Kuester Management Group Details Considerations for HOA Annual Budget Planning

CHARLOTTE, N.C. - Nov. 10, 2023 - PRLog -- For many HOAs, the end of the year means a new budget starts in January. Creating the budget is not a process that should be rushed through, as it has a major impact on HOA operations both now and in the future. Kuester Management Group has released a statement to the press regarding considerations to keep in mind when developing the budget and maintaining the association's financial stability.

"Start by reviewing the current year's budget to see where projections may have been off and what the actual income and expenses were," says Bryan Kuester, President of Kuester Management Group. "Historical data can guide planning so the board can better allocate funds to areas where they are most needed and cut back in spots where they may have come in under budget."

Pay attention to notices from vendors and service providers who may be increasing their rates, says Kuester. Go through contracts to see if there are opportunities to adjust services to lock in a lower rate or get quotes from other vendors to compare options.

Plan for any community enhancements or improvement projects as well. Make sure these costs are taken into consideration. Look at the reserve study to see if the board needs to be putting more money into this account to save up for anticipated repairs or replacements.

If expenses are exceeding income, raising annual dues may be necessary to reduce the risk of a special assessment. Be transparent with homeowners and let them know exactly why an increase is needed, how it will help the community, and what changes the board is making to better manage the association's finances and create greater stability.

"Work together with your HOA management company to gain their insight on where the board can make changes while still meeting the needs of the community," says Kuester. "They may recommend alternatives the board hadn't considered, provide strategies for auditing and tracking finances more effectively, and help maintain regulatory compliance."

Kuester Management Group works with HOAs in North and South Carolina to improve budget planning and administration, negotiate competitive contracts, and prepare for the future.

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Kuester Management Group, a division of Kuester Companies, works to protect property values and enhance the quality of life in each of its managed communities. Providing a full range of association management services, Kuester Management Group has worked to foster strong, resilient, and unified communities across North and South Carolina. The company is proud to offer on-site property managers, all zealous for building strong communities meant to stand the test of time. More information is available at www.kuester.com or @KuesterCompany.