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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
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 are set forth in Section 718.112 (2) (f) FS; and for homeowners’ associations,
Is a Budget Committee Allowed to Meet Privately?
Q: Our condominium association adopted the 2019 budget last week and it was a total shock to everyone in the room. The board claims it was the first time they had seen the proposed budget and there were multiple increases. The board kept saying they were following the committee’s recommendation and adopted the budget. What committee is this? How can this be done in secret? A: The budget “season” is one of the most important times of the year for a condominium. Every condominium association approaches the budget differently. Some rely on management to prepare the budget. Some have a treasurer that oversees the drafting process. Some have a committee of owners prepare and recommend the budget to the board. In this last situation, which appears to mirror the operation of your condominium, a committee makes recommendations to the board. This is often referred to as the “budget committee” or
Everything Your Association Needs to Know About the “Florida Condo Website Law”
By January 1st, 2019 a condominium association with 150 or more units is required to post digital copies of official records on an association website or a web portal wholly owned and operated by the association or a website or web portal operated by a third-party provider. Currently an association with less than 150 units is not required to comply with the new statute; however, it is possible for this to change at any time. So what do you need to know? Website Ownership and Content Management Considerations First, associations that already have a website provided by their management company, should review the agreement to confirm whether or not that website is owned by the association or by the management company. In the case of KWPMC clients, the websites we provide our associations with will be compliant long before the deadline and the Association will always own the content of
