10 Money-Saving Strategies for Your HOA
Saving money is a pretty admirable goal, especially in today's challenging economy. Every dollar you save in an HOA helps avoid higher assessments, which means more money for your association. And when it comes to saving, going with the budget flow might not help you save enough.
However, thinking outside the box rather than following the crowd may provide you with opportunities to save a little money here and there, which can add up to make a big difference.
So, 10 Money-Saving Strategies for Your HOA:
1. Go Digital
Using a mobile app or website to save money is a terrific idea. An online presence – whether app or website – is more convenient for board members, employees, and residents since it makes better use of resources, money, and time. Users can also readily access critical documents and receive updates while saving money on mailing and printing.
2. Implement A Power-Saving Strategy
Irrespective of the electric company you're using, there are always ways to help you minimize the amount of electricity getting wasted every month.
For example, if you think about when your community's lights should be switched on in common areas, you can quickly reduce the amount of energy utilized. You may significantly reduce your HOA expenditures if you are diligent with your power usage each month.
3. Periodically Evaluate Service Contracts with Vendors
With time, your HOA will build relationships with outside vendors that offer vital services to your community. So ensure that you check with them from time to time. At times, they might be offering special promotional prices for their services. Always check to see if you can apply for these discounts to help you cut costs on HOA expenses.
Conducting yearly reviews with your community's vendors is at all times a good idea and may help you do away with avoidable costs. Evaluate all contracts, and confirm that your association is getting the services it requires and paying the right price. If you find inconsistencies or are unsatisfied with their services, it doesn't harm going through bids and seeing what other vendors offer. Notwithstanding, be careful not to hold back—if a vendor quotes you an amount that sounds too good to be true, it's probably true. Please take into consideration their work history, references, and customer service.
4. Invest in Routine Maintenance
If you have high monthly water costs, it could be due to faulty pipes and running sinks and toilets. And these issues can waste equal to hundreds of gallons of water each day. Therefore, you should always ask your maintenance company to perform routine checks to see if your plumbing fixtures are working correctly. Again, you can also check your meters to see the differences between your water usage and the amount you get charged every month. Addressing these issues can substantially cut down costs in your HOA.
Furthermore, when it comes to maintenance, your board members should be proactive rather than reactive. Address problems early and ensure you're providing proper and regular care to prolong the life of items, lessen the costs of repairs, enhance safety, and eventually save time for your board and some cash for your community. Overlooking small-scale preventive maintenance and waiting for things to fail could ultimately lead to large-scale repairs as well as more expensive services.
5. Negotiate Volume Discounts
If you're operating a more prominent association, you can save money on cable, phone services, internet, and waste removal. Service providers may give you a discount just because you requested a bulk discount for the owners.
6. Manage Legal Costs
It is very vital to consult with law firms for specific issues. However, there are times when involving a law firm in an issue is unnecessary. Moreover, if your HOA has collection cases, it is imperative to pursue those uncollected assessments only if it makes sense. For instance, getting a judge to award an order of possession to an HOA for a unit that needs $15,000 in repairs to make it rentable is perhaps not a wise legal expense.
7. Frequently Review Your Budget
There is always a thing or even two that you add to your budget that might not be essential at the moment. By reviewing your budget, you can prioritize what's crucial and what's not and then make the necessary adjustments to save you money in the long run.
8. Review Your Insurance Policy
Your HOA's insurance is undoubtedly one of the most significant expenses, so it's something you should pay attention to through a yearly review with your agent. Always evaluate how your needs have changed over time and how this affects your insurance costs during this meeting.
9. Reschedule Non-Essential Projects
When reducing your HOA budget, assess which projects are vital to the area and which can be postponed for one or two years. Roof leaks, for example, must be addressed immediately, especially during the rainy season. However, if funds are limited, the renovation project may be rescheduled.
10. Install A Rain Gauge
Installing and maintaining a rain gauge is another excellent approach to save money on your HOA's budget. Rain gauges are affordable and might help you save money on your water bill. You won't have to pay for extra water because the water they collect can be used for irrigation. If you already have a rain gauge, make sure it isn't clogged so you can use it to its maximum potential.
Managing and keeping an HOA budget on track can be a daunting endeavor, especially when you have a large number of people relying on you. Regardless, by following the advice provided above, you will be able to cover all of your expenses without sacrificing the quality of service provided to your people.