January 17, 2019Summary: HOA Community Managers will learn how to make additional income for their HOAs.
Highlights:
How can you avoid special assessments?
What are some ways HOA’s can increase their balance sheet without increasing HOA dues?
How can HOA community managers make community members happy while also increasing profits?
Nothing is worse than sending out an email to your HOA community to tell them that a special assessment is coming.
Soon enough, your inbox gets filled with hate email about gouging. It would be nice if you didn’t have to hit send on that email. Does that roof need replaced soon, but you don’t want to have to request a special assessment?
Look for new ways to make money.
Below are the top four ways homeowner associations can make extra money and avoid special assessments.
1) Renting Out Unused Areas
The first way to make extra money for your association is to rent out unused spaces. Do you have vacant storage space or parking spaces? Perhaps a community member has an extra car they would like to park or a hobby that takes up space. They may be willing to pay a monthly fee to not have to find street parking or take up valuable space in their homes.
The club house is another valuable asset that can be rented out. If it isn’t in use, rent it out to teachers for classes or community members for their own events.
2) Advertisements
Do you have regular communication with your community members via newsletters, a website portal, or email? Get extra income for the association by seeking out advertisers. Allow local businesses to advertise to your community members. You can even charge more for a native advertisement, like a branded HVAC maintenance article distributed to your members.
3) Offer Extra Services
Your HOA probably offers lawn maintenance and snow removal, but what about some outside the box ideas for an additional fee?
Pet Services
Pet services like bringing in a pet grooming truck for residents with pets (taking a cut of the profits), dog walking services, or building a dog park on-site can bring in extra income.
Home Services
Offering maid service and home maintenance like filter changes and HVAC tune-ups will increase HOA income. You can either task a current employee to do these tasks or hire a contractor to do them. Get a group discount from the contractor and charge full price to residents, so the HOA can pull in some extra cash from the efforts of arranging the services.
Personal Services
HOA’s can charge a premium for tasks like dry cleaning, fluff and fold, or babysitting. The tasks can be outsourced to qualified contractors with a mark-up for coordination services for the HOA.
Convenience and time saving is something busy professionals will pay extra for. If homeowners can come home to their laundry done, home well-maintained, and their pet happy – they will be happy. The population that chooses the convenience of living in an HOA community would also appreciate extra services.
4) Vending Machine
Are you an HOA community manager for a property that has laundry facilities? Add a vending machine in the area. The vending machine should have detergent, fabric softener, and personal items like toothpaste, soup, and other items people might need on demand, but don’t want to leave to shop for them. Price items at a premium for convenience and enjoy the profits.
In Conclusion
Provide convenience and bring in extra income to your HOA by thinking outside the normal business model. Your community members will be happier, and you just might be able to avoid sending the dreaded special assessment letter.