A well-funded budget and adequate reserves allow your association to handle maintenance issues head-on and to be prepared to replace common-area components when necessary. Boards frequently strive to minimize current expense budgets to keep membership dues as low as possible for current residents. This can lead to late payments to vendors or to using the services of the lowest bidder rather than the best service provider, leading to problems down the line.
A fiscally responsible approach is a fine line between accommodating residents’ pushbacks on funding projects they may not feel are necessary and implementing improvements that will facilitate positive future activity. It is important to include resident feedback early in the process and provide regular updates as the project moves forward. Whether it’s replacing carpeting in the hallways, upgrading common-area bathrooms, or replacing worn lobby furniture, the board of directors has a responsibility to move forward by properly funding these maintenance/upkeep projects.
Reserves are designed to set aside funds for the replacement of common areas. These areas can be structural, such as the roof, or potentially expensive projects that do not happen very often, such as repairing and raising the seawall and dock area. It is helpful to have professionals periodically inspect the common areas to identify potential issues and ensure the association’s maintenance requirements are met in a fiscally responsible way.
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