How To Navigate an Increasingly Expensive World
Rising inflation has been all over the news, but that doesn’t necessarily make it any easier for boards and owners to swallow the climbing costs for both large projects and day-to-day operations. Fortunately, many associations saw the writing on the wall and increased their budgets for 2022.
“Most of the increases we planned for in 2022 budgets are basically holding tight — except for maintenance supplies, lawn supplies, plantings, mulching, and the like,” says Paul Grucza, director of education and client development at the Seattle-based management company CWD Group, Inc.
Katie Anderson, CEO of Aperion Management Group, LLC, which manages around 65 associations in Central Oregon, noticed a marked increase in volatility beginning in mid-February or so, though.
“I think everybody tried to land on pretty reasonable predictions for 2022, but, even with those increases, vendors aren’t able to find staff,” she says. “I’ve had landscapers walking away from projects they’ve worked on for 10 years or longer because they can’t get staff.
“We’re seeing our communities press pause on a lot of things that aren’t urgent to try to ride through these current circumstances and see where we come out on the other side. If there isn’t a life or safety issue, most are waiting through this economic lifecycle to tackle projects.”
But who knows how long this cycle will go on? “It’s challenging,” Anderson says. “We look to adjust reserve studies and budgets, but nobody can predict how long this situation will be with us.”
Our experts have four moves you can implement now to reduce the pain of startling budget variances, unexpected special assessments, and similar financial repercussions now and into the next budget year.
Read the full story now: 4 Tips for Navigating Higher Costs with Boards and Owners