CAI-NJ Aug.2018 (w)

replace the words “cost” or “expense” with the word “value” and see how it changes the conversation. Ask, “What is the value I am getting in return?” instead of “What is it going to cost?” and it may change how you approach certain expenses. If you are always simply hiring the lowest bidder you may be missing out on opportunities for long term savings or significant improvements in the quality of services provided to the unit own- ers. With that said, sometimes, the lowest cost approach might offer the greatest value, but the Board should remain cognizant of ways to increase the association and property value in everything they do. 1. Budgeting is an important task and can be stressful. However, there are simple concepts that can be followed to ease that stress. 2. Have Reasonable Expectations – Like I said earlier, you have to have reasonable expectations of what the unit owners are able to pay. On the flip side, you have to prepare a budget with reasonable expectations of what it will cost to operate the property. Keeping maintenance fees low is not always a good thing over the long term. 3. Put the Past in the Past – Whether it is a deficit or an unexpected expense, occasionally things come up that your budget can’t handle. The important thing is to take care of it as soon as it is feasible. It may require a special assessment or a line item in the next year’s budget to make up for the unexpected expense, but whatever the case,

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