The last thing an HOA wants to do is tell residents that they are subject to additional fees because there’s not enough funds to cover operational costs. While residents appreciate the amenities and perks of an HOA, they do not want to pay more in assessments each year because the budget can’t cover community expenses. Instead, HOA’s want to share that they have been able to stay on budget and even been able to shore up the reserve funds for unexpected repairs and maintenance. This requires continually assessing costs and looking for areas where additional money could be saved.
Here are some areas to consider when looking to save money for the communities you serve:
Manual processes may feel like the norm, but they can also be costing an HOA a pretty penny. The expenses associated with manual processes include labor, supplies, and equipment. In contrast, digitally transforming an HOA can drastically reduce those expenses. Here are some ways to migrate from paper to digital:
A side benefit from moving to digital is that staff can free up some of the time they spent on these manual processes and use it to build better community relationships.
Having vendors that can be counted on to do exceptional work in an HOA community is priceless. That’s why you don’t want to continually look for the lowest priced vendors to replace the ones already in place.
What an HOA or community management company can do is reach out to vendors and ask about any discounts or promotions that may help save the HOA money. For example, if you have multiple properties and have found a trusted vendor to replace those at other properties, perhaps they will provide a multi-property discount.
While it is easier to just pay and file, it is important to regularly look at utility bills to see if anything has changed in terms of usage and cost. In some parts of the country, HOAs can shop around for other electricity, gas, and/or water providers, so this may be an option to help save money. Another tactic is calling each utility provider to see if there are any promotions or discounts for HOAs or rebates for upgrading to more efficient utility equipment.
There are also ways to help a community reduce the amount of energy used:
A solar system for an HOA community can help provide significant savings over time. The solar solution can power all common areas of your community with a return on investment that can come as quickly as just a couple of years after installation. Rebates are still available in many parts of the country to also offset the initial investment.
It’s important to get many estimates and also seek out those solar companies that have experience with designing and installing solar systems for HOA communities.
Water is another costly area in an HOA community, but it is also one that can be easily addressed. Some of the best ways to do that include:
It’s better to regularly check all community equipment and other assets in case they need repairs or some type of maintenance instead of letting them go until they can no longer be used and must be replaced. Maintenance and repairs are far less costly than replacement on most items found in an HOA. Also, not taking care of certain equipment could result in other charges should a resident or vendor get injured.
Gaining access to valuable outside programs can directly benefit a community by helping the HOA tap into important products and services offered at a much more competitive rate. For example, Innovia Co-op members have exclusive access to a diverse range of industry-focused solutions designed to reduce expenses and generate new revenue year-over-year. Some of these solutions include software, financial services, equipment repair, community maintenance services, security equipment, office supplies, outsourced services, uniforms, compliance consulting, and many more!
If you are a community management company looking to help the neighborhoods you serve save money, contact us now to learn more about the benefits to becoming an Innovia Co-op member.