Condominium and co-op boards in the United States dedicate time to creating a budget and making the necessary adjustments to keep actual expenses within allowable limits. Unfortunately, costs often end up exceeding projections. Even if no significant changes happen, money seems to be disappearing unknowingly—and these financial leaks make it harder to run cost-effective communities. With over 20 years of experience in property management, MyPropertyBlling.com provides tips to help you identify and address financial leaks.
Scrutinize Expense Line Items
You may be on a budget for some expenses, but you could be spending for unnecessary expenses. Examine your spending from an auditor’s perspective. Find out if you are getting the services you are paying for and if it gives you the best value for money in terms of service quality and price. Sometimes, bundled services can save you more money than two separate contracts. Look into these things on a year-to-year basis and when contracts expire.
Check Automated Payments and Billing
Automated systems are so popular that even businesses are using this service. While this convenient payment method, bills get paid without undergoing review or approval. At least annually, look into your accounts payable and recurring bills that are on autopay. If needed, dispute charges that should not be charged to you or renegotiate contracts are costing you extra.
Gives You More Time to Focus on Areas Receiving Less Attention
The co-op or condominium board needs to spend not only on property management but also on taxes and back-office support. Financial leaks persist not only because of fraud or willful negligence but due to inattention in some areas. Real estate taxes, supplies, service contracts, and professional service providers like attorneys, accountants, and engineers could be a source of financial leaks. Always review pricing and the contract terms.
Look Into Absorbed Costs
Some homeowners' associations are losing money because the HOA pays for expenses that unit owners should shoulder. While this issue is more common in high-rise buildings, it could happen anywhere. Check your governing documents to know the repairs and maintenance expenses that the association should cover.
Identifying the source of financial leaks is crucial in running communities properly. If needed, partner with professional teams to manage your HOA financials and other admin tasks. Whether you’re a property manager, a small management company, or a large association, MyPropertyBilling.com could provide robust online technologies to help you find and plug up financial leaks.