The HOA board is responsible for protecting, maintaining, and enhancing the Association, but this is difficult to do on its own. Board members willingly volunteer their time and resources to make sure their community is a pleasant place to call home. If it’s not run effectively, then it won’t be a pleasant place at all.
Since HOA board members are volunteers, they don’t always have the time or expertise to make sure the Association is being run properly. This is where an HOA management company comes in.
The right management company can work alongside your HOA board to help in the following ways:
1. Changing Association Documents
The CC&Rs are the highest level of documents in the Association, only overruled by the law. The Bylaws dictate how the HOA operates as an organization. The HOA rules are in effect for the safety of the community. An HOA manager acts as point of contact and facilitates the process if any changes need to be made these governing documents.
2. Doing a Reserve Study
“What is a reserve study and how do we do one?” are common questions that HOA board members have. An HOA manager helps guide the Board through doing a reserve study and works directly with the reserve specialist.
3. Understanding the Law
The law is complicated and requires professional understanding. While it’s important that board members have a basic understanding of the law, an HOA manager can help when the Board is faced with specific issues.
4. Navigating a Lawsuit
Ignorance of the law is not a defense! An HOA manager has knowledge about the laws and relationships with attorneys that can lend a helping hand. Any time an HOA board is faced with a lawsuit they should consult legal counsel.
5. Finding Funds for Unexpected Projects
Sometimes, an Association is faced with an emergency repair project, natural disaster, or change in the law that suddenly makes something in the Association out of compliance. A manager can help find the funds when a surprise project surfaces.
6. Board Member Recruitment and Retention
Finding and keeping Board members may be one of the hardest tasks and HOA board is faced with! However, if the meetings are run well, members respect each other, and things get done in the Association, the Board becomes something people actually want to be a part of because they have ownership in the Association.
7. Running Successful Board Meetings
An HOA manager can help a Board be prepared for meetings by working with the President to prepare and post an agenda, getting the meeting packets to other board members, and answering any questions related to the agenda before the meeting.
This is not a conclusive list, but in an nutshell, an HOA manager helps facilitate processes in the Association and offers guidance along the way.
If you think your HOA board could benefit from hiring a management company, here are some important questions to ask during the interview process.
In the same manner, it’s important that Board members are prepared to answer questions about the Association too so the management company has a better idea of how it can help.
- What kind of issues is the Board experiencing that is driving it to hire a management company?
- Why is the Board unhappy with its current management company?
An HOA board should be comfortable with all aspects of the management company it chooses. A good management company is a positive influence and helps an Association be successful.