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.