Wrap up the year to set your homeowner association up for success. ‘Tis the season for doing things in groups of twelve. Think about the 12 days of Christmas, 12 family activities, Apple’s 12 days of gifts, etc. Here are our 12 HOA wrap-up tasks your Board should do by the end of the year.
Recruit volunteers. Wrapping up year-end is a lot of work. If you need help, recruit volunteers to help with some of the tasks.
Finalize your projects. Do you have all the invoices? Have vendors been notified and/or scheduled for necessary follow-ups? If portions of a project will continue in 2016, do you have projected costs to update your reserve budget?
Review rules and regulations. Year-end is an ideal time to review association rules. Modifications may be needed to bring them in line with changing local or federal laws. Are all rules working and being consistently enforced? Adjust as necessary.
Plan your reserves. Review your reserve study and establish a budget that funds your reserves accordingly. If you did not have a site visit or update this year, a cursory look may be all you need.
Finish financial reports. If your fiscal year winds down at year-end, you need to complete your financial reporting requirements. It’s the law.
Set goals for the new year. This is especially important for goals that require funding. Consider HOA communications and neighborhood social activities in addition to maintenance and updates.
Create an annual HOA calendar. Include Board meetings, community events, planned training, etc. Advance planning leads to better participation and attendance.
Confirm budgeted expenses. You need input from vendors on planned maintenance and updates. Don’t forget that utilities, insurance and other services may also have projected increases.
Evaluate HOA assessments. Maintaining status-quo on assessments won’t pay HOA bills and adequately maintain community property. Evaluate your expenses. Then, consider an increase to assessments as needed in order to keep pace with inflation and other rising community costs.
Review your budget. It’s a good idea to wrap up the year reviewing your annual expenses. Review past and future expenses as you close out the books.
Identify training needs. Individual HOA Board responsibilities may need tweaking as people go through different stages of life. Schedule training sessions early in the year to maintain your Board’s efficiencies and effectiveness.
Hire a property management company. If day-to-day HOA management and year-end wrap up is taking too much time, think about hiring a property management company. Many have processes that streamline year-end wrap up so your Board can concentrate on community and personal relationships.
When you and your Board accomplish these wrap-up tasks, you’re all set for the next year. Merry Christmas!
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Wise Property Solutions is East Tennessee’s only Accredited Association Management Company (AAMC®). As the region’s leader in community association management, the firm is committed to the industry’s best practices and continuing professional development. Wise Property Solutions’ certified and highly trained property managers empower well-organized and efficient communities. The firm maintains offices in both Knoxville and the Tri-Cities.