Tips For Creating a HOA Budget

Tips on how to create a basic budget for your HOA.

Updated over a week ago

Having a budget can help your HOA plan how much they will be able to spend in a given year, which is largely determined by how much revenue comes inHOAs typically create a budget prior to the start of each new fiscal year, and for many HOAs creating a budget is actually a requirement. Budgets should to include your HOA’s expected revenues, expected expenses, and the desired reserve allocation.

Step One: Confirm your HOA's Expected Revenues

Determine the amount of revenue that will be collected. Most HOAs collect most of their revenues in the form of membership assessments. However, other sources of income can include bank interest, late fees, parking passes, pool keys, clubhouse rentals, etc.

Step Two: Confirm your HOA's Expected Expenses

Review your HOA’s anticipated operating expenses for the fiscal year. Different HOAs have different operating needs depending on the various expenses involved. Common expenses include landscaping maintenance, utility bills, and savings for long term capital projects such as re-paving streets.

Did this answer your question?