If yours is a small community, probably the board of directors is doing a good job managing the work of the Homeowner’s Association (HOA). Things are usually otherwise. Board members are residents who make time for the HOA as required. While some may have experience, training, and credible expertise, a considerable number of board members just try to keep system afloat. Expectedly, this can lead to chaos. Below, you can learn more about signs that your community needs professional HOA management and how to choose the right company for the job.
Reasons to outsource HOA management
There are many telltale signs that your community should consider outsourcing the principal tasks of the HOA, and these include –
- Financial mismanagement
- Lack of experience of the board members
- Inability to enforce HOA rules and regulations
- Evident discrepancies in the management of available funds
- Delayed projects
- Lack of common area maintenance
- Evident ignorance of amenities
- Frequent squabbles within the board
The truth is most boards have issues handling HOA management, but some are better at resolving matters than others. If the signs are evident that the current board is unable to address the ongoing challenges, it is best to free the members from the extensive work and outsource the work to a reliable property management company. There are numerous companies that have worked for HOAs for decades and have the resources to offer comprehensive services.
Questions to ask when hiring property management firms
The board needs to initially decide the extent to which HOA management would be outsourced. For instance, the members may decide to keep in-house accounting but choose to get expertise for everything else, including administrative tasks. The next step is to make a list of questions for interviewing property management firms, which should include some of the following –
- How long have you been working for HOAs?
- What aspects of HOA management do you typically handle for other clients?
- How many clients do you have in this city?
- Do you have expertise in legal and compliance matters?
- What precisely can we expect from your team?
- Would you help us enforce the HOA rules?
- What are the USPs of your property management company?
- How do you bill your clients?
- What is the extent of tech use? What software or apps do you use?
- How do you plan to handle communication with the board?
With those questions and a comprehensive list of requirements, outsourcing HOA management doesn’t have to be complicated.
