Why should your community association work with an HOA management company?
There are dozens of excellent reasons to work with professionals and many ways your HOA can benefit from partnering with an experienced management team. Today, we’re focusing on how an HOA management company can deliver value not only to your board of directors but your entire community.
Leveraging California HOA Management Experience
The experience that a professional management company brings to your community can make a difference in the quality of life experienced by your homeowners. Property managers are trained to handle every potential challenge faced by your community and the way it’s managed. Property managers are also educated; we stay up to date on all the local laws that govern HOAs and residential communities. We understand best practices and we network with other management companies to continue our professional development.
This translates to a preservation of home values in your community. It protects board members and the association from potentially expensive mistakes.
Most HOA boards are volunteer-run and they struggle to meet all the requirements of their position and the expectations of their homeowners. With a management company taking care of the logistical needs of your community, you have a team with time to dedicate to your community. You’ll get the attention you need from a professional management partner with the capacity to support your community.
HOA management experts can also protect your association from liability. They’ll establish and maintain trust between homeowners and the HOA leadership.
Creating Space between Boards and Residents
It’s awkward when you have to enforce rules with your neighbors and follow up on overdue fees and dues. You may have to discuss penalties and violations with people who have become your friends.
An HOA management company makes that less awkward.
Your HOA management company serves as an objective and unbiased third party. Property managers are experts who have experience with difficult conversations and challenging situations. We bring diplomacy and fairness to what might otherwise be an emotional conflict. Board members have the ability to distance themselves from engaging in disputes within the community that is their home.
This is better for relationships within the community and it protects the board from the ire of disgruntled residents who property managers are holding accountable.
HOA Financial Management
Financial management is always one of the largest and most important tasks that an HOA board must take on to keep the community funded and prepared for emergencies.
HOAs have legal requirements and governing documents that dictate how money is managed, tracked, and reported. Your financial recordkeeping must be well-documented, accurate, and transparent to the entire community.
An HOA management company delivers value by bringing expert systems that help manage:
- Income and expense statements
- Tax reporting
Most HOA boards have a treasurer who leads the financial reporting and recordkeeping functions. The board treasurer can work with your management company to ensure there are appropriate accounting standards, checks and balances, as well as fraud prevention. Property managers often have professional accountants and bookkeepers on staff. You can expect detailed financial reports and accounting statements that keep your community’s books organized. Property management technology also has space for financial software and systems that track all the money coming into your community and being spent.
The HOA budget is the board’s responsibility, but you can lean on the data that’s provided by your management company to put together accurate budgets that meet the needs of your community.
You’ll also need reserves. Your management company will have relationships with reserve specialists who can ensure you have the funds you need to face a major expense. You’ll also have a myriad of funding options and the professional relationships that are needed to help you leverage those funds if necessary.
Property Management Technology and Your HOA
Your homeowners will expect almost all HOA business to be done online.
They want to pay dues online, they want to report maintenance issues online, and they want to access reports and meeting minutes online. Are you equipped to provide this type of technology?
A management company will be. Most HOA management teams invest in state-of-the-art technology to help HOA boards and homeowners access the information they need. This makes daily life more convenient for your homeowners and it also creates an atmosphere of transparency and accountability. Owner portals provide convenient billing and payment options and allow messages to be sent and requests to be made and tracked should they need to be referenced later.
Since the Covid-19 pandemic, technology has become critical in the effective management of communities. You cannot function without it. Your HOA likely does not want to spend thousands of dollars investing in your own software systems and new technology. You don’t have to when you work with an HOA property manager who already has these things in place.
Consistent and Customized Systems and Processes
That technology is important, but more important are the systems that technology automates.
The day-to-day operations of your HOA require consistent and effective processes and procedures. This is what keeps you organized, drives communication, and helps you remain responsive to the needs of your community. A management company has all of this in place already. And, those systems can be improved upon to provide a personalized and customized management approach that fits your community.
These established systems will help with:
- Annual meeting management.
- Communication between homeowners and the board.
- Website maintenance and updating.
- Accounting services and payment methods.
- Vendor management and relationships.
If you have struggled to set up and document consistent systems for the management of your association, a property manager can deliver what’s missing or make some suggestions for more efficient and automated ways to collect dues, send notices, share meeting agendas, etc.
These are just a few ways that a management company provides value to your community. We would welcome the opportunity to tell you more about the HOA services we provide in California for HOA boards and community associations just like yours. We can deliver full-service management or virtual management if you’re looking for something more flexible and cost-effective. Please don’t hesitate to contact us at Hill & Co. with any questions you have.