Budgeting is important in any scenario, and it’s no different for homeowners associations. Taking the time to develop your annual budget for the year is crucial for a successful HOA.
You may be wondering, “well, I’ve never created a budget for my HOA. Where do I start?”. Luckily, we have some easy-to-follow tips to ensure you are as prepared as possible.
Assemble A Designated Team
Creating a budget is no small feat, so it’s essential to ensure you have the right people in place to create it. If you have a designated team in place whose sole purpose is to create the budget, there is a higher chance that it will get done and done right. This team should include the HOA committee heads (president, treasurer, HOA manager), and it’s helpful to include your head of financing.
Schedule A Separate Meeting
Budgets are not something you can add to the end of a regularly scheduled HOA meeting; they take a lot of time to prepare. Schedule a separate meeting day with the designated team to ensure you have as much time as you need. You don’t want to rush through this, so be prepared and ready to work!
Clearly Define Your Goals
As important as having a dedicated team and scheduling separate meetings is, it’s important to know what will be included in the budget. Your goals will significantly impact your budget, so think about what you and your community want to accomplish in the next few years. These goals should not strictly come from the HOA but also from community members.
Make Room For Unexpected Changes
No matter how much you try to be prepared for anything, there is always something that could go wrong. If you plan ahead and try to anticipate changes, you are more prepared to handle them when they happen. Changes like the economy, inflation, or homeowners not paying their dues on time could make a big difference in your HOA’s finances.
If your HOA Board needs help with their HOA budget, contact Prism Realty Management. Give us a call at 512-676-5842 — we’d be happy to talk to you about who we are, the services we offer, and our process.
