Unexpected expenses are unavoidable, even for an HOA. Whether they come as a result of natural causes, like weather or pests, or from unforeseen maintenance issues, there may come a time when your HOA dues simply can’t cover the costs of running the community.

Below are some ideas of how to bring in extra funds to help your HOA get back on track financially:

  1. Revenue Generating Activities. Putting on community events and charging a small cover cost is one way to bring in extra revenue for your HOA, while also creating fun, bonus activities that your residents will view as perks of living there.  These events can be small and simple things such as movie nights, pool parties, picnics, or baking contests.  If you find that you’re making good money, you may want to consider one or two bigger events throughout the year, like a BBQ or dance.  Whichever type of event you choose, make sure that you are balancing cost and revenue to ensure that you’re bringing in enough money to be worth the costs of hosting the events.
  2. Renting Out Unused Space. There’s likely plenty of unused space throughout your community that can be rented out to residents for their own personal use.  Clubhouses, kitchens, boardrooms, and other meeting rooms are all facilities that are empty much of the time, but which have great potential to generate income when rented out to residents for private parties, meetings, or other personal functions.  Depending on the rules listed in your association’s governing documents, you may want to consider renting facilities to people inside and outside the community.  In addition to the clubhouse, consider charging a fee for extra storage space, additional reserved parking spaces, reserved lockers at the pool and gym facilities, bike storage, or, if you have the space, garden plots in a community garden.  These are all opportunities that residents will gladly pay for, and that they will view as value-adds to their experience of living in your community.
  3. Sell Ad Space. If you send out weekly, bi-weekly, or monthly newsletters, you may want to consider selling ad space in each edition.  Your community is a valuable market for local businesses, so selling advertising space is a great way for them to generate business while you generate some extra money.  Your residents will appreciate the chance to learn about new, local businesses that they may otherwise not know of.  Keep in mind that while this strategy might not produce tons of money, it can be a consistent source of a smaller amount of revenue.
  4. Bring in Outside Vendors. Fitness instructors, mobile car details, or mobile pet groomers will often pay a fee to use the association’s facilities.  Bringing outside vendors into your community will add value to your residents’ experience, and add cash flow to your budget.  Consider hosting a vendor fair, in which companies will pay for access to the community, and residents will get the benefit of learning about local financial, healthcare, wellness, and insurance service providers.
  5. Go green. Recycling may be able to reduce frequency of trash pick-up since there will be less waste generated.  Also, by implementing paperless communication whenever possibly throughout your community, you will be surprised how much you can save on paper and printing costs.
  6. Amenities fee – If you don’t already do so, consider charging a monthly or yearly amenities fee in addition to the standard HOA fee. Since the amenities in your community are already in place, the income that you receive can be largely profit.  This is a good way to fund the general upkeep of pool and/or gym facilities, and maybe even generate enough extra income to justify upgrades and enhancements,

By implementing any of the above these ideas in your community, you’ll not only create a new revenue stream—you will also improve your resident satisfaction and increase property value. You can earn extra income for the HOA by both generating additional revenue and cutting down expenses, but be sure to consult your governing documents before making any big decisions. Also remember to look into the tax implications for increased income and speak with a financial expert before moving forward. Need help getting your HOA finances back to good standing? At Spectrum, we are happy to help however we can! We offer refreshingly different HOA management services and have offices located in Phoenix, San Antonio, Dallas, Austin, Houston, and other surrounding areas.