Adapting To Inflation In 2022 and 2023

The unexpected increase in inflation has affected everything necessary to maintain high-rise homes, from energy to cleaning supplies, labor, and equipment. Condominium boards must prepare to pay higher costs and budget accordingly. To manage and control costs, condominium communities should revisit budgets and build an 8% increase in line items for supplies, materials, and equipment. Prioritizing projects, signing annual contracts for landscaping and equipment maintenance, and topping up reserve funds are essential measures to mitigate the impact of inflation. Condominium boards may also need to consider a one-time special assessment to address immediate cash flow problems. Ultimately, better management may help reduce some costs, but communities have no control over rising costs and must prepare for more in the coming year.