Real Estate News

Homeowner Associations And Their Budgets


Written By: Richard Thompson
Sunday, January 19, 2020

Diamonds in the Rough

Many homeowner associations find it difficult to hold the line on expenses. Inflation erodes endlessly increasing budgets and members scream for >

Insurance. Raise the deductible and reduce the annual premium. Create a line item in your Reserve Study with a life of three years called "Insurance Deductible" equal to your deductible. If there is no claim during the three year period, the money is saved.

Pools. Check temperature and pump cycle times and adjust for savings. Swimmers may not notice a two degree drop in temperature, but lower temperatures significantly decrease the heating bill.

Lighting. Convert to high lumen-low energy lighting. The conversion expense is usually paid back within only one to two years due to reduced power and labor costs.

Distributing Information. Many meeting notices and information can be distributed to residents by way of flyer boxes like the ones used by real estate agents. Even better, distribute information by email for nothing.

Have an HOA Website. Enjoy HUGE communication savings with your own HOA website. Post important information like the governing documents, newsletters, meeting minutes and rules. Use email for maintenance and information requests so the information is moved quickly to the right person with a date stamped record. Poll your members on important issues or proposed policies. Notify them of meetings and other events. An HOA website is probably the best move your HOA can make to improve efficiency and reduce costs.

Preventive Maintenance. Catch problems when they are small enough to resolve cheaply by regular property checklist inspections. Of particular importance:

  • Carpet Cleaning: Professionally clean common area carpet at least once a year to prolong its life.
  • Gutters amp; Downspouts: Clean at least annually prior to winter or rainy season; clean out underground drains as needed.
  • Paint: Use only the highest quality paint suitable for the application for maximum performance and durability.
  • Roofs: Inspect and clean annually prior to winter or rainy season; look for obvious problems like missing shingles, breaks in the membrane; contract with a roofing contractor to perform this function automatically prior to winter.
  • Sidewalks: Inspect annually for tripping hazards; grind down or remove and repour.
  • Trees: Prune trees every 3-5 years to eliminate deadwood, enhance shaping and identify treatable diseases and pests.

Handyman Services. For HOAs that cant afford a full time maintenance person, contract with a licensed, bonded and insured handyman who can perform a monthly "laundry list" of small repairs. Combine tasks to provide a full days work.

Wood Fences. Use a stain rather than paint since stain wont peel and requires less frequent maintenance. For cedar amp; redwood: Leave unpainted to age naturally. No stain, paint or sealer required. Use steel pipe instead of wood fence posts that dont rot.

Paint Supplies. Discuss special pricing options with local paint supply companies. If your HOA is large enough, it may qualify for contractor pricing.

Sidewalk Repair. Use a grinding service to repair walkway uplifts and tripping hazards instead of the replacing the concrete.

Water Usage - Exterior

  • Install a sprinkler system with a rain sensor to eliminate unnecessary cycles.
  • Early morning sprinkling reduces water loss from evaporation.
  • Adjust sprinkler heads frequently so water lands on the vegetation, not the paving.
  • Plant native and drought tolerant grasses, ground covers, shrubs and trees. Group plants together based on similar water needs.

As a jeweler carefully examines and sorts his gem stock, consider the ways your homeowner association spends its money. Cut and polish those items that arent shining like they should. If you look closely, you will indeed find diamonds in the rough.

For more innovative homeowner association management strategies, subscribe to www.Regenesis.net



Copyright© 2020 Realty Times®. All Rights Reserved

 

Facebook linkedin twitter youtube googleplus instagram
Map SearchClick here for a free Market AnalysisBuyers: Search here for your Dream HomeSubscribe! Sign up to recieve our Newsletter!Real Estate Outlook
Updated: Sunday, April 05, 2020


3 Decorating Tips To Make Your House Looks Fancy

1. Living Room

The living room is part of the home where you are like...
> Full Story

Buying a Home? Don’t Forget to Ask These Questions!

Can You Have a Copy of the Homes Sales History?

It is important to know about how many ti...
> Full Story

Should You Buy a House During the Coronavirus Outbreak?

Shark Tank star and real estate icon, Barbara Corcoran, is the latest to weigh in, telling TMZ th...
> Full Story



Copyright ©2020 - Realty Times®
All Rights Reserved.