At this point in time, so many people are taking advantage of sublets on Airbnb to make additional money. One of the companies that take care of connecting the right person to the right homeowner is definitely The Urban Avenue, which helps you prevent spending a lot of money on multiple agencies and waiting for the perfect match. But this revenue generating method isn’t possible for HOAs. On the contrary, most homeowners associations frown upon tenants subletting their apartments on hospitality websites.
As far as homeowners associations are concerned, there are definitely a few ways to earn more money for your community. In fact, not only is it possible to earn additional revenue, it’s also possible to cut down on your expenses, which is ultimately the same thing and often easier to accomplish.
Take caution though when first starting out. Think about the time, money, and effort involved needed to be successful in potential revenue generation activities. Make sure the revenue will outweigh the costs – both personally and monetarily – because you could otherwise end up wasting time and money that you’ll never recoup again.
With that said, we’ll take a look at some ways you can earn more money for your homeowners’ association as well as ways that you can attempt to save money. By implementing this dual strategy, your HOA will be able to create programs that will help monetize assets and have more cash on hand.
Is Your Clubhouse Sitting There Doing Nothing?
Many communities have a large, gorgeous clubhouse sitting there in the center of everything. For any community, this is certainly a great place to have available for residents to throw parties and whatnot. Unfortunately, many communities are missing an opportunity to recoup some of the clubhouse expenses by charging residents who want to use the clubhouse for private events. This poolside facility is the perfect place to rent out to residents who want to host a private party at the clubhouse.
I realize that the governing documents for some communities may not allow this practice. And even if it is permitted you will want to listen to the questions and concerns of the members before you take a step like this. You may find that you By involving the stakeholders and discussing it openly you will be able to determine if and how you can use your clubhouse to generate additional income.
Have You Considered Selling Advertising Space?
We seem to be getting bombarded with advertisements everywhere we go. Some may look at this positively while others look at it negatively. Regardless of your feelings, just realize that the community you live in is definitely a desirable target for those running local businesses. So, if you have a community newsletter, you should definitely consider contacting local businesses to give them an opportunity to advertise their products and services in your paper.
At the end of the day, offering ad space in a weekly, biweekly, or even monthly newsletter isn’t going to generate a great deal of revenue. But it’s definitely a fine way to earn additional income, and it could be one piece of your overall profit generation puzzle that ultimately ends up bringing in a decent amount of money over the long term.
Do You Have Unused Space in Your Community Doing Absolutely Nothing?
Is there any unused space in your community being wasted? Instead of leaving it sitting there doing absolutely nothing think of creative ways the area could be used to benefit the residents. Perhaps the area could be used for storage, parking, or even garden plots. By allowing residents to rent these areas, the association can help provide for the needs of homeowners while generating a little extra income.
Before diving into this project headfirst be sure to consult your governing documents and your attorney to be sure you are complying with the law and your governing documents. It’s also important to consider conversion expenses ahead of time. Will the cost make it worth the potential revenue? By thinking about the investment ahead of time, you’ll determine if this is a good revenue generating strategy or not.
Offer Multiple Payment Options to Homeowners
If your homeowners’ association is suffering from cash flow problems because you’re having a difficult time collecting homeowners association fees, you should seriously consider expanding your payment options. As an example, let’s say at the moment you’re only accepting cash and checks. This may have been the best way to collect HOA payments in the past, but the advances in technology mean better options for you and the homeowners in your community.
Think about adding different payment options for your customers. Start accepting credit cards, PayPal payments, E-checks, monthly recurring debits, or anything else you can think of. By expanding your options, you’ll have an easier time collecting payments from homeowners and your cash flow will improve because of it.
Become a Paperless Community
Many homeowners associations spend a great deal of money on printing, paper, handling fees and distribution costs to the management companies they deal with. At this point in time, simply using email and a website will eliminate hundreds of dollars in paper expenses every year, which will ultimately put more money in your pocket. So consider taking your community paperless as soon as possible.
As you can see, the HOA side hustle possibilities are endless. Proceed with caution to make sure you’re complying with the law and your documents, but thinking outside the box could prove to be the proverbial money tree.
Latest posts by Ashley Lipman
- 5 Ideas For an HOA Side Hustle - February 21, 2018
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