Budget Expenditure Model

Started by PaulR2 • 7 replies • 2504 views

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PaulR2 (Texas)
Posts: 1

Posted:

I'm the treasurer of my HOA and was wondering if anyone has documentation on what percentage of budget a typical HOA spends on landscaping, management fees, etc. I think we are out of whack on some of our expenses and it would be great to get an idea of what the average/typical percent of budget is for various expenses. Thanks.

AnnaD2 (Florida)
Posts: 960

Posted:

Paul each association is different and nothing is set in stone. A lot of it depends on WHERE you need to allocate your funds. But here is where our money goes:

1. General and Administration: 9%
2. Utilities: 35%
3. Landscaping: 8%
4. Pool: 3%
5. Building Repairs: 5%
6. Payroll: 3%
7. Miscellaneous: 2%
8. Reserves & Insurance 35%

Just an example.

JohnK3 (Pennsylvania)
Posts: 967

Posted:

What Anna said.

About 70% of our dues go for landscaping/ponds stuff. On the other hand, 0% goes to a PM as we are self-managed.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Paul - what does out of whack mean? If you have common areas to care for, and nothing else, then that's what the funds are spent on. That's why the HOA would exist. Not for profits bring in as much money as they need to pay for their mission, with little left over (see other discussions on this topic).

So WHY dues are assessed is the important question.

Can you be more specific? Especially what you think is being neglected by your HOA.

MicheleD (Kentucky)
Posts: 4,491

Posted:

Our expenses looked like this last year (our landscaping was up a bit due to clean up from some bad storms).

Landscaping/lawn maintenance: 43%

Utilities: 26%

Security: 8% (we hired an off-duty policeman last year for our lake area)

Legal: 7%

Taxes/Filing Fees: less than 1%

Insurance: 6%

Other Prof Svc: 4%

Postage, Operating Supplies & Operating Expenses: All 2% each

Our landscaping and utilities have always been our largest chunk of expenses.

Another point to make: we are self managed, so we would have no PM fees either.

GeorgerwilliamsW (Indiana)
Posts: 975

Posted:

The following is cut and pasted from a website. I hope it shows up properly:

Expenditure Budget
Item	Jan-Dec 200x	Jan- Dec 200y	Jan- Dec 200z	Percent 03-04	Percent	Jan- Dec 200z
Accounting	$3,500.00	$3,500.00	$3,500.00	7%	6%
Legal	3,150.00	3,150.00	$1,950.00	6%	3%
Administration Fees	1,000.00	1,000.00	$1,600.00	2%	3%
Entrance Lighting	1,650.00	1,650.00	$1,650.00	3%	3%
Common Electric	1,100.00	1,100.00	$600.00	2%	1%
Common Water	1,000.00	1,000.00	$1,500.00	2%	3%
Common Taxes	2,600.00	2,600.00	$2,800.00	5%	5%
Common Insurance	1,500.00	1,500.00	$1,500.00	3%	3%
Insurance Deductible	500.00	500.00	$500.00	1%	1%
Mowing/Fertilization/Weed	15,000.00	15,000.00	$18,000.00	28%	31%
Common Maintenance	9,065.00	9,065.00	$9,145.00	17%	16%
Lake Maintenance	1,825.00	1,825.00	$1,825.00	3%	3%
Snow Removal	2,750.00	2,750.00	$2,750.00	5%	5%
Community Activities/Miscellaneous	2,000.00	2,000.00	$2,600.00	4%	4%
Reserve Fund	6,600.00	6,600.00	$6,600.00	12%	11%
Safety and Security	$0.00	$0.00	$2,000.00	0%	3%
TOTAL	$53,240.00	$53,240.00	$58,520.00	100%	100%

KirkW1 (Texas)
Posts: 1,665

Posted:

I don't think there is a right or wrong amount of expenditure on landscaping. In our case, it is our second largest expenditure behind management. But others have amenities that cost far more then their management. And there are other HOAs that only have insurance and landscaping costs.

Your best bet is to look over each area and see if the costs can be reduced in that area while maintaining the level your neighborhood wants.

AnneH2 (Florida)
Posts: 82

Posted:

Where are you all putting Bad Debt?

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