Build an HOA budget that actually holds.
A good annual budget is the difference between a calm year and a special assessment. Here’s how to build one — and a free template to start from.
The short version
Budget from last year’s actuals, fund reserves as a fixed line (not leftovers), and leave room for contingencies. Our free template walks your board through every category.
Start from actuals, not optimism
The most common budgeting mistake is wishful thinking — assuming costs will hold flat or that delinquency will magically improve. Start from what you actually spent last year, adjust for known increases (insurance, utilities, contracts), and be honest about collection rates.
Treat reserves as a fixed cost
Reserve contributions belong at the top of the budget as a non-negotiable line, funded at the level your reserve study recommends — not whatever’s left at the bottom. A budget that shortchanges reserves is just borrowing from your future self.
Leave room for the unexpected
A contingency line — even a small percentage — keeps a single surprise from blowing up the whole year. In the Gulf South, that buffer earns its place every storm season.
Get the free HOA budget template
A board-ready spreadsheet with every category laid out — operating costs, reserves, and contingency. Yours, no strings.