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We all know that there is quite a bit of funding that an HOA board will need access to if it's to ensure that the wheels keep turning for the organization. If you want to avoid going the special assessment route, one option is to implement an increase in dues. Here's a look at the letter that will come into place for that purpose.
Download Your Free HOA Dues Increase Letter Template Here!
Do you need a done-for-you template to let homeowners know about a raise in dues? Download yours for FREE here!
HOA Dues and Revenue
The board of directors will typically complete an annual budget for the HOA, which will guide what those who have a membership to the HOA will be required to pay for that next year.
Any money received in this way will be used for maintenance, insurance, management fees, and the reserve fund of the association.
Situations will arise such as those where the fee request for the preceding period was not sufficient or the reserve is consistently low.
An HOA will simply crumble without adequate revenue, and this is why members may be required to pay more.
Writing Your Letter to Inform of the Increase in Costs
It's never a good idea to just drop a new cost or an increase on any person without some kind of heads-up. Therefore, doing so in the context of a community would be even more disruptive. This is where the HOA dues increase letter comes into play. Bear in mind that you can download the template we provided above to ensure that yours is easy to draft.
Some HOAs will have their board approve the idea of the increase with a letter being sent once the approval process is complete. In other cases, the HOA may open the increase to a vote while encouraging the owners to vote in favor.
In any case, the letter will need to shed adequate light on why the increase is happening. Try to explain the current situation in detail that has led to a concern or crisis. The more details are given here, the better.
It also helps to indicate how the deficit will affect services and other necessities if it is not rectified. From there, you can indicate what the proposed increase is. You may also want to communicate that modifications will be made to governing documentation where necessary.
Finally, indicate what the point of contact is if the homeowners want to hear more about the increase or if they wish to send in any questions or concerns they may have about the matter.
Do You Have a Good HOA Software Solution?
We hope that our overview was helpful. Remember to download our free HOA dues increase letter template to make crafting yours a breeze!
Speaking of a breeze, we also encourage you to give our HOA management software solution a try for its cost-effectiveness and features such as:
- Automated payments of dues, rent, fines, maintenance, amenities, etc.
- Accounting and associated report management
- QuickBooks and bank account sync
- Unlimited users
- Management of ARC and maintenance requests
- Document sharing
- Free website and resident portal
- Convenient communication channels (text, email, phone, portal message)
Don't just take our word for it. Request a free demo today to see what it can do for you!
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