Exploring Professional HOA Management

Written by Posted On Tuesday, 16 January 2007 16:00

All too often homeowner association boards approach problems from the backdoor, reacting rather than planning. A professional HOA manager can smooth out the bumps in this rocky road. Here are some of the benefits:

Consistent Maintenance. Managers can assist in identifying and prioritizing maintenance needs. Coupled with regular inspections, the needs are refined over time so that the HOA gets the biggest bang for the maintenance buck. Separating emergency from non-emergency maintenance allows more efficient and cost effective handling of both.

Mediator. One of the board's biggest challenges is dealing with people that refuse to follow reasonable rules or to pay on time. When dealing with repeat offenders, the board may overreact by initiating lawsuits or, worse, refusing to deal with the issues at all. In either case, the HOA suffers as problems compound. A good HOA manager executes systematic enforcement to bring offenders back in line. The manager also intervenes between the board and a homeowner to defuse an escalating conflict.

Continuity. Since homeowner associations are run by volunteers, continuity is a HUGE problem. Volunteers like to go on vacation and sleep once in a while. Most don't enjoy late night phone calls. Board and committee members come and go, often viewing their terms more like a sentence than a privilege. A good manager links these well meaning volunteer efforts together, filling the gaps where volunteerism falls short.

Organization. The manager provides centralized record keeping. Important information like rules, governing documents, budgets and financial reports can be posted on an HOA website for 24/7 access. Many HOA managers provide this service to their clients.

Education. Knowing what is expected of HOA directors is not obvious. Every state has statutes that affect HOA governance and they vary from state to state. The HOA's governing documents give specific direction to the board. Then, there is good business practice. The manager can educate directors on their roles to maximize their effectiveness or remind the board as needed when directors get personally entangled in HOA issues.

Emergency Response. Management companies offer a 24 hour emergency service to mitigate and minimize damage.

Manager Costs. Management costs are directly related to the range of services and the size of the HOA. The range of basic services offered should be broad enough to include routine business like attending regular meetings, maintaining records, bookkeeping duties, responding to information requests and maintenance coordination. Managers routinely charge extra for non-routine duties like processing insurance claims, extraordinary collection activity and special projects assigned by the board.

Qualifications. A good homeowner association manager must be efficient, diplomatic, respectful and caring. A willingness to understand each HOA's needs and philosophy is paramount. Consider only management companies that specialize in homeowner association management. Call references, including both current and former clients. As with any contractor, it is important to provide a list of expected duties (specifications) to each potential manager. This way, the board can reasonably compare the players.

Easing the board's responsibilities and protecting the HOA's valuable assets make considering a professional HOA manager a prudent course of action. Explore the possibilities.

For more on HOA management, see Manager Issues .

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