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Oct. 17, 2021

Condominium Budget Season Is Approaching

Condominium Budget Season Is Approaching

The end of the fiscal year means it's time for condominium corporations to pass a budget for the next year. Involving a committee comprised of unit owners is a smart idea to avoid any pitfalls or disagreements.


The end of the fiscal year means it's time for condominium corporations to pass a budget for the next year. Involving a committee comprised of unit owners is a smart idea to avoid any pitfalls or disagreements.

Transcript

Adrian Schulz:

In this episode of the I Love Winnipeg Real Estate podcast, we're going to speak about condominium budgets because budget season is approaching. The end of the fiscal year means that it's time for condominium corporations to pass a budget for next year. Involving a committee comprised of unit owners is a smart idea to avoid any pitfalls or disagreements down the road. When you have the input of your community members, it's easier to see what their priorities are and what you can afford to be cut. Unit owners expect to have a say in what their condo fees are going to be and what that money will be spent on. Every budget will be somewhat different, depending on your community's unique circumstances, but there are some areas for which you will want to make sure to allocate funds. And specifically, here are three of those areas.

Adrian Schulz:

First, routine maintenance. This includes items like water, electricity, groundskeeping, insurance, and property management. You'll want to take a look at how much the community has spent in the past year to get an estimated figure. You'll also want to consider whether the current level of service is meeting the community's expectations. For example, some community members may be willing to contribute more to hire a higher quality landscaper to spruce up the property, or to have better quality and speed of snow surface removal.

Adrian Schulz:

Now, capital projects is the next thing. This is often the largest part of any budget. Your community might be willing to contribute for a parking lot or a roof, but to do that, it's necessary to put it in the budget in the first place. Before embarking on these type of expensive projects, it's important to gauge the support and find out if all homeowners are actually interested and willing to contribute. Keep in mind that your reserve fund study will also dictate or specify what capital projects should be done, when and the approximate cost that they may have associated with them. Then of course, there's the rainy day funds. This one might be easy to forget, but it's just as important. The fact is that you don't know what's going to happen a month from now or 10 months from now.

Adrian Schulz:

A brutal winter might require more repairs to the parking lot, a nasty storm could require a heavy duty cleanup. Keeping funds set aside for the unexpected is a smart policy that will pay off in the long run. Remember that responsible budget planning is the fiduciary responsibility of the board. A budget preparer needs to carefully analyze each component of the budget to ensure that it's in order. For example, the preparer will check with vendors to lock in prices for the next year, they will also check legal documents to see how common element fees will be handled, and to check the adequacy of reserve funds. Condo owners also need to be promptly notified of their fee burden and any changes to their ownership in the corporation. Now, at Imperial Properties, we've earned a strong reputation through offering excellent condominium and residential property management services. We can help you navigate the often confusing budget process through our unparalleled management expertise. We offer exceptional service, knowledge, efficiency, and cost effectiveness, to serve our diverse client base here in Winnipeg. To find out more, visit imperialproperties.ca or call 204-272-8799. Thank you.