How To Manage HOA Duties For Small Communities?

Jan 24

Homeowners associations come in various forms and sizes, but those with fewer units are more likely to choose self-management. However, contrary to common assumptions, managing a small HOA isn't as simple as it appears.

If your neighborhood has less than 200 units, your HOA is likely self-managed. Smaller homeowners associations do not have the resources or require the services of a full-service property management business.

Keep reading to find out how to administer a community organization on your own.

Don’t Overcharge Dues

Small HOA communities often face difficulties generating the finances required to keep the organization viable. You can only collect money from a community with fewer than 50 members.

While you may need money to pay for numerous services, you must be careful not to overcharge. Expensive dues might be a big turnoff for potential newcomers.

If you plan to raise your regular dues, make sure you give residents notice. You can assist them in planning their finances for the future year by doing so.

Keep Meticulous Records

Keeping track of your HOA funds is a crucial component of self-managing a community association. Your HOA, like any good business, must keep meticulous records of all financial transactions.

You'll be able to assure proper reporting and keep track of where your money is going in this manner. You can also find out if your homeowners' association is in financial trouble and make a plan to correct it before it’s too late.

Rebranding

After that, think about rebranding. What distinguishes your HOA management firm? Most association management companies provide the same financial services, logistics, operations, and project management for the association and its members.

Suppose you reside in an area where the winters are severe; you may learn about "winterizing" HOA homes and specialize in it. Then reinvent yourself as a company that specializes in managing associations during snowstorms and other harsh weather.

Alternatively, your specialization could focus on a specific facet of your company's "personality," such as customer service.

Organize Effective Board Meetings

Board meetings that are chaotic, excessively lengthy, or just plain unpleasant might be a sign that the HOA isn't working as smoothly as it should be. On the other hand, a healthy HOA may be identified by a well-organized and concise meeting adhering to a rigorous plan.

Every member of a strong association should receive meeting notices with the HOA board’s agendas ahead of time. This also allows homeowners plenty of time to organize their schedules and make plans to attend.

Be Transparent

For the care of the community, associations with less than 50 residents tend to levy a higher fee. As a result, your HOA board should make every effort to be open and honest about all financial choices.

Plus, the residents have a right to know how the association is spending its money. Monthly reports or regular updates might keep them informed. As a result, members and your board will have more trust in each other.

Recognize When Assistance is Needed

A good HOA board member will not be hesitant to seek assistance. However, you may find yourself too preoccupied with life and all it entails devoted entirely to the HOA. If the board is overburdened, it must be modest enough to recognize when it requires assistance.

HOA management businesses have a lot of expertise and understanding about how to run a homeowners association. In the event of an emergency, consider picking up the phone and calling one.

Create a Website and Social Media Pages

You'll need a digital presence once you've created a mission statement and a brand so that clients can discover you. Make a website that is easy to read and has professional photos.

If you don't want to pay a web designer, several low-cost alternatives are available to help you build a website, such as SquareSpace, WordPress, or Wix.

Purchase HOA Management Software

You'll need to budget carefully and spend wisely when launching a new HOA management firm. However, there are some instances where cutting shortcuts is not an option. One of them is HOA management software.

The correct HOA management software streamlines your operations and makes it easier to manage all aspects of your client's accounts. You can swiftly expand your business and manage clients with HOA software from CINC Systems.

Apply Smart Spending Tactics

Because smaller communities usually have a tighter budget, you must be careful how you spend your money. Set aside funds for crucial needs such as common area maintenance, garbage collection, and insurance.

Don't waste money on items that your organization doesn't require!

Services With Additional Value

HOA management can aid in the creation and maintenance of your community's website, give emergency assistance, confer with the board on critical decisions, and prepare board meeting agendas.

These are minor duties, but completing them can provide a great deal of relief to HOA boards.

Get Help From a Professional

Poor management resulting from a lack of board competence is one of the dangers of self-managing an HOA. Unfortunately, many board members lack the essential expertise and experience to perform specific HOA administration jobs effectively.

Obtaining help from professionals such as accounting firms or law firms is a simple answer to this problem. It's not the same as handing over all of your responsibilities to a management firm, but it can certainly help.

Final Thoughts

You should always go with the solution that best meets your small community's needs. The success of a homeowners' association is primarily determined by how well it succeeds in each of these areas.

Without board members, reaching a high level of accomplishment is difficult. Accept your part in the equation and do your job to the best of your ability if you want to understand how to manage an HOA smoothly genuinely.

Gabby Reese