How to Budget HOA Repairs and Still Make the Common Spaces Safety Compliant
Overseeing all the properties within a homeowner’s association (HOA) is no small task. Not only is there a lot of ground to cover -- there are also countless considerations before making any adjustments, renovations, and repairs. Safety compliance is at the top of this list of priorities, of course. However, achieving the highest HOA standards can be challenging in the face of financial realities. Let’s explore how to budget your various HOA repairs and maintenance needs while still remaining completely safety compliant.
How to Budget for HOA Repairs
Break Down Needs and Goals
The first step to establishing any budget is determining what needs to get done and what you wish to accomplish if possible. These objectives can be broken down in many ways, by both task and time period. It’s often helpful to go month by month to develop a rough game plan for certain maintenance tasks and repairs. Prioritize any tasks that must be completed as soon as possible to ensure proper safety compliance and aesthetics (e.g., drywall repair, flooring, painting, utilities, etc.).
Determine Repair and Maintenance Costs
Once you’ve got a grip on what you wish to accomplish in the near future, it’s time to figure out what it all might cost. Finding these numbers is a matter of doing some online research and receiving estimates from various approved contractors. The total you end up with will merely be a rough approximation, but enough to give you an idea of what you may need to dish out to make all the repairs and improvements necessary to retain safety compliance.
Look to the Past to Plan for the Future
Regardless of the estimated costs in front of you, they must fit into a reasonable budget as determined by your HOA fees and other sources of income. If you’re not completely sure of what this budget might be, take a look at past budgets for guidance. Odds are the money you bring in this year will resemble the amount you brought in previous years. As you peruse past budgets, you might notice certain trends, such as undershooting the real cost of maintenance and repairs. If this is the case, you’ll need to set some more money aside for these tasks.
Choose the Right Contractor(s) for the Job
At this point, you should have a clear sense of your objectives, estimated costs, and estimated budget. Now, it’s time to hire contractors that can not only meet your financial needs but also provide quality services that keep your HOA’s common spaces safe and compliant. If possible, it’s often best to hire a single contractor to handle a wide variety of repair and maintenance tasks -- doing so will make it much easier to set a schedule while also saving you time and money. Of course, certain specialized tasks (like popcorn ceiling removal) might not be in a particular contractor’s wheelhouse, meaning you’ll need to find someone else. At Anderson Painting, we perform a wide range of repairs and renovations, including interior/exterior painting, ceiling restorations, siding and trim repair, concrete floor coatings, and more.
Seek Approval from the Town or State
All HOA residents must sign and abide by a document known as Covenants, Conditions, and Restrictions (CC&Rs), which spells out their various responsibilities and rules they must follow when making alterations to their homes. Similarly, HOAs must adhere to specific laws and regulations created by governmental entities (i.e., town, state, municipality). In many cases, HOA budgets must be ratified (that is, approved) by the association’s residents, as they are the ones paying into the HOA. Make sure you’re aware of the HOA budget ratification laws in your region to remain compliant.
Keep Residents in the Loop
Finally, it’s important to keep your association's homeowners informed of what’s going on. The budget ratification process is one way of establishing this communication, but it’s important to retain transparency beyond this. For instance, notify your residents when something like interior painting is going to take place -- this way, they can steer clear of any common spaces being renovated and not feel left in the dark. Likewise, your state might require you to issue yearly budget reports to homeowners so they’re aware of where their money is going and why.
Maintaining a Safe and Fiscally Responsible HOA
In a perfect world, no expense would be spared in the pursuit of caring for your HOA properties. In reality, though, some budgeting is required to keep your HOA safety compliant, your residents happy, and your balance sheet in good standing. The Raleigh painting professionals at Anderson Painting have plenty of experience dealing with HOAs and their various challenges. To learn more about us and all we do, call today at 919-610-1855 or email us at email@example.com!