HOA reserves are a crucial area of HOA management. Performing routine inspections can go a long way in preventing costly repairs or replacements in the future. After all, smaller repairs are easier and cheaper to make than big ones. Maintenance is already a big part of managing an association, but you should make sure to do it on a regular basis and with vigilance. It’s a way to spread out the costs and lower HOA fees at the moment. This way, you can get the crucial repairs done this year, then you can see to the others later. Those roof repairs on the walkway that hardly anyone uses can probably wait as well. That hallway redecoration for the condo can perhaps wait for next year. That is, try to see if you can put off non-essential projects. If you are getting complaints that HOA fees too high to pay, consider sticking to the essentials. Also, don’t hesitate to renegotiate with your current carriers every time your policy has to be renewed. Check with your insurance carriers if you can negotiate lower premiums if you get new coverage from them – like if you’re getting new D&O insurance, for example. Insurance costs can quickly add up for an HOA. The HOA board should take up the initiative to discuss fees with their property management company. However, external property managers will not be likely to lower the fees of their own accord.
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Ideally, your property managers will also be helping you with ways on how to reduce HOA fees. Talk to Your Property Management About Fees This way, you’re lowering landscaping costs, and at the same time lower HOA fees, in the long run.Ģ.
There is also the option of replacing high-maintenance gardens and trees with lower-maintenance alternatives that will look just as nice. The HOA can try to reduce the frequency of hiring a landscaping crew. However, the board should also check if it’s worth it to maintain extensive garden areas frequently. Just how much is your HOA spending on landscaping and gardening? The aesthetics of your community is crucial to raising property values. Here are some areas you can check in order to try and lower HOA fees for everyone. One of the first things you should do to accomplish that is to have your board read over your association budget to look for areas that might be unnecessary.Īre there areas where the money is being spent on things that aren’t needed? Do you have insurance premiums that are too high? Take some time to analyze the budget areas and brainstorm ways to lighten it up. It could be time for your HOA budget to get the same review as well.Įven if money is not tight at the moment, it’s always a good idea to make sure that your HOA is cost-effective in everything that it does.Ĭan HOA fees be lowered? Absolutely. You may regularly check your household budget for unnecessary expenses. If the contract also specifies the number of crew or staff assigned for the job, consider if you need all of them as well. Consider reducing the number of times the service is provided. It may be time to ask for a rate reduction or look for someone new.Īside from the rate, don’t forget that you can also renegotiate their schedule as well. You may need to determine whether or not you need to re-negotiate with them. See if any of them have gotten too high, relative to the rates in your area.
The contractors might have increased their rates each year as well.Ĭheck these old contracts and compare them with the current rates. Many of them were set up years before, perhaps even before your current HOA board. Sometimes you’ll have old contracts going on. You can use that to your advantage and try to renegotiate terms more favorable to your association. Especially so if there is competition in your area.
Keep in mind that a vendor will usually try to retain your business when it can. So, if you can save money on them while still getting the same quality of service, it’s always worth a try. And, if your HOA feels that the complaints are justified, there are some ways to go about reducing them.Ĭan HOA fees decrease? Yes, and a step in the right direction is to take a look at your contractor budget.Ĭontractors and service providers are the biggest expense items in the budget of a typical HOA. If your board has started getting complaints about your fees increasing too much, it’s time to ask some questions. But, there are steps you can take to make sure they don’t get out of control. Also, it’s often likely that fees will increase over time, as costs go up every year. These fees go towards keeping the HOA supported. Fees will always be a part of a homeowners association.
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