Hello World! Welcome Friends! There are more than 350,000 homeowner associations in the U.S.
These associations perform several important functions for developed communities. They set the standards and rules for everyone to follow. They also maintain common areas for everyone to enjoy.
An HOA management company can be the best option for associations to run efficiently. If you think it’s time for your association to hire an HOA management company, read on to learn the top benefits of hiring an outside company.
1. HOA’s Are Volunteer Run
HOAs are typically run by volunteers. The volunteers mean well, but they don’t always get it right. It might be best to turn to an HOA management company to take over.
There are stark differences between professionals and volunteers doing the work. Volunteers may or may not follow through with important tasks. They may have other priorities, so maintenance can take a back seat. For this reason, engaging volunteers to ensure they remain focused on the task at hand as best as possible is paramount.
With a professional management company, the tasks are a priority.
2. Advice for Board of Directors
Even though an HOA board of directors is volunteer-run, there are a lot of responsibilities that come with the job. Any missteps could result in lawsuits because board members didn’t understand the legal implications of their actions.
For example, board members could decide to use a contractor that they personally know rather than go through a documented process. They may hold informal meetings without meeting minutes.
This could violate laws such as the Florida Sunshine Law. An HOA company can provide valuable advice to prevent these actions from happening. The HOA and its board members are legally protected.
3. Conflict Management
When you have a group of people together in a community association, there are going to be complaints and disagreements.
HOA managers that are volunteers may not have the skillset to defuse these situations. They can easily escalate into larger problems for everyone in the community.
A professional HOA property manager has the experience and skillset to handle the most delicate situations. They can dissolve conflicts between neighbors and enforce compliance with the rules.
4. Financial Oversight
Unfortunately, HOAs can be a source of fraudulent activity. One president of an HOA was found to steal more than $21,000 over three years.
It can be hard to track these cases because fraud usually occurs a little bit at a time. Professional HOA managers are trained to keep a close watch on the books and detect fraud and waste.
An HOA manager can also work with community members to collect unpaid dues. It can be difficult for volunteers to do, especially if a good friend or neighbor gets behind on their payments.
5. Protects the HOA in Case of Audits
HOAs are legal entities, usually registered as non-profit organizations so they are tax-exempt. HOAs are under scrutiny to retain non-profit status.
They are subject to audits by state authorities and the IRS. They’ll need to produce documentation, meeting minutes, and financial records.
An HOA management company can prepare for the audit, and they’re likely to have experienced audits before. That will help your organization be ready.
6. Vendor Management
HOAs often depend on vendors and contractors for a variety of tasks. Landscapers keep the common grounds and yards up to date. Pool companies clean the pool and maintain it.
The list goes on and on. It can be hard to manage all of these vendors and pay them on time. When your HOA uses a professional manager, they are the point of contact for the vendors.
They can answer questions, pay invoices, and schedule appointments.
7. Maintain Property Values
One of the advantages of buying a property in an HOA is that it protects property values. Everyone in the community has to live by the same set of rules to maintain the property.
As a result, you won’t see properties full of weeds, in disrepair, or full of trash. Those are things that can drag down values in a neighborhood.
HOA managers help owners maintain that advantage by enforcing the rules.
What to Look for in an HOA Management Company
Do you see how an HOA manager changes how you run your organization? You’ll need to know what to look for in an HOA property manager to find the right fit.
Start with the skills and experience an HOA management company has. They should have certifications that show they understand the federal, state, and local laws that apply to HOAs.
Some certifications are the Professional Community Managers (PCAM) and the Certified Manager of Community Associations (CMCA).
You want to ask potential managers what services they will provide. Some companies provide a full suite of services, while others will offer ala carte services.
Ideally, you want to work with a full-service HOA management company. You also need to make sure that you can afford their services, too. The pricing will depend on your location and the level of service provided.
There are two more questions you should ask HOA managers. The first is who will be managing the HOA. You want to know who they are and what kind of property management experience they have.
You also need to ask how many other HOAs they manage. You want to make sure that nothing falls through the cracks because the HOA manager had to much to do.
The Right Way to Manage an HOA
Working with an HOA management company brings a number of advantages to the table. They take a lot of the burden off of volunteers. The company also protects the HOA from legal liabilities and fraudulent activities.
They can also be a way to boost property values while enforcing the standards set by the HOAs rules. When you interview HOA managers, make sure you ask the right questions to find the best one for your organization.
Did you find this article helpful? Be sure to check out the home page of this site for more useful home tips.
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Toodles,
I think the point about property value was very important. I think looking at properties within an HOA is also going to become increasingly important to buyers so property value might increase if you start an HOA in your community.