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June 25, 2019
Tips To Handle Community Residents At Risk
July 26, 2019
One of the most important fiduciary duties of association leadership and their manager is to properly prepare a comprehensive budget for their community.
All too often associations may put off this important task until the last minute. Nothing could be more detrimental to the financial health of a community. A poorly thought out community financial plan can have devastating results for the association and for the pockets of the owners as well.
It’s not uncommon for communities that don’t put in the time and necessary effort into planning to experience budget-busting “surprises” throughout the year leaving them no choice but to scramble to cover the expenses.
Here at Corner Property Management, we’ve developed a proven, three phase process ensuring our clients never go through that nightmare.
Our process starts with:
- Planning. One thing seen often is leadership not looking ahead and planning with a purpose. This includes reviewing the prior years activities and looking ahead to the upcoming year, anticipating any necessary or wanted improvements, capital costs and/or other expenses that may be needed.
- Monitoring / Reviewing. Throughout the year managers and leadership should be keeping a close eye on income and expenses, budgeted cost vs. actual cost variances and adjust as necessary for the upcoming year.
- Forecasting / Adjusting. No one is Nostradamus but you can look ahead and anticipate costs that may be needed: Capital improvements, painting, contract costs, insurance premium hikes, etc…).
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- Is the reserve fund up to snuff?
- What’s the plan for any operational contingencies?
- Have you anticipated revenue and the handling of bad debt?
- Do the maintenance costs need to be adjusted?
Frankly, this just scratches the surface.
That’s why for our clients, we begin this detailed process a minimum 90 days prior to the fiscal year end date. This gives our accounting department and managers enough time for proper thought, planning, adjusting and communication with community leaders to ensure that their budgets are on target for the coming year.
I invite you to find out how your community can benefit from our Financial Services and join the growing number of communities that are discovering how Corner Property Management is setting a whole new standard in the industry.
For more information regarding our financial Services contact Dave Vargas at 973-376-3925 or dave.vargas@cp-management.com.
Tony Nardone MBA, PCAM®
CEO – Corner Property Management
973-376-3925
Setting A Whole New Standard in HOA Property Management
