Many communities consider hiring an HOA management company to alleviate their burdens. However, hiring an HOA management service company is a huge investment and can significantly impact the community’s finances. Why is hiring an HOA management company a good idea? Let’s find out.
Why should an HOA hire a property management company? Here are several key reasons why hiring an HOA management company might help.
HOA management companies are experts at creating hospitable and engaging communities. These companies know how to increase homeowner engagement and get the community more involved. With their help, the board can expect higher attendance at HOA meetings.
The presence of an HOA management company will also attract more potential board members. This is because the candidates know they don’t have to do menial tasks such as collecting fees or accounting. They can entrust these to the management company and focus more on improving the community.
One reason a community might hire an HOA management company is for their knowledge and experience. HOA management companies know how to handle violations, accounting, and delinquent homeowners more than your average resident. They also have mastery over repairs and maintenance work required of HOA communities.
In addition, management companies are more well-versed in local and state regulations. Different states will have different requirements and conditions for planned communities. For example, HOAs in Florida have certain requirements regarding insurance and fidelity bonds for board members. Homeowners associations must comply with these regulations to avoid liability.
Why hire a HOA management company? One of the main reasons is to boost efficiency and save time. Board members are responsible for acting in the community’s best interest and serving the residents. However, they don’t always have the time, knowledge, and skills to meet the community’s needs.
This is why hiring an HOA management company will help. Management companies often have the resources, technology, and systems to assist HOA communities. The board can access the company’s large network of vendors. Thus, the board can save time researching vendors and immediately work with reputable contractors.
Management companies can connect the board to industry professionals like HOA lawyers and accountants. In addition, the management company often takes over much of the board’s more minor responsibilities. They can take over meetings, board communications, and even enforcement.
Homeowners associations are well-known for their community appeal and high property values. However, preserving curb appeal takes work. The HOA must maintain the community’s common areas, collect dues, and enforce rules to keep things in order.
While smaller HOAs can get by through self-management, larger communities often need outside help. They need professionals to keep track of vendors, enforce community rules, and run the community.
Hiring an HOA management company will help enhance community appeal overall, as they can run communities like well-oiled machines. They also have access to reliable vendors, industry professionals, and tools that make everything convenient for board members and residents.
HOA board members can often collect dues, oversee meetings, and enforce rules just fine. However, most board members will not know how to manage the community’s finances. Very few people know how to draft budgets, handle accounting, or create financial plans for HOA communities.
A management company can help because they have experience handling HOA finances. They can connect the community to reputable accountants and handle almost all HOA’s financial transactions. This also eliminates bias and potential conflicts of interest that often arise when the board members hold all the money.
Furthermore, HOA management companies know how to collect unpaid dues, coordinate with collections agencies, and handle delinquent accounts. They also know which insurance policies are necessary and how to ensure the HOA’s long-term financial health.
Homeowners associations need to connect with a lot of industry professionals. They also need access to the right resources to remain efficient. However, most board members don’t know where to turn or what to look for, especially when new.
This is where hiring an HOA management company comes in. Management companies often list reputable contractors for repair and maintenance jobs. They’ve worked with these contractors before and can vouch for their performance and quality of work. Moreover, if an HOA doesn’t like a contractor, they can simply let the management company handle the termination.
Apart from this, management companies usually have access to professional management and accounting software for HOAs. Communities can use the management company’s tools to create a website or provide residents with a community portal. This streamlines collections, announcements, work orders, and communications.
HOA management companies can connect communities with the right lawyers and legal counsel to help the community remain compliant. They can advise the board when revising the governing documents, dealing with homeowner conflict, or undertaking new projects. Moreover, they can even help the community navigate potential lawsuits from third parties or homeowners.
Self-management comes with its pros and cons. However, one of its biggest downsides is that there’s often a lack of transparency between the board and the community members. Fraud, theft, and embezzlement are all too common in HOA communities.
Hence, hiring a management company is a good idea if a community wants more transparency and accountability from the board. The management company is less likely to make biased decisions as they don’t have a financial interest in the community. They will also be more responsible and efficient in handling community finances.
There are several benefits to hiring an HOA management company. They reduce the board’s burden and can increase the community’s overall efficiency, thus enhancing curb appeal. It’s never a bad idea to consider hiring one if the community has the funds.
Are you looking for an HOA management company? Vanguard Management Group is the right choice. Call us today at 813-930-8036 or contact us online to learn more!