Monthly Archives: February 2020

Why You Shouldn’t Risk HOA Self-Management

Some associations try to save money in their budget by opting out of working with a management company. While it’s commendable that these groups believe in their abilities to independently manage their own community, there are several issues that they are inadvertently at risk for without professional association management.

Here are some of the issues we’ve seen, and how our management team has been able to assist communities like yours.

Essential Insurance can Fly Under the Radar

Something as simple as overlooking insurance policies can be devastating to a self-managed HOA. In the past, we met with an Association that had been established for 40 years and was historically treated as a single-family home Association.

However, after reviewing their documents, we noticed that they were actually a townhome association. Apparently, the builder had started building duplexes and quadplexes but they weren’t selling, so he started building single-family homes to fill out the rest of the neighborhood but never updated the documents to reflect the difference in coverage.

This is concerning because the Association did not have any property insurance on the units they were supposed to be covering. If there had been a total loss incident, the Association and these owners would be out on their luck.

This community had been improperly insured for most of its existence and the Association had just now discovered this glaring problem with our help. Now they need to look at either having an attorney amend and clean up their governing documents, or, raise their dues substantially to accommodate their required coverages.

Had this issue been caught earlier, or, the Association worked with a professional management company from the start, not only could the neighborhood have been sufficiently protected, but their current homeowners wouldn’t be stuck paying higher dues.

Bookkeeping can Get Too Complex

With a professional management team on your side, the complex bookkeeping that comes with maintaining a community association is handled by them. With a professional management team, funds are deposited to the bank when they are received and recorded to the owner’s account at the same time.  Individual management of Association finances can quickly get behind or out of hand without a tried and true system in place.

A management team can help control all of the necessary checks and balances involved with accurate bookkeeping.

You Could End Up Breaking the Law

Every organized Association is responsible for following and understanding Federal, state, and local laws in place for their community. Letting things fly under the radar, even unintentionally, could result in your HOA breaking the law.

We’ve seen this happen in communities we’ve teamed up with in the past and were easily able to get their Association’s back on track with current laws and help avoid issues like potential lawsuits.

Even if your Board understands complex issues like ensuring all vendors sign W-9 tax forms, things like creating new association rules on the fly could easily be overlooked and become a problem. Whether your legal compliance issue is large or small, an association management team can help ensure every law is followed to the T!

Keep Your Association on Track with Goodwin & Company

If you know that your HOA needs help with managing its affairs, don’t wait until you’re neck-deep in lawsuits. Goodwin & Company is a management team that has the resources your Association needs to effectively and legally operate. Get in touch with us today to learn more about our services.


Are You Qualified to Lead on Your Board?

Most community members want to make a positive change within their Association. One of the most effective ways to take steps towards community improvement is by taking up the mantle as an HOA Board Member.

Typically, the only firm requirement to serve on your Association’s Board is to be a member of the Association, there are several skills that are key to properly serve your community.

Goodwinlent Communication Skills

As an HOA board member, communication skills are an absolute must! Your entire position revolves around communicating and debating ideas amongst your fellow board members, tenants, vendors, and even your association management team.

In order to serve your community in the best ways you can, you will have to be prepared to speak your mind, listen, and above all compromise for the good of your constituents.

“Can-Do” Attitude

The HOA board is a team of leaders working to make their Association the best place for residents living in its boundaries. There are no sitting ducks on this Board. If you want to be part of the cause, be ready to put in the hard work and commitment necessary to represent your association in the most positive light possible. While time investment is usually minimal, the Board is going to be your job away from work and should be valued as your home away from home. Possessing a consistently headstrong attitude will help you make the best decisions for your neighbors.

Sensible Enough to Ask for Help

Even if you’re an accountant, lawyer, or even property manager in your full-time job, there are inevitably going to be issues that come up that you do not have the knowledge to address. A good Board Member knows when to solicit help from the necessary professionals. You’re most likely not going to be equipped to face a legal issue or deal with vendor contract negotiations without knowledge of the details from prior years.

If you’re going to serve properly, you should always be open to getting help from the experts. Your Board has them on the sidelines for a reason. They are in place to help your Board succeed where it could easily falter.

Experience a Partner in Leadership With Goodwin & Company

If you want to serve, but perhaps don’t want to commit to a full-fledged Board position, consider volunteering for a committee.  This way you can still help better your community, while also learning the ropes of how it all operates before committing to a Board seat.  If you’re ready to make a difference within your planned community, Goodwin & Company is ready to help. We can help you stay compliant with HOA legalities, fee collection, regulation enforcement, and more. When your Board works with Goodwin & Company you gain a partner that helps you raise up your community.

Reach out to us today to learn more about our services and find out how to get our team on your side.