Understanding HOA Budgets: Basics, Tips, and Common Mistakes
Understanding HOA Budgets: Basics, Tips, and Common Mistakes A well-managed budget is critical to ensuring the long term financial stability of a community. A good budget not only ensures that the HOA can meet its responsibilities, but also lays the groundwork for maintaining property values and ensuring long term expenses are properly accounted for. We'll get into the basics of an HOA budget, share tips for creating one, and outline some common mistakes that HOA boards often make when creating their budget. What Is an HOA Budget? An HOA budget is a financial plan that outlines how the association will allocate its funds over a specific period, usually a fiscal year. It covers all projected income and expenses, ensuring that the association can effectively manage the community. The budget typically includes: Income : Funds collected from members through monthly dues, special assessments, or other sources like clubhouse rentals. Operating Expenses : Ro...