Background: Before taking over the management of a garden style condominium association, the previous management company was basically sitting idle, collecting a management fee and waiting for the HOA to bottom out.
Challenge: The primary challenge was to restore the financial health of the HOA. Upon taking over management, the association had over $188,000 in outstanding dues and over $115,000 in unpaid invoices to vendors. Furthermore, the operating and reserve accounts were not at the level they needed to be at in order to support long-term financial security.
Action and Outcome: We implemented a collection policy and consistently followed it in order to reduce the amount of outstanding dues. We proactively made several changes in their overall operation by securing the best vendors and utility contracts as to produce a lower cost and higher level of service. We also assisted the board in creating a financial plan to meet their long-term goals and objectives. Over the course of 2 years, we managed to decrease their outstanding debt by 66% and payables by over 90% while increasing their operating account balance by 300% and reserve balance by 200%.