Does your association have a budget? If it does, how is it prepared? Is it even followed? Here, we provide tips for creating a budget process that works well for nearly all associations.
Know fundamentals first
Start your budget process by understanding why budgeting is important. Aside from the obvious benefit of creating a well-run association, having a solid budgeting process helps protect the value and marketability of your association’s units. Without it, lenders may be unwilling to lend for the purchase of a unit or to the association, and buyers may feel burdened and walk away because they don’t want to assume the fallout of bad decision-making in prior years.