Where to Allocate HOA Fees to Improve Your Community
As part of a homeowner association (HOA) board of directors, you are tasked with collecting HOA assessment 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 way is to work with a Phoenix HOA property management services company and build a proper annual budget that allocates funds based on community needs.
On average, HOA fees may be a couple hundred dollars a 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
Security is always a high priority in communities. 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
- 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 as well as street sweeping. HOA fees also fund utilities, pest control, and landscaping.
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’ assessment statements and billing
- Calendars and schedules for events like HOA meetings
- Notifications for issues like lost pets and other community concerns
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.
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 or adding other amenities to 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. Many different kinds of amenities have 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 should have some amenities, 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 professional opinions based on proven track records and years of experience. To get started with City Property Management Company, contact us today to set up your consultation.