Homeowners associations (HOAs) often get a bad reputation. While some HOAs are indeed poorly managed, most enrich the local community by boosting the local real estate market, and improving the neighborhood. Usually, when people are dissatisfied with their HOA, it's because of poor management practices.
The principle behind HOAs is that they're run by local residents, for local residents. However, an HOA board made up of volunteers may not have the effective management qualities required to run a successful HOA. The solution is to hire a professional association manager.
Read on to find out how professional management could help your HOA.
Fair and Impartial Rules
The HOA is supposed to be impartial, so when key management roles are made up of local volunteers, there's huge potential for controversy. The board may be accused by residents of running the HOA for their own benefit. These kinds of accusations are not always unbiased; even the most altruistic volunteer boards can be accused of favoritism.
Bringing in an association manager alleviates these concerns, as a professional manager is a neutral and impartial 3rd party. They'll ensure the HOA rules don't unfairly favor any group, and they'll make sure the rules are fairly enforced.
Effective Maintenance and Upkeep
The HOA is responsible for the maintenance and upkeep of common areas. Successful association management needs to be efficient because excessive spending on repairs will quickly eat into the budget and erode confidence in the HOA management.
A professional manager with association management skills will set up a preventive maintenance schedule, ensuring the HOA spends as little as possible. This approach involves doing proactive renovations, so things don't break. A professional manager has a phone book full of contractors, and they'll leverage this network to keep common areas in perfect condition.
Responsible Financial Management
The most important aspect of HOA management is competent and transparent management of community finances. It's not unheard of for HOA boards to embezzle from community funds; for example, the Associated Press reported on a Florida HOA board that stole millions from residents.
The last thing you want is for your HOA to be accused of this kind of fraud. If your HOA isn't transparent about how it's spending funds, residents will rightly be suspicious. Even small accounting errors can lead to mistrust and even criminal investigations.
Don't take a chance on amateur accountants, and instead work with a professional management company. An experienced associated manager can account for every single cent, and they'll demonstrate this via periodic financial reports.
You Need a Professional Association Manager
For an HOA to thrive and enrich the local community, you need an effective association manager. A good manager is fair and honest, and they get the most value out of community funds. Management can make or break your HOA, so don't take a chance on anyone without professional management experience.
Are you looking for a skilled and trustworthy HOA manager in Tacoma? PMI Cascade is here to help you get the most out of your HOA budget. We'll use our real estate knowledge to enrich your local community. Contact us today to learn more about how the power of PMI could help your neighborhood be the best it can be.
