HOAs are becoming increasingly common in neighborhoods. They offer residents peace of mind because of the standards they set and the enforcement of community rules. Because of that, the number of community associations grew to 365,000 in 2023.
But if this is your first time working in HOA property management, you may not know all the tactics and challenges of running an HOA. Let's look at some of the best practices all great HOA organizations use.
Involve the Homeowners
Knowing how to manage an HOA is hard when the HOA board doesn't know what the community wants. They pass rules without input and may upset the community when they don't like the changes.
Get the community as involved as possible with the HOA.
- Send regular communications,
- Be transparent about upcoming changes
- Invite homeowners to upcoming HOA meetings
Doing this ensures everyone has a say in the community, and you minimize problems.
Set Clear Community Rules
An HOA shouldn't allow homeowners to do whatever they want. People like HOAs because they set a minimum standard for the neighborhood. One of the HOA's biggest responsibilities is ensuring this by setting standards for the neighborhood.
Regularly review the rules to ensure they are fair and add value to the community. Once you have fair rules, follow up on violations and give homeowners a chance to rectify the situation and add value to the neighborhood.
Keep Accurate Finances
The last thing homeowners want is unexpected assessments and fee increases from their HOA. This often happens because the community doesn't have the funds for an unexpected expense because of poor finances.
Make sure to account for every inflow and outflow for the HOA. Keep enough money aside for unexpected expenses to ensure you're covered for any issues.
Find Quality Board Members
Sitting on an HOA board isn't the right choice for everyone. People need enough time to handle the responsibilities and great people skills to handle disputes between others.
The HOA board should thoroughly vet anyone before bringing them onto the board. Make sure they have enough time to attend meetings, fulfill their responsibilities, and contribute ideas.
Use Quality Vendors
HOAs are only as strong as the people and organizations they work with. If they sign contracts with unreliable vendors, a community may go downhill and have a disorganized administration.
Whether you use a full-service property manager or hire vendors for individual services, ensure they are reputable and have great reviews. Get references, read reviews, and ask the right questions before hiring a vendor.
Handle HOA Property Management Right
A great HOA is a giant positive for the community, allowing residents peace of mind and the chance to live in a fantastic community. But if you mishandle HOA property management, people will become frustrated and potentially leave. Make sure you put the best practices above into place to improve your HOA community.
If you're looking for assistance with HOA management, an HOA property management company may be the solution. At PMI Malta, we offer many services (from finances to administration) for HOA communities. Contact our team to learn more about how we can help manage your community.
