Board members of a homeowners association (HOA) manage reserve funds, which are meant to address unexpected expenses such as emergency repairs. Proper management of a reserve is a must, both to ensure issues can be properly remedied and prevent allegations of misuse or mishandling of funds. Here’s a closer look at how to handle your HOA’s reserve.
How to Successfully Manage HOA Funds
1. Spend Wisely When Necessary
Much like when a person needs repairs performed at their home, you should also be careful when seeking out a contractor to perform repairs within an HOA community. You want to rest assured that a repair option is in line with your budget, but you also want to be cautious about choosing an option based on low price alone. Weigh the quality of work against price when shopping around.
2. Have a New Reserve Study Performed
Reserve studies provide information on expenses such as possible repair needs as well as the fund’s status. They should be conducted on a regular basis so you can stay one step ahead of any potential issues. For example, if you discover that quite a few areas of sidewalk are or will be in need of repair, you want to ensure your funds are up to par.
3. Look for Investment Possibilities
Investments are a great way to increase funds to ensure costs can be easily covered. Diversified funds are best and should include both long-term and short-term options. Look for investment options that are relatively low-risk so you won’t end up losing funds to questionable choices.
Many homeowners associations need assistance with operational procedures to ensure best practices. In Longwood, FL, HMI provides comprehensive HOA management assistance that addresses financial matters as well as daily operations. They offer many different service packages, enabling HOAs large and small to secure cost-effective help, and because the staff is highly trained and certified, they can address the most complex situations. They also offer property management for offices and residential condominiums in the Tri-County area. See the full listing of services online or call (407) 628-1086 to schedule a consultation today.