Blog
Blog
Why Community Associations Need To Consider Cyber Insurance
Condominium Associations, Homeowner Associations and Co-Ops are increasingly at risk of experiencing a Cyber event, leading to costly lawsuits, government fines, and data breach response costs. Associations may not realize the extent of their vulnerability when it comes to cyber crime. Just as with any other small to mid-sized business (SMB), associations can be the target of malware infections and other cyber threats. In fact, SMBs suffer 58% of malware infections, according to a recent report released from Verizon. Furthermore, not only are small businesses being hit by hackers, the attacks are costing them a lot of hard-earned cash. In 2017, average malware-related costs for small and medium-sized businesses included $1,027,053 due to damage or theft of IT assets, and $1,207,965 due to disruption to normal business operations. One of the reasons SMBs are so vulnerable is because they simply don’t have the same resources large corporations do for cyber
How Healthy Are Your Condo Reserves?
The maintenance-free lifestyle that condo living provides can be a huge benefit for its residents. And while condo owners do not need to worry about maintaining a yard or repairing a leaky roof, they are still responsible for the overall health of their community – financially, structurally and aesthetically. Association maintenance fees collected on a monthly basis are used to pay vendors and ensure a community is properly managed and maintained. Excess funds are set aside in a reserve account to cover emergency expenses, such as unexpected repairs or legal fees, as well as longer-term capital improvement projects like roof replacement, siding and masonry work, and major system upgrades. But determining how much money can and should go into a reserve fund – part of the annual operating budget prepared by a condo board – can be tricky. Since no two properties are alike, there is no magic formula for
4 Tips For Planning Next Year’s Condo Association Budget
The start of fall means the start of budget season for condominium associations across the country, and careful financial planning for the year ahead is one of a board’s biggest responsibilities during the calendar year. For those that haven’t started crunching numbers for 2019, now’s the time to get started. But where should they begin? Doing some research first will help streamline the process, allowing for a more accurate projection. Budgets are more than just an exercise in estimating annual expenses, they are a tool for measuring the financial health of a community’s association. It’s critical for boards to see how monthly assessments and reserves stack up against ongoing expenses. If a board does not have a handle on numbers, it can lead to surprise special assessments and potentially make it challenging for existing owners to sell. Minimizing unexpected expenses and controlling operating costs helps to preserve not just the
8 Easy Ways to Stay Stress-Free During Budget Season
This time of year can add extra pressure to anyone’s day, whether you are a property manager or a board member. Besides being there to lend a helping hand, we hope these helpful tips for relieving stress will help you breeze through budget season! 1. Try an Inversion The “legs up the wall” pose is one of our faces when we need to unwind: “Legs up the Wall” pose is a favorite of yoga instructors when they need to unwind. Of course, if you have any medical issues, we advise that you consult your doctor before attempting an inversion pose. So, how do you do the pose? Find an empty wall and lie on your back. Stretch your legs straight in the air. Scooch toward wall and rest legs on the wall. Rest with legs on wall for 5 minutes. This pose is really good for digestion too. 2. Nibble
A Budget Season Planning Guide for Condominium and Homeowners’ Associations
Article Provided By Jeffrey L. Ducker CPA, CGMA of MBAF KWPMC Certified Vendor As community association managers, board members and unit owners are aware, condominium and homeowners’ associations (HOAs) are required by Florida Statutes (FS) and, generally, by the association’s by-laws, to prepare annual budgets. The annual budget requires considerable effort and is, in essence, a financial plan for the upcoming year. The budget is the benchmark by which an association’s results of operations are measured. If actual expenses approximate those budgeted, it is perceived that the budget was well thought-out and the financial management of the association was effective. If, on the other hand, there are substantial variances between the budgeted and actual expenses, this may suggest that the budget was poorly prepared and/or the association’s operations were poorly monitored. Who Is Responsible for Preparing the Budget? The requirements for the preparation of the annual budget for condominium associations