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How to Lower Fees in Your HOA

Fees will always be a part of a homeowners association, as they are required to keep the HOA supported. And while it’s often likely that fees will increase over time, there are steps you can take to make sure they don’t get out of control. So if your board has started getting complaints about your fees increasing too much and they feel the complaints are justified, here are some ways to go about reducing them:

How Much are You Paying Contractors?

Sometimes you’ll have contracts going on that were set up years before, and the contractors might have increased their rates each year. Check in to see if any of them have gotten too high and determine whether or not you need to re-negotiate with them or look for someone new. If that’s not possible, consider reducing the amount of times the service is provided.

What’s Included in Your Budget?

Have your board read over your association budget to look for areas that might be unnecessary. Are there areas where money is being spent on things that aren’t needed? Do you have insurance premiums that are too high? Take some time to analyze the budget areas and brainstorm ways to lighten it up.

How do Your Reserves Look?

HOA reserves are a crucially area of HOA management. You need a good reserve to make sure you’re prepared for repairs and unexpected instances. However, sometimes the HOA reserves can actually build up if you don’t need to use them for a while. If there’s a lot of funds in your reserves, you might consider lowering fees that go towards it each month.

Looking at each of these areas gives your board a good sense of where you are and what can be changed. Even if you struggle to find big ways to cut fees, you can at least know that they are justified and contributing to the right places for your HOA.

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