As part of an HOA board of directors, you are tasked with collecting HOA fees from community residents and allocating them to services as needed. It’s not always easy to determine where to allocate these funds. One great way to determine how to allocate HOA fees is to ask the community for feedback. Another is to work with a Phoenix HOA property management services company.
On average, HOA fees may be between $200 and $400 per month, but they can be higher or lower, depending on the needs of the HOA and the services you provide. Here are a few common ways HOAs allocate the money they collect through these regular fees:
Effective Community Security
Every community needs security. HOA fees can cover security measures like:
- Security cameras;
- A fence and gateways for the community;
- The presence of private security guards in common areas; and
- Regular maintenance checks and updates
All of these measures, which lead to better security, require funding, making security budget allocation a top priority for most HOAs.
Another important way HOA fees are used is to provide residents with services like trash and recycling pickup. HOA fees also fund utilities and, when necessary, pest control for common areas.
A Secure Resident Portal
A resident portal is an online portal and database where residents can easily access relevant documents and information. The types of information you can provide access to through the portal include:
- Status updates on residents’ maintenance requests;
- Residents’ bills;
- Calendars and schedules for events like HOA meetings;
- Notifications for issues like lost pets and other community concerns; and
- A secure, easy way for residents and board members to cast votes remotely.
You can purchase this type of software or you can have a portal custom-built for your community. City Property Management provides all of its managed HOAs with such an app and online access to pay bills and to keep residents informed of current updates.
A Well-Funded HOA Reserve
An HOA reserve is the money reserved for large-scale expenses. Every month, a significant portion of HOA fees collected should be allocated to the HOA reserve so it remains sufficiently funded. HOA reserve-funded projects include sidewalk replacement, construction of new common buildings, and major repairs like infrastructure replacements.
A Pool and Recreation Area
If you have a large enough budget and are collecting enough fees from residents to fund the necessities, you may also want to consider building a swimming pool in your community. Not only will a pool make the summer heat more bearable, but it acts as a selling point for potential buyers whenever a house in your HOA goes up on the market, keeping residents in the homes of your HOA. A pool has the potential to be a gathering place where the community can get to know each other better and build new relationships.
Get More HOA Management Ideas from a Phoenix HOA Management Firm
The best way to allocate your community’s HOA fees depends on your community’s specific needs. Every community needs security, and every community needs an HOA reserve, but beyond these needs, the right way to allocate your funds is highly dependent on what you can afford, what you already have, and what you’re lacking. Work with an HOA services company to make these determinations. To get started with City Property Management Company, contact us today to set up your consultation.