It’s that time of year again — budget season for Condo Associations! If you’re a Board member or Property Manager, you know how important it is to get the budget right. The goal is always to maintain or improve the property while keeping costs down and building up reserves. But sometimes that can feel like a daunting task.
We’ve put together some tips to help you cut costs and increase your reserves without raising assessments. Read on for our top tips for budgeting success in 2023.
1. Review your current expenses and look for areas where you can cut back
The first step in creating your budget for the upcoming year is to take a close look at your current expenses. Are there any areas where you could cut back? For example, perhaps you’re paying for a service that you no longer need or you could switch to a less expensive vendor. It’s also a good idea to review your current contracts and see if there are any opportunities for renegotiation.
2. Make sure you’re getting the most out of your revenue sources
Your Association likely has several revenue sources, such as assessments, rental income, and interest on investments. Make sure you’re maximizing these income streams by conducting a regular review. Are your assessment rates competitive? Could you be earning more on your investments?
3. Plan ahead for large projects
If you know that you’ll be undertaking a large project in the upcoming year – such as a roof replacement or parking lot resurfacing – start planning and budgeting for it now. The sooner you start saving, the less impact the project will have on your day-to-day operations.
4. Take advantage of discounts and incentives
There are often discounts and incentives available for Associations that take steps to improve their energy efficiency or make other upgrades. See if there are any programs that your Association could take advantage of in the upcoming year.
5. Stay up-to-date on industry trends
Finally, it’s important to stay up-to-date on industry trends so that you can anticipate changes in the marketplace. This will help you make informed decisions about your budget and stay ahead of the curve.
By following these tips, you can set a budget for the upcoming year that will help your condo association save money and increase its reserves. If you need help in managing the operations of your building, reach out to us to request a proposal!