Every month, we pay our monthly lot rent, but do we know what the community uses those dollars for? Sure, we know they include taxes and maintenance, but how much of your dollar goes where?
Let’s start with income
The community’s income is 97% lot rent, with the other 3% mostly water bills and late fees.
The community’s biggest expense is the split-mortgage to ROC-USA and NYS-Housing. 47% of your rent dollar goes towards paying back the mortgage.
Our community has to pay 3 taxes. Erie County Property Tax, Alden School Tax, and a Corporation Tax. 22% of your rent dollar is used for taxes.
The services provided by Keynote, including bookkeeping, auditing, legal services, and general advice, are vital tools to keep our community in operation. 9% of your rent dollar is used here.
Community buildings use gas and electricity, just like your homes. To keep everything humming, from the heaters in the water main box, to the lights at the mail room; 6% of your rent dollar goes here.
Annual tree trimming, plumbing repairs, septic pump maintenance, septic cleaning, and snow removal fall under this category. 5% of your rent pays for these services.
Our insurance is a general liability coverage to protect our community and the residents within. Some of our rules are based on the restrictions based on this coverage. This also covers the community vehicle. 2% of the rent dollar goes towards insurance.
Reserve Replacement Fund
The reserve replacement fund is for capital improvements such as road repairs and landscaping. This fund is also for emergencies, such as water main breaks, septic pump failures, or emergency snow removal. 9% of your rent dollar is reserved for emergencies.
I hope you found this article informative, and if you would like more information, I would encourage you to attend our budget planning meeting in October. Our accountant will be in attendance to answer all your questions.