The past 12 months have been challenging for condo owners. During this time we have seen floods, power failures, snow and extreme cold.
This has resulted in unanticipated damage to condo buildings and higher utility bills.
Extreme weather events are occurring with greater frequency. Preparing for these events should include a financial cushion so that your reserve or operating fund can withstand these financial hits as they occur.
The extreme and prolonged cold this past winter was predicted.
Condo budgets should have been based on this prediction. Those that accounted for an expected cold winter should be in good shape. Condos that ignored predications will have to pay additional utility costs in the coming year through higher fees.
Be sure your condo building is prepared for extreme weather events and colder winters.
- Store operating surpluses for future use rather than spending it today
- Increase reserve fund contributions to account for the likelihood of increased weather damage to your building
- Promote energy conservation as a way to compensate for high utility bills