Tips for Preparing Budgets for HOAs and Condo Associations

Tips for Preparing Budgets for HOAs and Condo Associations

preparing budgets for HOAs and Condo Associations with 2 individuals

As a board member of your HOA, you work tirelessly to make sure your community has the tools and funding to expand and thrive.  


However, we all know that preparing an annual budget for an HOA or condo association can feel like a major chore.  


Preparing a budget for your HOA doesn’t have to be a headache. There are many things you can do to make the process easier.  


In this post, Management Plus has assembled the top tips to help you prepare a budget for your HOA or condo association this year.  


These Tips Make Preparing a Budget for Your HOA or Condo Association Easy 


Proper budgeting is important for a successful HOA or condo association. Use the tips below to help make the process easier and to help your community association avoid financial trouble.  


Create a Specialize Task Force 


There is nothing worse than disorganization when you are trying to craft your association’s yearly budget. Except maybe trying to do the work all by yourself.  


Assemble a group of the most efficient go-getters on your board and hold weekly meetings to hash out your association’s budget. 


Include the board president, treasurer, community manager, and the finance committee head. You can also consider adding a financial consultant for extra help. 


Get Started Early 


If you are reading this, it is time to start planning next year’s budget. 


You don’t want to wait until December when the weather is cold and the holidays are on your mind. Try to start planning your budget before Thanksgiving.  


For the best results, create a budget committee meeting timeline and stick to it. If you can finish before December, all the better.  


Survey Local Homeowners 


Homeowner input is essential. Ask your community association members what changes are most important to the community and what they want to keep the same. 


There is no sense in allocating dollars to a project that will be unpopular with residents.  


Add to that, asking residents for their input will help them feel more involved and interested in the process.  


You don’t have to do everything residents want, but understanding their needs will help get you moving in the right direction.  


Here is a tool to help you get the ball rolling on homeowner surveys: 


Outline Community Goals and Prioritize Specific Projects 


Work with your fellow board members to determine what your HOA or condo association will accomplish over the next one, five, and ten years.  


This will help you realize your immediate and long-term goals.  


After that, you will be able to prioritize your needs from your wants. Things that are essential for community safety and health must be accomplished immediately, while things that will make your community more comfortable or attractive should be secondary. 


Leave Some Cushion in Your Budget 


In a perfect world, your budget will cover all your expenses perfectly and there will be no unexpected expenses.  


Unfortunately, our world is not perfect.  


Make sure your board sets aside some emergency spending funds in case your community faces an unexpected disaster that needs immediate cash.  


Remember, it is always better to overestimate than underestimate.  


Make Your Budget Easy to Present 


While you are creating your budget, you need to keep in mind that you will need to present it to your board and association residents.  


Nothing is worse than explaining the same key points over and over to separate parties. Include visual aids and layman's notes when you are determining the finer points of your budget. That way, when you explain line items it will help reduce confusion and keep you from going over the same points multiple times.  


Need a hand? Here is a wonderful budget proposal presentation template tool to help you get started: 


Budget Better with Management Plus 


At this point, it is time to set your budget into action. If you have followed the association budgeting tips above, then you will be ready to present your budget and submit it for final approval.  


If you need help budgeting or managing your community association, then you need to reach out to an Accredited Association Management Company® like Management Plus.  


We help HOAs and condo associations all over Ohio, Kentucky, and Indiana determine their yearly budget and help them make expenditures more efficient.  


For more HOA management tips and the best property management in Cincinnati, Ohio, reach out to Management Plus! 


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