Strategies for Successful HOA Management

1/6/2025 (Permalink)

HOA House Group

Strategies for Successful HOA Management

Running a homeowners association successfully takes the right amount of grit and hospitality. While you want to maintain a well-organized, productive ship, you don't want management to come across as authoritarian. There's also the concern that residents simply won't engage. Many people assume that the purpose of HOA board members is simply collecting dues and enforcing rules. In reality, community management is the true core task of HOA leaders. You are creating an enjoyable, safe place where residents feel like they are getting their money's worth. Do you want an active, engaged, and accountable HOA? Start implementing these strategies for successful HOA management.

1. Get Everyone on the Same Page With Effective Communication

Nobody wants to feel like they're out of the loop. Unfortunately, poor communication within an HOA can lead to distrust and rumors. People can get offended and defensive when they feel like they aren't "in the know." You can solve this by creating clear channels for communication.

Create a communications standard when relaying critical information about governing documents, policies, procedures, rules, or key dates and deadlines on the HOA's calendar. Achieving this might require you to invest in a software platform that allows for posting, sharing calendars, and direct messaging. You can also develop your system using simple and free technology tools from Microsoft or Google. In addition, resident-facing communication should include a mix of monthly newsletters, routine email updates, a website with a login portal, and social media pages. Creating a strong sense of community where all residents feel seen, heard, and kept in the loop is one of the best ways to improve tenant retention for the long-term vitality and financial viability of an HOA.

2. Don't Leave the Legalities to Guesswork

Some HOA managers are far too relaxed when it comes to compliance issues. They end up in hot water because they don't take time to bring in the right people to advise them on regulatory compliance. Be proactive with compliance to avoid controversies that impact the entire HOA's reputation. What does this look like? As you know, HOAs must comply with a number of environmental, housing, and zoning rules. It's important to build relationships with regulatory authorities in order to stay abreast of new developments with local, state, and federal laws and regulations that impact your HOA. Additionally, it's crucial to consult with local legal experts specializing in HOAs to ensure that you're properly interpreting your obligations. It's far easier to stay current with compliance rules than it is to try to catch up!

3. Be Serious About the HOA's Reserve Fund

For residents, HOA fees represent a sizable investment in their quality of living each year. That's why responsible financial management is one of the core responsibilities of an HOA's leadership team. An HOA's financial health is summed by its reserve fund. As you know, HOA reserve funds are funds that are set aside for large projects or emergency responses. Most HOAs cut it close with these funds because this is an "easy" category to ignore. As a result, they are forced to levy special assessments on HOA members when urgent or major repairs are needed. This is demoralizing for residents. It can also make them distrust HOA leadership. By taking the slow and steady approach of building up the HOA reserve account, HOA leadership can demonstrate to members that they are being good stewards of their money.

4. Add Better Signage

Are you constantly dealing with squabbles about residents or visitors violating rules? Consider the fact that the rules aren't clear enough. When it comes to clarifying rules in outdoor spaces and common areas, visual communication is key. Think about adding more signs regarding parking restrictions, pet policies, smoking policies, and more. If your community has a pool, hot tub, or outdoor court area, be sure to add signs with clear rules regarding who can use the facilities, hours of operation, and behavior policies. These signs remove ambiguity. They can also help to cut down on the number of questions and disagreements that end up on your doorstep as an HOA manager.

5. Don't Be Afraid to Use Professionals

One of the strategies for successful HOA management is simply understanding when the HOA team is biting off more than it can chew. Many HOAs around the country now use professional management services. Property management companies bring "corporate" capabilities for things like technology, payment processing, and legal oversight to HOAs of all sizes. In most cases, services can be scaled based on the needs of an HOA management team. You may only want to pay a company to handle background work tied to payment collection and processing. If your HOA management team is short on both time and people, you might want a full-service company that offers marketing services, legal services, and financial services. Full-service companies often provide proprietary software for operating your HOA's website and member communication portal.

6. Create a Foolproof System for Collecting Dues

When members don't pay dues on time, HOA boards get backed into corners. Dues are crucial for covering monthly payments for utilities, maintenance, community events, management fees, and overall operating expenses. HOA leadership never wants to make residents feel like they're being pestered for payment. However, they must be firm about payment deadlines. Here are some ways to boost on-time complete HOA payments every month:

1. Send out friendly reminders as payment due dates approach.
2. Create an online payment portal for easy payments.
3. Add reminders about payment deadlines to all newsletters.
4. If you're doing a special collection for a major renovation or upgrade, share the deadline for payment as far in advance as possible. Some residents may need to budget for a few months in order to come up with the unexpected lump sum.
5. Offer convenient payment options. By expanding options to include checks, cards, and digital payment options, you give residents the ability to pay using the method that allows them to transfer funds in the fastest way possible. Consider also setting up a system for monthly recurring payments using credit cards.
6. Provide a grace period for delayed payments.
7. Offer temporary payment plans for homeowners who are struggling with financial hardship.

Of course, residents must be gently reminded of the consequences of failing to pay HOA fees on time. Send reminders of the escalating consequences of failure to pay. While offering a small grace period can help to maintain positive relations between management and residents, it must be made clear that ongoing failure to pay will result in fines that can eventually end with legal action.

Good HOA Management Starts With Creating a Good Place to Live

HOA leadership has a million details to deal with on a monthly basis! Fortunately, the right steps can ensure things run smoothly at your HOA. Of course, even the best management plans will be futile if you're not creating a safe, attractive environment that residents are proud to call home. If units or common areas in your HOA are showing signs of mold infestation, remediating the issue takes priority over everything else.

The best strategies for successful HOA management always include the best vendors. If you're nervous about mold in the community you manage, let your local SERVPRO® team help you get the problem handled. Offering 30 years of experience locally, SERVPRO has mold specialists standing by to help you create a clean, safe environment. Reach out today!