Money Market or T-Bill for part of an HOA reserve account
Hi Terry, We’re trying to get our property manager to put $100k of our reserve HOA account (vs our operating account) into something that gets 4-5% interest and is safe. T-Bill, or Money Market or ??
They haven’t been anxious to do it. What guidance should be give them. Thanks,
Terry Says
That’s the responsibility of the Board — to direct the management company on how to invest the funds. Of course, it depends on the time horizon for the money. But at the very least, it should be earning 4% in a money market deposit account at a bank. Which leads me to ask whether the property manager is getting some kind of kickback or other benefit from the bank because he/she leaves money earning less in an account!
At any rate, and I know this is true if you are in Illinois, the Board can vote this decision and overrule the objections of the property manager. And maybe get a new property management company???
