How to Present HOA Fee Increases to Owners in New Jersey

A sharp rise in NJ inflation rates have community associations scrambling. Many wonder if rising costs mean an increase in dues? HOA Fee Increases in New Jersey aren’t always a popular decision. Still, with clear communication, you can approach the process in a positive light. The key is transparency and communication. Residents want to maintain their standard of living, so they’ll be more understanding when they know how the increase benefits them.

FAQ: Why do HOA dues increase? 

The cost of living goes up yearly, so HOAs must plan accordingly. For example, you may have increases in utilities, insurance, and taxes. Therefore, it’s best practice for dues to marginally grow with the cost of living. Of course, there are other reasons for rising fees as well.

• Inflation
• Price of supplies 
• Building repairs
• Low reserves 
• Salary increases
• Expanding community

Benefits of Increased HOA Dues

Most residents understand that fees go to taking care of their needs. HOA dues cover many things from property maintenance to community activities. But sometimes people take amenities for granted. So, remind owners about everything fees do. For example, a well-maintained community is good for financial stability and property values. Likewise, higher dues allow for upgrades to keep up with the current standard of living. For example, you can install new features such as electric car charging.  

Managing Resident Expectations

Transitions go smoother when owners prepare in advance. So, notify residents as soon as possible to give them time to adjust. Likewise, you can get people accustomed to the idea with nominal annual increases. Small, incremental raises are much more palatable than an unexpected cost hike. Managing resident expectations takes clear communication from the board. 

Communication and Transparency

Board members, management, and residents need to understand the reasons behind the upswing. Everyone will have an easier time accepting changes that are communicated clearly and honestly. Always make the budget planning process transparent.  When voting to approve the budget in an open session, make sure that you explain the major line items that may have increased.  Keep in mind that transparency does not mean that you need owner approval.  Its a reminder to boards that they are required to share the reasoning for their decisions with the residents

Prepare for Complaints 

If residents approach the board with complaints, stay positive and empathetic. A dismissive or defensive attitude makes people even more irate. In addition, all board members should have the same talking points, so they give a consistent message to residents. Conflicting reasons only serve to frustrate residents. Remind people that the fee increases affect board members as well, so they make choices with careful consideration. Finally, encourage homeowners to look at the budget. It’s hard to argue with numbers. So, people tend to appreciate accurate and transparent finances.

HOA Fee Increases in New Jersey

As with most things, communication is the key to a successful HOA fee increase in New Jersey. An experienced property manager and staff accountant can explain the reasons clearly and concisely so that residents understand the benefits. Corner Property Management is here to help you develop and communicate a plan for raising dues. Give us a call at 973-376-3925.