The Hidden Income Stream

“The safest way to double your money is to fold it over and put it in your pocket.”

– Kin Hubbard

Who hasn't stooped over to pick up a quarter, a dime or even a penny once upon a time? Contrarily we may tip someone more than that person should likely get, or pay a little more for a national brand item than a store brand item, but only a deranged person would actually throw money away. Condominium associations don't actually throw money away, either, but they certainly could do a better job of looking around for the money they could find.

Condominium associations are not-for-profit associations. In each condominium association (at least this is the way it is supposed to occur) the Board of Directors adopts a budget by determining what is needed throughout the year. At the end of the year, there should be little to no money left, and the process starts again.

That doesn't mean, however, that associations can't make money. In fact, it is the rare association that doesn't have to raise fees sooner than intended because of unexpected bills, such as higher snow removal bills or a higher maintenance expenditure caused by finding rot when replacing a door or window.

These things happen. It's called life. But what also should happen is associations should not overlook sources of revenue within their own association. So, where can it look?

Rent extra parking spaces to the Owners, but only for 6-12 months at a time, and then the Owner goes to the back of the waiting list, so others have the chance to rent.

If your association has a large common area, such as a parking lot, why not sponsor a Farmer's Market or have a Fall Festival Day? This has worked well around the nation as local craftspeople are always looking for places to go and show and sell their wares. The Association charges a fee for booths. It should likely hire a police office for 4-8 hours, and that might run $250.00, but that's the price of one booth. Give local vendors the opportunity to bring in a food truck fora day. And, surprisingly, most of the events mentioned will be covered by the Association's master insurance policy … but always check first.

Moreover, you'll get more people into your association, and the more events an association has and the more people come through the association, the more knowledge there is of your association which can translate into more interest in the association which translates into higher prices when it comes to sell.

If you have a pool, it is likely owners invite friends and family over. Consider charging a fee of $10.00 a head for non-residents, who must be accompanied by an owner or tenant. They are going to invite them in anyway, so you might as well make a few dollars off of their presence. It will also keep the pool from becoming too crowded.

If you have a clubhouse that sits vacant for 350 days of the year, consider renting it out for birthday parties, anniversaries, graduation parties, and more. Approach local, financial advisors to hold seminars and charge them. They'll pay; and they will likely bring food, too!

One of the easiest and most overlooked things to do is to have a community newsletter. Aside from the benefit of spreading the word about upcoming events, such as Board meetings, Annual Meetings, and Rules reminders, there's so much more that can be done.

Why not check with the Chamber of Commerce and publish a list of upcoming events, such as local school concerts, high school plays, and upcoming high school games? Add in community events such as links to local movie theaters for times and a regional community theater and what plays will be upcoming.

Then, solicit advertisers. Local electricians, plumbers, insurance agents, etc. all look for new customers all the time. And the interior of your Unit is not covered by the Association, so you'll need a plumber, electrician, etc., at some point.

Ask the owners where they shop. Then approach the businesses to advertise in your community newsletter. Approach a furniture store about advertising.

Sometimes things such as these won't make much money, if anything, immediately, but the goodwill and the reputation as a friendly community only helps resale values.