HOA management can be challenging for many associations. The board has much on its plate as there is much to do to manage a community. On top of that, they also need to take care of their personal lives and careers. This is where professional HOA management can come in handy.
There are a lot of considerations and tasks to handle when it comes to homeowners association management. Self-management may be possible, but it’s not always practical for communities. Here are some reasons why your community may need professional help.
One of the most significant responsibilities homeowners associations must fulfill is financial management. A lot goes into it; it doesn’t just entail collecting fees. Homeowners associations must also do accounting, prepare budgets, conduct reserve studies, and prepare financial statements.
These responsibilities can not only be burdensome but, sometimes, downright impossible for inexperienced board members. Not all of them have financial expertise or backgrounds in accounting. Moreover, most board members don’t have the time to learn a new field or take an accounting course.
This is one of the major reasons why many homeowners associations hire HOA management companies. These organizations have years of experience handling an association’s finances. They know what to budget for, what to prepare, and how to follow the Generally Accepted Accounting Principles (GAAP). With them, HOAs can fulfill their duties and stay financially healthy.
Community association management also requires a certain level of legal knowledge. That’s because homeowners associations must follow local and state laws to ensure they remain compliant. For example, HOAs can’t impose rules that go against the Fair Housing Act. However, not all board members know local laws so they may have liability risks.
To avoid these mishaps, homeowners associations hire HOA management companies to guide them. These companies are often well-versed in state laws and remain updated with new regulations. Hence, they can guide HOAs in their decisions to ensure they don’t become legally liable for anything.
In addition, HOA management companies can help with litigation issues. They often have legal teams or access to lawyers who specialize in homeowners associations. Hence, HOAs have access to help when a homeowner files a lawsuit or if the HOA needs to foreclose a home.
The HOA board is responsible for the community’s finances and legal activities. Many homeowners associations hire HOA management companies to keep the board accountable to avoid any potential for fraud or dishonesty. This reduces the risk of embezzlement, board member kickbacks, or unfair practices.
In addition, HOA managers aren’t members of the association, so they don’t have a personal interest in the community. This allows them to make impartial decisions without conflicts of interest. The community members can also feel at ease knowing that the board is not abusing its power.
Unlike HOA managers, the board members have personal relationships with people in the neighborhood. They have friends, acquaintances, and even enemies in the community. This may make them more prone to bias. They may enforce rules inconsistently and become partial to certain members. Furthermore, they may enforce rules that are only convenient for them.
This is why hiring a professional property association management is helpful. HOA management companies do not have personal biases and can enforce rules consistently. They can look at the governing documents objectively and ensure everyone is equally held accountable.
HOA management companies not only have the right expertise and experience — they also have the right resources. For example, some HOA management companies can offer a homeowners association's website or portal through HOA software. This allows HOAs to communicate more effectively and organize their files more efficiently.
HOA management companies also have connections. They can connect HOAs with lawyers and accountants who can help the board. Moreover, they even have access to reliable vendors and insurance agencies. HOAs don’t need to canvas for vendors or insurance brokers themselves. They can avoid hiring shady contractors and buying inadequate insurance.
There are many day-to-day operations that HOA board members have to fulfill. They must ensure vendors are doing their job, oversee staff, plan meetings, and collect dues. These can be heavy for board members who don’t have a lot of time on their hands. This is where HOA management companies come in.
HOA management companies can take care of the community’s daily operations. The HOA board no longer needs to handle these tedious tasks themselves. They can free up time to do more important things or focus on more pressing concerns.
Big or small communities that need more volunteers will need to hire third parties. An HOA management company can help by shouldering the bulk of the HOA’s responsibilities and operations. This allows communities to function and ensures the board members are not burnt out.
Homeowners associations often run better when there’s an HOA management company involved. These companies help communities stay organized and efficient by offering resources, connections, and expertise. When a community functions properly, the homeowners are more likely to feel satisfied and proud of their HOA.
This can help the community reduce the number of problems they face. It puts less pressure on the board as homeowners are less likely to complain. Moreover, the residents are more compelled to comply when they see that the HOA is doing its part.
HOA management companies are efficient and have a long list of trustworthy vendors. As a result, they are experts at maintaining common areas and enhancing a community’s aesthetic appeal. This allows HOAs to raise their reputation and attract more homeowners to the community.
In addition, efficient common area maintenance will lead to fewer repairs and replacements in the long term. It can significantly reduce costs and special assessments, lowering the residents’ financial burden. This can make the community more appealing to potential buyers and raise property values.
It’s not easy to manage an entire community. There are many duties and responsibilities the board needs to fulfill. It can be challenging to accomplish these tasks without professional help from an HOA management company.
Are you looking for professional HOA management in Tampa, Largo, or around Florida? Look no further than Vanguard Management Group. We provide premier HOA management services to communities of all kinds. Call us today at 813-930-8036 or contact us online to learn more!