Navigating the 2024 Budget Season: Tips for Florida Associations
By Tanya Amo | Oct 24, 2023 | KOVA Property Management
Association annual budget planning season is upon us. KOVA Property Management understands the urgency and complexity that associations are facing when creating their budgets. After the challenges of 2022, including hurricane damage repairs, insurance increases, and special assessments, many associations have unanticipated expenses. It is crucial each association meticulously plan to ensure financial stability and sustainable growth. Below are seven fundamental tips associations should review as they embark on their budgeting process.
Review Past Performance
Take a close look at your association’s financial performance in 2023. Assess the actual expenses against the budgeted figures. Understanding these variances helps in setting more accurate projections for the upcoming year.
Anticipate Future Expenses
Based on historical data and current trends, anticipate the costs your association may incur in 2024. Include regular maintenance, insurance premiums, utility bills, repairs, and any upcoming projects.
Consider Reserve Fund Contributions
Ensure your association’s reserve fund is adequately funded. Plan for contributions that align with future repair and replacement needs to maintain the property’s integrity.
Assess Legal and Compliance Obligations
Stay updated on legal and compliance requirements that may impact your association’s finances. Allocate funds for legal consultations and any necessary adjustments to remain compliant.
Invest in Technology and Innovation
Consider leveraging technology to streamline operations and improve efficiency. Budget for property management software and other tech solutions that enhance service delivery and owner/tenant satisfaction.
Prioritize Sustainability Initiatives
Allocate resources for sustainable and energy-efficient initiatives. Investing in green technologies not only benefits the environment but can lead to long-term cost savings for the association.
Maintain open and transparent communication with owners throughout the budgeting process. Seek input, address concerns, and ensure everyone is aligned with the financial goals and allocations.