Proper HOA budgeting is important to keep the HOA operating smoothly. But problems may arise in HOAs that are self-managed, especially if they do not have a financial professional on the board.  Budget mistakes can result in severe conflicts between board members and residents. This makes it essential for HOA boards to get help and hire HOA management services. Below are budgeting mistakes that HOA boards can make when they self-manage their associations:

Not Taking Inflation Into Consideration When Planning

When an HOA is self-managed, board members can easily yield to homeowners’ demand of maintaining association fees. If this occurs, the board is usually forced to sideline maintenance and repairs because of a lack of budget. For homeowners, not increasing association fees is convenient. But the board should consider inflation and prioritize the community’s welfare, even if this means increasing HOA fees. 

Not Considering Unpaid Dues and Bad Credit

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