Just because your condo association or HOA is a non-profit doesn’t mean you need to run it like one. Here are some general business principals learned from the corporate world to apply to your condo association or HOA.
Condo Cash Flow Management
Burn rate is corporate slang for how fast you spend your money and it may be the single most important variable in business operations. If a company’s burn rate is faster than the revenues coming in – soon there won’t be a business. Any good CEO will take out a hatchet out of their desk drawer and start swinging at any extra fat they can find. Next will be non-fat items like jobs, capital assets and incoming services.
What is your condo association’s burn rate? If there’s not a healthy financial condo reserve – you need to get proactive early. Maybe there are some services your just don’t need every week or month? If there is one – add it up and see what you can save if you do it your self or just forgo the service for a couple months.
