Budgeting in a Time of COVID
We’re willing to bet that very few of your clients’ budgets are on track for 2020, and figuring out how to adjust and plan for 2021 is complicated.
“We’re looking at all those odd pieces, the additional costs associations have borne since March,” says Paul Grucza, director of education and client development at the Seattle-based management company CWD Group, Inc. “What we’re trying to do for 2021 is weigh what those costs have been so far and ‘crystal ball’ whether we’re going to need this for next year.”
The proper approach is going to vary by association. “It’s not the type of situation where one size fits all,” says Brad van Rooyen, president of HomeRiver Group-Florida, which manages about 120 associations in the state. “It’s going to be community-specific because every community is dealing with COVID-19 and its effects in a different way.”
While some associations have extensive amenities, van Rooyen says, others don’t really even have common areas. For those associations that have been — and likely will continue to be — affected by COVID, budgetary adjustments must be carefully managed, though.
“It’s going to come down to how much the board can increase the budget where it doesn’t cause sticker shock but at the same time ensures the association is maintaining and addressing its specific COVID-related protocols for a safe environment,” van Rooyen.
Read the full article now to learn some of the most critical areas your boards should consider: