16 Aug 2016

Creating an HOA Budget

Posted by Orlando HOA Services

This is the number one tip in creating an HOA Budget: Actually doing a budget! This may seem silly, but many associations fail to create a budget before proceeding to the next year. Be aware of when your HOA’s fiscal year starts. Most HOAs start their fiscal year in January, but some HOAs start in strange months (like August). If you don’t have an annual budget, you will find yourself in a mess about halfway through the year when you realize you don’t have enough funds to last the rest of the way.


Your HOA budget is also a required legal document. According to current Davis-Stirling law, you have to disclose all of your HOA’s financial documents prior to sale of your home. If you don’t have a budget, you can’t disclose it and you will have difficulty selling.


Here is another related tip: Do your reserve study! Reserve Study is another budget planning tool for reserve funds to help your HOA be financially stable for those major common area expenses such as roofing, resurfacing roadways, etc.


Having an annual budget and reserve study is important for your HOA’s financial health. If you have some thoughts and questions, go ahead and comment! Do you need an expert? Orlando HOA Services can help you set up good financial practices that will keep your association financially strong well into the future. Email us at JR@Orlando-HOA.com or check out our website at www.Orlando-HOA.com!


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