It’s October, and that means budgeting is top of mind for condo, co-op, and HOA boards. Whether you’re deep in spreadsheets or just starting to review draft numbers, the goal is the same: make decisions that set your commnunity up for a healthy, predictable year ahead.
Budgeting isn’t only about covering expenses — it’s about planning for stability, avoiding surprises, and creating the foundation for a building that runs smoothly.
Here are five questions every board should be asking as they plan for 2026.
1. Are we allocating enough for reserves and future capital projects?
A strong budget looks beyond the year ahead. Your reserve fund should prepare your building for upcoming projects like façade repairs, roof work, or equipment upgrades — not just react when something breaks.
If you’ve been relying on special assessments or deferring maintenance, it’s a sign your reserves may need attention.
2. What costs are rising fastest, and how are we planning for them?
Insurance premiums, utilities, and staffing costs have all seen steady increases. Ask your management team which expenses are trending up and how those projections are being built into your 2026 budget.
Planning proactively helps prevent midyear surprises and gives your board more control when prices shift.
3. Where did we overspend last year — and what did we learn from it?
Looking back is one of the best ways to plan ahead. Compare your prior-year actuals to your budget and identify where spending exceeded expectations.
Was it a one-time issue or an ongoing trend? The answer will guide smarter forecasting — and better decisions about where to adjust.
4. How are we prioritizing when not everything can get funded?
Budgets always involve trade-offs. Instead of trimming evenly across the board, focus on what matters most to your building’s health and residents’ experience.
Invest in preventive maintenance, efficiency upgrades, or technology that saves time and reduces costs down the line.
5. What’s our plan for unexpected expenses?
Even well-run buildings face surprises. Make sure your budget includes a contingency for unplanned work, and that your board has a clear process for approving emergency expenses.
The goal isn’t to predict every issue — it’s to be ready when one comes up.
The takeaway
A thoughtful budget builds confidence — for your board, your residents, and your building’s future.
Use these questions to guide your discussions and shape a plan that balances today’s needs with tomorrow’s priorities.
