What is an HOA operating budget?
An HOA operating budget is the annual financial plan covering the community’s day-to-day operating costs, landscaping, insurance premiums, utilities, maintenance, and management fees, usually prepared by the board or a management company.
Why does an HOA operating budget matter?
This is distinct from the reserve budget, and confusing the two is a common mistake that leaves communities under-saving for big future repairs while overspending on routine costs, or the other way around.
When You’ll Run Into This
This gets built once a year during budget season, and it’s worth reviewing against actual spending regularly rather than only revisiting it the following year. Our guide to preparing a successful HOA budget in 5 simple steps covers how to build one that holds up.
