Some Community Association Boards believe that they can manage a community on their own without help from third-party community management specialists. While they may be able to get some of the essential duties completed, the responsibility is a lot for a volunteer-based group to handle.

Here are 5 reasons why your community should work with a professional management company and say “no” to self-management.

1.  You Leave Yourself Open for a Lawsuit

Unless your Board is one that is insurance savvy, your Community Association may not have the insurance coverage that it needs.

Getting coverage like general liability and/or D&O insurance is important and having an association management company on your side can help to ensure that the coverage is complete.

2.  Little Understanding about Community Management

There isn’t really a standard course for how to professionally run a community. Each Association’s wants and needs are different, but having a management company which is familiar with the best practices of Association management can prevent:

• Overpaying on projects and general maintenance
• Misunderstanding your state’s Community Association laws
• Failing to follow legal procedures

3.  Financial Mismanagement

Association Boards are made up of members of your actual community. One of the main tasks of a Board is to collect assessments and other funds that are due to the Association. Some self-governed Boards may not feel comfortable trying to collect from their neighbors or simply are not familiar with the ins and outs of financial record keeping.  Unless your Board includes a CPA, there could be potential for costly financial errors.

4.  You Could Be Breaking the Law

Your self-managed Association could be breaking the law without the Board members even knowing it. There are several specific processes that need to be followed in terms of assessment collection, violation enforcement, notice requirements, and information disclosure. Getting any of these and other details wrong can easily put your Board Members on the wrong side of the law.

5.  A Neutral Party is Necessary

One of the biggest dangers of a self-managed Board is the lack of a neutral party during disputes between community members or when it comes to a complex community decision. The “our way or the highway” mentality can easily take hold and quickly turn a happy community into a disgruntled one.  A professional management company will help mediate between the Board and owners at large for the most acceptable resolution as allowed by the Association documents.

Goodwin & Company Helps You Avoid Management Missteps

DIY Association management is a dangerous path to take as a volunteer board. Having a management company help you take control is the easiest way to ensure that all of the legal boxes are checked and your community is well-covered for years to come. Contact Goodwin & Company today to find out how we can make your Association better.

 

Although your Community Association is the leading figure of control in the neighborhood, they are still a team of volunteers that lead normal lives. Association management can help them with the finer details of the community and handle the issues that go beyond volunteer qualifications.

However, not all management companies are created equal, and sometimes you could end up stuck in a contract that just isn’t working out. Here are four red flags that it’s time to start shopping around for a management team that will strive to meet your community needs.

1.  Current HOA Management is Unresponsive

Goodwinlent communication should be a core value to your management company. Responding in a timely manner to emails and phone calls, general inquiries, and having required information prepared to share with the community is essential.

If your management team fails to meet even these basic communication expectations, this should be a major red flag that something isn’t right. When signing a contract with a management company, make sure that there is no question about who the most reliable point of contact is, otherwise you may be facing some confused and irate vendors or community members.

2.  Hidden Costs Creep Up

The fee structure between your Community Association and management company needs to be crystal clear. If you sign a contract and then notice surprise fees and charges in the coming months, address your management team. If these hidden fees were something that was swept under the rug during negotiations, then it may be time to work with a management team you can trust.

3.  Project Completion is Slow or Nonexistent

Association management ensures that community projects and improvements are handled in a timely fashion. From large projects to smaller ones, your community manager needs to be able to complete their tasks promptly. Not doing so creates a strained relationship between the Board and community members.

Oftentimes, when project completion is slow-moving, it’s because a professional HOA management company was never hired to begin with. Sometimes, DIY HOA management can be successful, but usually, it’s best to leave it to the pros.

4.  Compliance Becomes Secondary

Your management company needs to remain on top of compliance situations in your community. The creation and distribution of violation letters and the supervision of compliance adherence need to be consistent and a key priority.

Goodwin & Company Helps You Make the Right Choices for Your Community

Community Association management is essential to the success of a community. Poor management can easily bring a successful community down. If you are a member of your Association Board and don’t feel like you are getting the most out of your management company, Goodwin & Company can help.

Contact us today to find out more about how our management approach directly addresses these common management issues.