HOAs, regardless of their size, can have issues meeting all of their expenditures without charging residents additional fees. In the best interest of maintaining resident morale, HOAs need to look carefully at their budgeting plans to see where they can cut costs while still providing their residents with exceptional customer service. If you are considering how to cut costs within your HOA budget in the upcoming year, consider the information below:
Review Your Associations Electric Bill
Depending on where your HOA is located, it is possible to shop around for electric providers in some cases. If the geographic location of your HOA allows you to choose your electric provider, then it is wise to see what promotions or discounts your HOA is eligible to receive. By doing so, you will be positioning your HOA to save a great deal of money on each electric bill.
Implement a Power Saving Strategy
Regardless of which electric company you are using, there are always ways to consider a strategy to reduce the amount of electricity that you are wasting each month. If you consider when your community’s lights need to be turned on in common areas, for example, it will be possible for you to save on the amount of energy that you are using. If you are cautious, you can greatly reduce your overall expenses substantially.
Check and Adjust Your Community’s Sprinkler System
Sprinkler systems are notorious for increasing the costs of HOAs. It is a common misconception that the more often you water plants for small time intervals, the less the cost will be. It is less expensive to water plants fewer times per week for longer intervals. Make sure to set your sprinklers to this strategy because it will enable you to save a great deal of capital on your water bill each month. Also, it will help you reduce the amount of water wasted that could be used for other purposes.
Install a Rain Gauge and Ensure it Is Functioning Properly
Rain gauges are another way to reduce the cost of water that your HOA utilizes each month. Rain gauges are inexpensive and serve as a way to save water that can be used for irrigation systems without spending additional capital on water. If you have already installed a rain gauge, make sure it is not clogged so that you can benefit fully from its installation.
Make an Effort to Conserve Water
Your HOA should look at all areas it is using water to see how it can reduce the amount of water it is using each month. Another commonly missed expense is a toilet that is wasting water. A toilet can waste up to hundreds of gallons of water per day. Organizations such as Weathermatic have a system called their “Smart Water Program” where HOAs can save money and also give water to struggling communities worldwide. Raising awareness about this issue amongst your residents for water use in common areas can make a great difference and show residents that your HOA is making a positive difference in the environment in addition to saving capital on monthly expenditures that impact member dues.
Turn Off Non-Essential Equipment
There are many types of equipment that do not have to run continuously. Make a checklist in your community of what equipment you have plugged in and when that equipment needs to be plugged in. By doing so, you will reduce the amount of energy the electricity uses, which can greatly reduce your electric bill. Even with a small adjustment, it is possible to make a substantial difference in the monthly expenses of your HOA this way.
Do Not Over Utilize Heating & Air Conditioners
In the seasons that have extreme heat and cold, it can be tempting to run heating and air conditioners in common areas at all times. One great way to save money is to put these systems on timers so that they are not running continuously. Additionally, if you set them at one consistent temperature, it causes them to use less energy. Evaluate which months of the year your community needs heating and air conditioning, which will reduce how much you need to allocate to your HOA budget for their usage.
Periodically Evaluate Terms of Service Contracts with Outside Vendors
Over time your HOA will establish relationships with outside vendors for various services that need to be provided to the HOA. Sometimes, outside vendors can have special promotional pricing on services that your HOA needs. Be sure that you are always looking at their current pricing and how you can apply discounts to help your HOA save capital. By being more practical with how you negotiate with outside vendors, you will be able to save a substantial amount of money on services that you need to be completed for your community.
Consider Solar Power Solutions
Another great way to cut costs in your HOA budget is to invest in solar power solutions where you can. Even though there will be an up-front cost for installation, it will save your HOA capital in the long term. Be sure to price out several different options for your community so that you can see which vendors have the most affordable pricing but also have great service reviews from their prior satisfied clients. Ideally, service providers that have worked with HOAs before will be the best fit for customizing a solution to your community’s needs.
How HOAManagement.com Can Help
HOAManagement.com has a great deal of expertise in working with HOAs located all over the United States. Our team has the required technical skills to design a custom website tailored to your HOA’s particular needs.