Most of us pay our HOA (Home Owners Association) dues monthly without question. However with a little investigation and possible participation, our Chicago gay realtor suggests you may just become the residents’ new best friend, by actually lowering the dues.
HOA fees greatly influence decisions on whether to buy or not buy a specific condo, since the dues come straight from the buyers pocket and influence the amount of money they can potentially spend on the mortgage itself. HOA dues can be problematic for sellers as well making your unit unaffordable and in most cases and difficult if you want to sell your property.
The HOA board is made up of volunteers (condo owners) who have their life just like you. Even with good intentions the typical day-to-day problems, concerns and considerations make it difficult to focus much attention on ways to reduce the monthly HOA dues.
The association budget is similar to any budget, and hence there are ways you can minimize the expenses. Below are some of the ways to positively influence your HOA dues.
1. Inquire to Review The HOA budget
Make sure you review the HOA budget as the condo owner and ask for any questions related to it.
2. Become Part of The HOA board
By being a board member, you will have the unbiased opportunity to know everything that goes around the HOA’s finances- They could be contracts etc., and you’ll have a direct opportunity to guide the direction of the association, vs. sitting on the sidelines.
3. Review the HOA’s contracts
By reviewing contracts (elevator, security, landscaping, maintenance, etc.) you will understand the agreements involved with the different vendors. You will see contracts that might have been agreed upon years ago and may be worth renegotiating, or putting out to bid, to receive more favorable terms for the HOA.
Other things you can look into:
- Analyze insurance premiums
- Cut or delay unnecessary “new/pending”projects and non-essential maintenance.
- If possible, reduce reserves.
It’s not that difficult
HOA’s normally are dying for quality candidates to participate on the board, and for homeowners to show up at monthly and especially annual meetings. Keep in mind, even as a board member you are required to following the by-laws of the association, your suggestions might have to undergo some formal voting by the board members and in some cases it will involve the whole association (every owner) before they are implemented.
Have a conversation with the HOA president or board members and inform them about your desire and or your agenda. Let them know that your goal, is to lowering the association’s cost to benefit everyone!
Author Jeff Hammerberg is a gay realtor and Founding CEO of GayRealEstate.com ~ Offering Free Instant Access to the Nation’s Top Gay, Lesbian and Gay Friendly Realtors Coast to Coast. Free Buyers Representation ~ Free Relocation Kit to any City, USA ~ Free Sellers Market Analysis for home sellers.