07 Aug The Budget Starts Here
An association budget can be just a few lines or several pages of accounts and project notes. If you don’t have an accounting degree, how do you know if the needs of the community are being met?
If you’re living in a condo, co-op, townhome or high rise, building maintenance will definitely be some of the high dollar categories on the budget.
- Check the monthly operating expenses for routine maintenance on elevators and lighting.
- Is there a building engineer that manages the project punch list for paint, tile replacement and exterior glass cleaning?
- In the long-term budget (the reserves) is there money being saved for roof repairs and sidewalk leveling?
Square footage and location aren’t the only things that factor into the decision to rent or buy a home. Accessibility to a pool, playground or R.V. parking can be just as important as the duration of the commute.
- Does the operating budget include a pool company contract AND a separate line item for pump repairs?
- V. parking means there’s asphalt or concrete that will need routine cleaning or sealing.
General business protections
As a homeowner in an association you’re part of a what could easily be a million dollar business. This means standard business expenses will apply.
- Is the association adequately insured including insurance required for unique characteristics such as walking paths or equestrian facilities?
- Are there line items for the annual Secretary of State filing and/or Real Estate Division certifications?
Whether it’s an entry gate or assigned parking, if you focus on the things you use every day in the community, you’ll be able to tell if the budget is addressing the general need of the homeowners. It’s a simple way to participate with your board in the annual budget process.