Reply to I need to raise Common Charges Again

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Reply to "I need to raise Common Charges Again - When do I tell People?"

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[quote=Anonymous]I am Treasurer of my Beach condo of 30 units. We do have a managing agent, we also have published financials done by CPA sent out every year. So people do know what goes on day to day and financials as of 12-31-2024.

However, I just found out once again Flood Insurance premiumn is rising and all the insurances are rising. Flood Insurance has to be paid lump sum. They dont do installments. The rest you can put a deposit down to be binded, then pay rest on an installment plan with interest or lump sum.

Soon as I pay bill we will have ZERO in reserves. But the bigger issue is actually insurance is not a one time bill. I have to pay it again next year and will be higher. I have to raise common charges to cover that PLUS I need at least 100K more to build up reserve funds.

Right now it is $475. We also have one unit on market. Which that person will have heart attack. These are all two bedroom, 1 and half bath, 1,200 sf condos with patios and parking. So they all pay the same as around same size.

I raised common charges from $350 to $475 last year even though I though $500 to $550 made more sense to build reserves. I got over ruled as some people felt jumping from $350 to $500 optically felt too much. But now I am thinking I got to do $575 at least, $650 might even be better to build up quick.

What is best way to do this? We were at $350 for a few years but that was too low. We only raised it to $475 Feb of this year. My bad. But to be honest they all wanted to kick can down the road. Building is in good shape as from 2013-2019 did a lot of updates pre prices shooting up for construction work. But in next few years as things need updates again it will be very expensives as costs have doubled over last 6-7 year.

Would you want a meeting, a note.  When we did it in Feb I had auditor rush out the 2024 financials and mailed it to owners along with letter of increase. Zero complaints as they had fresh financials and pretty obvisous. [/quote]

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