Maintenance costs can consume a significant portion of a community’s annual operating budget, but with the right strategies, community association managers (CAMs) can control expenses without compromising standards. In 2025, smart planning, proactive vendor management, and digital tools make it easier than ever to stay on budget while keeping communities well-maintained.
Key Takeaways:
- CAMs can reduce costs with smarter vendor selection, improved collections, and proactive upkeep.
- Preventative maintenance and competitive bidding are essential.
- VendorSmart supports CAMs with tech-driven vendor management, RFP tools, and bid comparison.
1. Improve Your Collection Strategy
Outstanding dues can severely impact your budget. While traditional notices and letters have their place, modern solutions are more efficient and proactive in helping CAMs maintain cash flow. Late payments don’t just affect the books—they delay repairs, improvements, and key services, which can ultimately hurt resident satisfaction.
To improve collection strategy:
- Automate payment processes to improve on-time collections and reduce manual follow-ups. With smart integrations, homeowners can receive digital reminders, make secure payments online, and view their dues history in real time.
- Implement credit bureau reporting or partner with specialized community association collection agencies. These vendors understand HOA-specific laws and often collect more effectively than general firms.
- Deny access to amenities such as pools or clubhouses for homeowners with overdue payments, providing a non-confrontational but firm consequence.
CAMs should regularly collaborate with their boards to revisit their collection policy, ensuring it reflects both legal requirements and the financial needs of the community. A well-structured, clearly communicated policy reduces friction and improves payment behavior across the board.
2. Use Competitive Bidding for Vendor Contracts
Many communities overpay for services simply due to inertia—sticking with vendors out of habit or allowing contracts to auto-renew without scrutiny. Competitive bidding is a crucial tool for CAMs to ensure they’re getting the best possible value while maintaining or improving service levels.
Here’s why competitive bidding matters:
- Attract new vendors and fresh ideas. Inviting multiple vendors to bid opens the door to innovation, better service packages, and cost-saving approaches.
- Negotiate stronger terms. Even if you stay with your current vendor, a transparent bidding process gives you leverage to negotiate better pricing or add value to the contract.
- Avoid inflated renewal costs. Without a bidding process, long-term vendors may incrementally raise rates without justification.
3. Prioritize Preventative Maintenance
When it comes to controlling costs, prevention is always better—and cheaper—than cure. CAMs that develop a long-term preventative maintenance strategy reduce the risk of costly emergency repairs, extend the life of community assets, and improve resident satisfaction.
Strategies for effective preventative maintenance include:
- Create a proactive maintenance calendar. Schedule regular service for high-value systems like HVAC, roofing, plumbing, elevators, and irrigation. Preventative touchpoints catch minor issues before they become major expenses.
- Conduct seasonal inspections. Identify and address wear and tear, water damage, pest activity, and weatherproofing issues early.
- Keep up with basic recurring tasks. Routine work like gutter cleaning, power washing, and repainting prevents more expensive repairs later.
4. Establish Clear Homeowner Rules
Homeowners play a critical role in maintaining the community’s appearance, function, and infrastructure. When residents understand and follow guidelines, the strain on shared spaces and equipment is greatly reduced—resulting in fewer repair calls and lower expenses.
Strategies to reinforce homeowner accountability include:
- Clear communication of rules and responsibilities. Post community guidelines in common areas and distribute updated handbooks annually.
- Education through orientation. Provide new residents with an overview of rules and maintenance expectations.
- Consistent enforcement. Apply fines or consequences when appropriate to deter repeat infractions.
CAMs who proactively engage with residents about care expectations often see better outcomes and fewer costly damages.
5. Monetize Community Amenities
Maximizing underutilized amenities is a smart way to boost revenue and offset maintenance costs. With proper planning, CAMs can turn existing spaces into profit-generating opportunities without disrupting resident enjoyment.
Ideas to explore:
- Private rentals. Allow residents or local organizations to rent clubhouses or pavilions for events like parties, meetings, or classes.
- Membership access. Offer paid memberships to non-residents for access to pools, fitness centers, or tennis courts during non-peak hours.
- Seasonal or event-based programming. Host summer swim lessons, fitness classes, or community markets with registration fees.
All revenue programs should be governed by clear contracts, reservation systems, and liability protocols to ensure sustainability and resident satisfaction.
6. Leverage Bulk Contracting Opportunities
Bulk contracting is an effective way to reduce per-unit costs across multiple properties or within large communities. By aggregating demand, CAMs can negotiate more favorable pricing, improve service consistency, and reduce administrative burden.
Opportunities for bulk contracts include:
- Utilities and telecom services. Negotiate cable, internet, or bundled utility contracts at discounted group rates.
- Maintenance and recurring services. Standardize vendors for landscaping, pest control, pressure washing, or janitorial services across properties.
- Seasonal or emergency services. Secure bulk snow removal or storm response contracts ahead of time for better rates and faster response.
Collaborating with other nearby communities or sister properties under a management company can further increase purchasing power and drive cost savings.
Final Thoughts
Maintenance doesn’t have to break the budget. With proactive planning, tech-enabled processes, and the right vendor partners, CAMs can protect their communities while keeping costs under control. Let VendorSmart be your strategic partner in 2025 and beyond.
Ready to streamline your vendor strategy? Visit VendorSmart.com to learn more or submit an RFP today.