Many HOAs have issues covering their operational expenses and as a result, end up charging homeowners with additional fees. In the interest of maintaining resident morale, association boards need to look carefully at their budget. You need to look for ways to reduce costs in HOA, while still providing exceptional service to the community. If you’re in need of some ideas, here are effective solutions so that your HOA saves money.
Saving money may seem like a major undertaking — especially for bigger HOA communities. But what many associations do not realize is that it is the small things that can really help cut down costs. Actions like turning off the lights when a room us unoccupied or adjusting the room temperature — as long as you are consistent about it— saves HOA money in the long run. If you are interested in this effective saving strategy, consider the tips below:
Depending on where your HOA is located, it may be possible to shop around for electricity providers. Consult each company to see whether your HOA is eligible to receive promotions or discounts. By doing so, you will be positioning your HOA to save a great deal of money on each electric bill.
Regardless of which electric company you are using, there are always ways 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 the amount of energy that you are using. If you are cautious with your power usage, you can greatly reduce HOA expenses.
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 schedule because it will enable you to cut costs in HOA water bills each month. Also, it will help you reduce the amount of water wasted that could be used for other purposes.
Rain gauges are another way to reduce the HOA’s water bills each month. Rain gauges are inexpensive and allow your HOA to save water. The water collected can be used for irrigation systems so you won’t have to spend additional capital on water. If you already have a rain gauge, make sure it is not clogged so that you can benefit fully from its installation.
If you are seeing high water bills each month, it could be caused by running toilets and sinks as well as leaky pipes. These issues can waste up to hundreds of gallons of water per day. Have your maintenance company perform routine checks to see if your plumbing fixtures are working properly. You can also check your meters to see if there are discrepancies between your water usage and the amount you are being charged each month. Addressing these issues can substantially cut down costs in your HOA.
There are many types of equipment that do not have to run continuously. Make a checklist of equipment in common areas that you have plugged in and when they need to be plugged in. By turning them off during non-essential periods, you can reduce the amount of electricity they use, which also greatly reduces your electric bill. Even with this small adjustment, it is possible to make a substantial difference in the monthly expenses of your HOA.
In times of 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, set them at one consistent temperature so that they use less energy. Evaluate which months of the year your community needs heating and air conditioning so that you can adjust your budget accordingly.
Over time, your HOA will establish relationships with outside vendors that provide essential services to your community. Make sure to check in with them from time to time. Sometimes, they may offer special promotional pricing for their services. See if you can apply these discounts to help cut costs in HOA expenses. Having a more practical approach when negotiating with vendors can help the HOA save a substantial amount of money on essential services.
Another great way to cut costs in your HOA budget is to invest in solar power technologies. 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 companies have the most affordable pricing. You should also seek out reviews from previous clients to see if they offer great customer service. Ideally, service providers that have worked with HOAs before will be the best fit for customizing a solution that meets your community’s needs.
Paper may not seem like a huge expense but considering how much the HOA uses each month, the costs still add up. Though paper may have been essential in the past, the advent of technologies now enables us to conduct business digitally or online. Rather than mailing out newsletters, announcements, and other community paraphernalia, you can send them via email or text.
You can also create an online portal where homeowners can receive e-statements, pay their dues online, and access HOA documents. Your HOA may even consider offering online support for paperless communications with its homeowners. By combining all these paperless strategies, you will be able to save money in HOA purchases each month. You won’t have to allot that much on office supplies and other related expenses.
By incorporating these 10 simple but effective solutions, your HOA will be able to cut down on operational expenses each month. If you are able to meet your budget each month, there is no longer any need to raise HOA fees or levy a special assessment. As a result, homeowners will be happy with their community management.
Investing in solar-powered and energy-efficient technologies will also go a long way in preparing your community for the future. As long as you stay practical and reasonable, you will keep finding ways your HOA saves money to keep homeowners happy.