With consistently rising prices, higher material costs, and expensive vendor fees, it’s never been more essential to prepare your HOA Board and community for inflation and take steps to avoid any financial troubles throughout the year.
Let’s take a look at some of the best ways to combat inflation to protect your HOA community financially.
Budget As Early As Possible
How early is too early to draft your annual budget? The secret to success is it’s never too early, especially when inflation is on the rise. Planning the yearly budget earlier in the year will give more time to obtain bids, ensure that the entire year will run smoothly, and also give homeowners the time to prepare for any increases.
Don’t Wait To Increase Assessments
If the inflation of costs is now placing pressure on your bottom line and any reserves, then it might be time to consider an assessment increase. First and foremost, get ahead of the game and prepare your community. Start the conversation as early as possible so that your homeowners aren’t in the dark and can prepare themselves for these cost increases.
Budget Community Projects Accordingly
Have you steered clear of complex community projects ever since prices increased? While this may seem like the best route to protect your finances, remember that these projects are an essential part of an HOA and will directly impact your homeowners, and they will notice the halt. Instead of retreating from projects, attack them strategically. Consider shifting timelines to the off-season to allow for cheaper vendor options and avoid any rush fees for services.
If your HOA Board needs help with surviving inflation, 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.