Establishing a reserve fund which has enough cash to cover condo community emergency needs is vital for the achievement of the complex. However there are often barriers to establishing this account, obstacles that are often put in place throughout the home buying process time when potential homeowners might be misinformed about the fact of appraisal fees and the value of using them to cover more than development and maintenance.
A condominium management services provider can help a community build an emergency fund, but it might need to challenge misconceptions that residents and board members have about how assessment fees should be used. If your community is fighting to come to terms with the necessity to construct a meaningful reserve fund, odds are that one or more of these obstacles are standing in the way, and have to be addressed before progress can be made. Prospective homeowners do not want to hear that appraisal costs may rise. Consequently, realtors may inform them that fees will stay stable. The further development a community experiences, the more cash it requires in reserve to sustain the development when unexpected expenses arise. Bearing this in mind, HOA management solutions can help board members create a source which correctly defines the financial obligations of living in the community.
Providers of a management services care community owners against making appraisal fees artificially low during the introductory advertising period. When the period ends, prices must frequently be increased to pay for regular services, and of course building an emergency fund. Low payments throughout the introductory advertising period may entice buyers, but it finally does them a disservice as members of their community. If evaluations are artificially low for a time period, prospective buyers must be aware of it. Building a reserve fund could be put back when board members are voted out, or the contract with an HOA management services provider is not renewed, in protest over elevated assessment fees. Electing new board members and picking a different Boulevard 88 Condo management services provider does not address the issue, though it merely forestalls the collection of cash that is needed to construct an acceptable emergency fund.