Popular management consultant Peter Drucker famously stated “The best way to predict the future is to create it.” With that in mind, what future do you want for your association? Will there be sufficient cash to maintain “curb appeal” and maximize owner enjoyment,
So on what income does an association pay tax? This can get very complicated, but at the very least, the association generally needs to pay tax on its interest earnings. That includes ALL bank and investment interest, including interest earned on reserve accounts.
Today a well-intentioned Boardmember called, asking why he should tell his homeowners that the expensive roof they installed two years ago,
It is as important for our clients to have an accurate expectation of which components they will see in the Reserve Study as it is to expect
You expect your roof to last 20 years, but after 15 years you are having leaks everywhere. Your pool heater is a lemon and after three years you are convinced any more repairs would be a waste of money. Your last paint job is simply not cutting it. You need to spend Reserves earlier than planned. What do you do?
When there is a major component that we know will have some related expenditures but where predicting the size and timing of those expenditures are difficult, we often provide the association an “allowance”, meaning a sum of money every few years to handle estimated periodic expenses related to the component.
