How Can an HOA Management Company Save You Money?
Here are several ways outside management services can help save your HOA time and money.
Vendor Management
HOA management services companies can assist with vendor management. They can make sure issues are handled and disputes minimized. By not letting problems escalate, the management company ensures the community receives good workmanship at a fair price. In addition, the management company can develop positive relationships with the HOA’s vendor pool, which can lead to contract discounts and a more efficient use of time.
Legal Knowledge
Companies who provide HOA management services are typically quite knowledgeable regarding state legislation that relates to homeowners’ associations. Many communities lack the necessary expertise, which could result in HOA provisions and rules that are in conflict with the governing laws. A management company can review your HOA policies and ensure everything conforms with current legislation. This can result in significant financial savings reducing the risk and litigation expenses the HOA could be faced with.
Financial Planning
Having someone look at your long-term finances and help plan for the future is an essential part of a community association. HOA management services companies can help streamline your annual budget while providing recommendations for future years. They can also make suggestions for saving money in the areas of management, upkeep, and more.
Keeping the Community Happy
At the end of the day, what is important is that community members are happy. If homeowners feel their HOA is not doing their job or don’t trust how finances are allocated, it can create a lot of animosity. Ideally, the happier the community members are, the more likely it is that new people will buy into the development. An HOA community management company can make sure that the HOA Board makes good decisions for the Homeowners in the community, and possibly shed light on certain issues. Making the right choice for the HOA and community is all that a management company can want.
How to Hire an HOA Management Company
From collecting dues and managing the group’s finances, to enforcing HOA policies, handling maintenance issues, resolving conflicts, and dealing with legal matters, homeowner’s association boards have many crucial responsibilities. When volunteer hours run short, or the complexity of the work exceeds the available skill set of those willing to do it, hiring an HOA management company is often the best solution.
Here are a few tips that may help when it comes to hiring an HOA management company.
- Availability: When hiring an outside management company, be sure you have a clear idea of your manager’s daily, weekly, and monthly availability, as well as how many hours a month he or she is planning to devote to your project.
- Credentials: Given the complex nature of many of the tasks performed by HOA managers, you may want to consider candidates who have attained certification through Community Associations Institute, which offers specific training for association managers—or you may want to at least require candidates to have general property management certification.
- Communication and conflict resolution skills: When evaluating a potential HOA manager’s work experience, pay special attention to communication skills and conflict resolution ability. While interviewing, ask each candidate for concrete examples of each. Also be sure to touch on these points when checking references.
- Vendor network: One major asset that a professional association manager can bring to the table is an established team of vendors across a wide variety of functions. Be sure to ask your prospective HOA managers who their team of go-to service professionals include, and how long they’ve worked with each company or individual. You might also ask them to price out a project or two, then compare the bids of each of your candidates.
- Contract duration: Once you’ve identified the right HOA management company for you, make sure the terms of the contract are acceptable. Typically these types of contracts run for a year, and allow for termination with 30 to 90 days’ notice. If a company insists on a longer contract, or does not include a termination clause, you may want to move to the next candidate on your list.