Homeowners associations or HOAs collect fees from its members to have funds for its operations. But regardless of the size of the HOA and the total amount of fees collected each month, there will be occasions when the association will fall short on funds, especially funds for unforeseen and unplanned expenses. So how can your HOA save money? So Cal Enterprises shares some tips:
Conserve energy
The bulk of expenses for HOAs goes to utility bills, which are primarily electricity and water bills. Here are ways to conserve energy:
1. Turn off and unplug equipment
Even if you’re not using a piece of equipment, it is still using up power by simply being plugged in. Make a checklist of all the equipment in common areas and evaluate their usage. You can create a schedule for usage of specific equipment, too, so they all don’t need to be simultaneously plugged in.
2. Discuss energy conservation programs and options with your provider
If you haven’t yet asked your energy provider about their conservation programs and options, now’s the time to do. The government usually gives incentives or credits to energy providers that help conserve energy, which means there’s a good chance that your provider has one or several. If they don’t, find out if you can switch providers. If you can, shop around for one in your area that has such credits or incentives.
Another huge expense for HOAs is its water bill. Here, you have several ways to conserve water:
3. Schedule your sprinkler system
There is a common misconception about sprinklers: that if you set them to automatically turn on and water the lawn for short periods at small intervals several times per week, you’ll be saving more. Truth is, the more often you turn on the sprinkler system, the more water it uses up even if you did set it to work only for short periods at a time. The more cost-efficient system would be to turn it on fewer times fewer week but working for longer intervals.
4. Utilize a rain gauge
If you haven’t installed a rain gauge, it’s high time that you do. Rain gauges save water that you can be used for the HOA’s irrigation system. Utilizing these water conservation gadgets can significantly cut your water usage.
Re-evaluate service contracts
5. Update your contract with vendors
If your HOA has been around for a good number of years, you may have forged a good working relationship with select vendors. Check your current contract with each one and discuss new terms you can both agree on that can help you save on professional fees and supply costs.
These money saving tips can help you get started on your campaign to lower your HOA expenses for a more efficient HOA management and operations.