Americans living in homeowner’s associations (HOA) and condominiums have told pollsters they are overwhelmingly satisfied in their communities for the seventh time in 13 years.
Despite this satisfaction, however, it doesn’t mean that a homeowner’s association can’t do better and can’t save their residents more money.
If you’re on the board of a homeowner’s association, here are ways your HOA can save money in 2021.
1. Move to the Digital World
Moving your HOA to the digital world isn’t just good for the environment, it’s good for the bottom line. Implementing a website or mobile app for your association is a great use of resources and money beyond postage costs and printing costs. It can also save your board members and the team at your residential property management company time when it comes to communicating and doing business with your homeowners.
2. Hire a Professional Residential Property Management Company
Hiring a residential property management company will cost you money, yes, but in the long run, it may save you money. And it will certainly save you time. These companies could help your association deal with unforeseen expenses for bookkeeping, legal guidance, administrative assistance, and other errors.
3. Review the Association’s Electric Bill
If your bill has been steadily going up or suddenly sees spikes or dips, something could be wrong. Always double-check the bill for wrong billing rates or additional service fees.
4. Review Your Association’s Insurance Policies
Your association’s insurance is certainly one of its biggest expenses, so it’s something you and the board should be paying special attention to via an annual review with your agent. During this meeting, review how your needs have changed and what that could mean for your insurance rates.
5. Negotiate Vendor Contracts
Along the same lines as reviewing your insurance policies, when you’re looking to save money for the HOA, you should review each of your vendor relationships and look for ways to save money. In many cases, you should be able to work with a vendor to find ways to cut costs. For example, if your HOA uses a landscaper you could negotiate, so they come once a week rather than twice.
Managing the budget for an HOA can be a stressful task, with a lot of people relying on you. But, it is possible to save money, if you know where to look.
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