Money is something that is on everyone’s mind. Sound financial management is a must to keep homeowner associations (HOA) operating effectively. Homeowners want to know how their dues are being spent, and HOAs want to ensure that they have enough funding to maintain a beautiful and well-functioning community. Kuester Management Group has released a statement to the press regarding ways HOAs can save money this year and stay on track with their budget.
“The economy is always fluctuating, and HOA expenses can do the same,” says Bryan Kuester, President of Kuester Management Group. “HOAs can’t predict when emergencies will arise, but they can do their part to manage funds and make sure there is enough money to cover repairs, replacements, maintenance, upgrades, and other services. Keeping a close eye on finances can help to prevent major jumps in fees and allow for more stable operations.”
One way to manage costs in the new year is to review service contracts, says Kuester. Take time to carefully read through agreements and make sure the HOA is not paying for services that it doesn’t need or isn’t using. Perhaps some services can be scaled back or new agreements can be reached for a better price. Also, compare offers from more than one provider and be competitive when it comes to pricing. Making a switch from one company to another, or negotiating costs, can leave the HOA with more money for reserve funds or other areas.
Check insurance coverage and rates as well. Not all companies offer the same deals. Look at premiums versus deductibles, what exactly is being covered, and whether there are overlaps or gaps in coverage. Once again, compare options and get quotes from more than one provider. Having adequate coverage can also reduce costs down the road should anything happen and an insurance claim need to be filed. This can lower out-of-pocket costs depending on the situation.
Kuester also encourages HOAs to go green. Cut costs by reducing paper waste and shifting documents and forms to online platforms. Rather than distributing multiple copies of files, place them on a secure portal on the HOA website and direct homeowners to these resources. Installing energy efficient systems, motion-sensor lights, programmable thermostats, and other eco-friendly devices can pay off. While it may not seem like a lot of savings at once, it can add up over time.
Another way to keep finances in check and look for opportunities for savings is to hire a property management like Kuester. Property managers can work with the board to identify areas where they can save and prepare RFPs for service contracts. They can also support cost-effective spending, recommend preventive maintenance, enforce collections, and support reserve studies and audits to ensure the HOA is operating as efficiently and effectively as possible.
Be proactive this year in keeping HOA costs down and utilizing funds more effectively. With a new budget in place, make sure finances are well-managed and transparent practices are followed so that everyone is on the same page. If the board needs help keeping everything under control and staying organized, Kuester Management Group is here to assist. Learn more about available services by visiting www.kuester.com.
Kuester Management Group, a division of Kuester Companies, works to protect property values and enhance the quality of life in each of its managed communities. Providing a full range of association management services, Kuester Management Group has worked to foster strong, resilient, and unified communities across North and South Carolina. The company is proud to offer on-site property managers, all zealous for building strong communities meant to stand the test of time. More information is available at www.kuester.com or @KuesterCompany.
Company Name: Kuester Management Group
Contact Person: Bryan Kuester
Country: United States