A homeowner’s association (HOA) is a board that regulates either single-family neighborhoods, buildings or a set of attached homes and is overseeing the management, promotion, and sale of individual homes. An HOA is typically created by community developers, allowing the community to have voting rights before development is complete, and then control is handed over to residents once complete. Homeowners volunteer to serve on the board of the HOA, allowing them to make important decisions about the community. These decisions usually affect the services provided by the HOA, community rules, collection of dues, and maintaining communal in the neighborhood.
If the HOA is well run, it can be a blessing to its members as it has reasonable fees and is not overly restrictive. It is, however, common for a community-run HOA to run into problems upholding neighborhood standards and delivering on promises. This is not always the case, however, as some simply decide it may be worth the cost of hiring an HOA management company. They have to review the benefits and convince their members it would be more beneficial as such companies would bring in:
An HOA company, due to its experience, would be more knowledgeable in areas concerning neighborhood management and would typically place trained staff on-site for each community managed. Trained professionals can create budgets, project revenues, and maintain expense reports. Management companies should have access to legal professionals who, at no additional charge, can provide counsel if needed.
Many HOA management companies have years of experience in managing communities. This experience can be leveraged when keeping the residents calm, addressing problems that arise, and following-up after providing solutions.
A lot of the services needed by an HOA need to be outsourced. Choosing the wrong contractors will result in the members overpaying for subpar services. The company should have a list of trusted contractors they can consult when hiring. They are often able to negotiate friendlier rates thanks to their long-standing business relationships.
They will also evaluate the available financial resources to determine where they can be used most efficiently.
For neighborhoods considering an HOA management service provider, how do you go about selecting one from the many others?
– Determining the needs of your HOA. What can homeowner volunteers take on and what services would the management company need to provide?
– What other services do they provide? For example, Flagstaff HOA management services provide training for the board of directors and help them understand their various duties
– Beyond the tasks assigned to them, what expectations do you have of them? Set expectations, from the quality of vendor contracts to the level of customer service expected, and avoid misunderstandings in the future.
– References and credentials are important and may even be required by the state. Make sure to follow up on the references to find out if there are areas, they may be lacking in.
– Understand the fees and rates from each potential firm and read their contracts thoroughly. Most contracts will run for one year with a 60-day termination notice. Longer contracts need to have an acceptable termination clause.