What if your HOA is "Over-Reserving" for future expenses?

When it comes to reserve fund planning there are a lot of interesting rule of thumb approaches many of us have heard over the years. “Set aside an amount equal to 10% of the annual operating budget”, “Do a special assessment of $100K to add a reserve buffer”, are just a few of the less than analytical approaches to reserve fund planning out there.

Generally, what these approaches say is that “we really have no idea what level we should be funding reserves at.” Better to over fund than under fund reserves goes the thinking.

All well and good except that this kind of thinking might be costing you money and diminishing the value of your important real estate asset.

Eliminating rule of thumb reserve fund planning really doesn’t need to be that hard. We specifically built HealthyReservesusing Microsoft Excel™ as the underlying platform because most people associated with an HOA already know how to use it.

Get started today using HealthyReservesand get an entirely new view on the health of your HOA's reserves.

Related posts