely populated high rise condominiums have always been budget conscious. With so many expenses, it’s not hard to overspend and exceed the annual budget. But this year is different. Reducing costs or finding new ways to generate revenue isn’t just a goal, it’s a necessity for many large condo communities. Costs for services, materials, and […]

Florida has historically been considered an ideal state to purchase a winter home. Not only is it easy to get to, but condominium units were plentiful and very affordable. However, a recent law is making prospective buyers think twice about buying a condo unit in Florida.    Table of contents    The law (SB 4-D), […]

Has it been a challenging year for your condominium community? If you answered yes, you are not alone. The cost of everything, including insurance, utilities and staff, is up, and condo owners are feeling the pressure. The bad news is that costs aren’t decreasing any time soon. The good news is that more stability is […]

Would it surprise you to learn that some condominiums are using as much as 35% of their total annual budget on administrative costs? While every condo community is unique, it doesn’t hurt to benchmark your expenses against similar buildings to see where your building’s budgeting strengths and weaknesses lie. Everything is more expensive today than […]

Most of us can successfully keep track of our personal finances, but it’s not something we get excited about. Now imagine trying to document income and expenses for a multi-million-dollar association. If you have served or currently act as an HOA board member, you have a first-hand account of what it’s like to maintain financial […]

It can be an uncomfortable subject, but death is one of the few certainties in life. However, the irony is that this somber event can occur suddenly and unexpectedly.  When a loved one passes, family members are sometimes left scrambling to tie up loose ends on behalf of the newly deceased individual. That may even […]

Condo and HOA communities are non-profit organizations, meaning almost all of their revenue comes from owner assessments or dues. Associations need owners to make their payments on time. Otherwise, they may be forced to increase assessments, levy a special assessment, reduce services, or take out a loan.   Download our free collection policy template     […]

What if your condominium’s insurance premium increased from $400,000 to $3.3 million in one year? That’s what happened to the Peninsula at Hawaii Kai. The Hawaii community, consisting of 630 single and multifamily apartment homes and condominiums, was shocked, to say the least.     Table of contents     Sadly, this type of increase is not […]

2024 has not delivered much financial relief. Money continues to be tight and everyone is feeling the pinch. Naturally, organizations are looking for new and creative ways to save or generate money, and governed communities are no different. Condo and HOA members may be considering wealth-building initiatives including charging for visitor parking, upgrading to more […]

Some HOAs still manually manage finances for their reserve fund. Tediously entering numbers into their excel sheets and trying to reconcile tens of thousands of dollars to produce an accurate reserve fund report. It’s a dated approach to a continually evolving financial HOA environment. Did you know in the USA, HOA reserves have totaled over […]

A reserve fund is like a nest-egg for associations. Every HOA needs ones for unexpected events and major expenses. The money invested in this fund comes from owners’ monthly fees, which are split between the operating budget and the reserve fund. The money put into the reserve fund accumulates over time so that when the […]

The Homeowners Association (HOA) reserve fund is often seen as a safety cushion to be used for unforeseen expenses that arise for major repairs, capital improvements and maintenance in shared community areas, however, this fund has untapped investment potential. With the average HOA fee per homeowner being $200-$300/month multiplied by 365,000 HOA communities in the U.S., […]

Keeping HOA reserve funds strong is a must for the longevity of shared community living. Therefore, the HOA reserve fund is a lifeline that ensures the community’s well-being in the face of unforeseen challenges.   HOAs are stewards of billions of dollars. In fact, reserve funds used for repair, replacement and enhancement of common property totaled […]

Financially secure homeowner associations (HOAs) don’t just happen.  When HOAs are financially secure it’s because HOA board members apply sound financial judgement to reserve fund management using the tools and information available to them.    It’s easy for reserve funds to dip down when rising costs for materials, maintenance, and even legal costs are an ever-imposing […]

Homeowners Associations (HOAs) are held accountable not only by the wants and needs of its community members, but are also governed by statutes:  Additionally, HOAs have their own covenants, conditions, and restrictions (CC&Rs) they must abide by.  Because HOAs are responsible for so many things ranging from financial management to repairs and upkeep and beyond, […]