Condo & Home Owner Association BEST PRACTICES
Training for Board Volunteers and Owners
Quick Insights
INSIGHT 101
Importance of a "financial planning mindset" in Association living

Single family home: Where most of us grew up. We generally never knew when those big repair and replacement expenses were coming, or how big the financial hit would be.
But in assocation living, a "planning" mind set is a hallmark of a harmonious, financially strong Association.
Besides, as shown at the example at right, who's got five million dollars just sitting around, unless you planned for it?

For more Quick Insights, click on the links below

101 - Importance of a "financial planning mindset" in Association living

102 - Why is a Reserve Study so important?

103 - Key forecast in a Reserve Study: cash flow analysis by year

104 - Often, three alternative funding plans in Reserve Study

105 - You have LESS CONTROL in a condo association than you do in a single family home...Just the way it is.

106 - Sometimes, with careful reaching out, the worst neighbors can become better neighbors

107 - How can you be hurt - especially in condos - without enough reserves?

108 - VIDEO - Simple concept: 'Pay as you use it' but explain in calm, respectful way

109 - Reserve Underfunding: Pie chart explanation for how it happens

The NEED for PLANNING:
Key difference between single family home and condo living

*Illustration below based upon graphics from Patrick's book "Condos, Townhomes and Home Owner Associations"

Detached, single-family home

Future Repair and Replacement Costs:
Generally not planned

Example Repair Costs (single-family home):
Roof replacement: $10,921
Siding replacement (aluminum): $17,033

Townhome/patio home association

Future Repair and Replacement Costs:
MUST be forecast and planned in order to be successful

Example Repair Costs (240 units):
Roof replacement: $2.4 million
Siding replacement (wood): $3.1 million