HOA expenses can take many different forms and come from everywhere. The small things can soon add up, it can quickly become every board member’s nightmare. What no-one wants is the budget to be off and the expenses to exceed the amount brought in by HOA fees. In order to make ends meet the board can decide to impose a special assessment. But paying more money is guaranteed to anger all residents and make the board and property manager very unpopular. The best option is for the HOA to create extra revenue without burdening the homeowners with extra costs.

Rent and amenities

Does your HOA have an amenity it could rent? This could be an event room, a clubhouse, or a pool and pool house. These spaces can be rented for events such as birthday parties, business meetings, fundraisers and even weddings! Chances are that your association has been working hard to keep these amenities looking perfect. You can make that into more cashflow for the community! 

You could advertise these spaces on your HOA website and newsletter. The board could offer a discount for residents or friends and family. 

Use the space you have

Look around your community, and try to think of ways you could use the space to make some money. Maybe you have a lake or river that can be used for kayaking or fishing, then you could rent out kayaks. Is there a big enough space to build a community garden? You may have an unused space that could be turned into a soccer field. Possibly a local team could practice there sometimes or could pay a fee to use it for matches occasionally.  Always make the most out of the space you have.   

Maybe you don’t have such large unused spaces, but you may have an empty building, or a parking area or sheds. Once you’ve identified somewhere, think about how your HOA could use it. Think outside-the-box and be creative, there are no limits!

You can transform an empty lot into guests parking, the empty buildings could become storage units that can be rented to anyone inside the community. 

Advertise, advertise, advertise! 

Your condo’s website and its newsletter can also be turned into a money-making machine. Try reaching out to local businesses and offer some space for them to advertise their business and to offer discounts to your residents. Always tailor the adverts to be useful for your residents. The bigger your community is, the more attractive the advertising spot will be for their business, and the more they’ll be willing to offer discounts or coupons. It may not be a huge cash cow, but a small, regular amount can turn into big savings over time! 

Allow telecommunication hardware to be installed

There’s a chance, depending on the location of the HOA, that a telecommunication company could ask to rent an area of land for some hardware to be installed in. This could include a cellular tower. Even though this might produce a significant, fixed flow of money, there are some disadvantages to look at. These include the potential loss of community aesthetics, remember that we’re talking about a BIG cellular tower, that may have an effect on the property value. Your residents may have health-related concerns about it being so close to their homes. Some homeowners may be wary of the potential radiation it could emit, for instance. 

This is an important decision for the whole community to make. It could be turned into a survey question for the entire HOA, a survey that can be easily made using Neigbrs by Vinteum! 

Community is key 

The board of directors can take initiative and plan some events to collect money throughout the year. Board members can use events to create a feeling of belonging in the community and encouraging everyone to help and participate. The fundraising could come from raffles, games, competitions, selling homemade food, face painting, and sports matches. 

These fundraising events can become part of your community’s traditions. They create connections between the board and residents, creating a feeling of community. The better planned they are, the more income they will produce and the residents will be interested in participating in the next party you organize. It may even entice them into joining the board! 

Conclusion to how your HOA can make extra money 

Over time, all these different ways for an HOA to generate income can add up to a nice amount, and they make the difference between a stressful assessment and a happy association.  The HOA must be transparent and careful with the management of all income, and if it’s not immediately needed, then it should always be saved for emergencies and special projects in the future. 

Neigbrs by Vinteum will help you to improve communication and management in your HOA. Create your free account today!