For Home Owners' Associations, a property management company brings immense value. A reputable management company offers services that reduce the burden of an HOA. Wondering why you should hire a management company? This article tells you why, it shows the risks of self-managed HOAs and the benefits of using a property manager.
Does an HOA Need a Management Company?
An HOA does need a management company. HOAs are beneficial to every community they function in. But being on the board of an HOA is no easy task. There are countless things to do. These tasks may seem small, but they can be overwhelming. Even the smallest HOA can slowly take a lot of your time. You can save yourself stress by hiring a trusted property manager.
Why You Need an HOA Management Company
The average hours needed to oversee an HOA can be up to 20 hours a week. If you are on the board of your association, you will attest to the fact that this is a lot of time to spare. Especially when you have a full-time job to manage. An HOA management company can help you save the time necessary to attend to your duties. Other than saving you time, a management company has relevant experience. These professionals have most likely handled similar issues that your association may have. Your HOA needs a management company to help you with legal compliance. They know the inner workings of the law. They understand rules and regulations that must be obeyed. So there is no probability your HOA will break the law. Furthermore, an HOA management company has contact with vendors and insurance service providers — all of which you need.Another reason you need an HOA management company is because they cancel out favoritism. A company never puts a single individual ahead of the community. There is no fear of preferential treatment amongst residents.
What are the Risks of Self-Managed HOAs?
Communities with self-managed HOAs may experience some risks. Some of these risks are easy to manage, and others are more adverse. Some risk of self-managing an HOA includes:
1. Inefficiency
Managing an HOA comes with a lot of demands. Generally, volunteers may have good intentions. But this does not cancel the fact that they may not have the required experience. Duties like managing finances and resolving complaints can take a lot of time. And failure to manage these responsibilities will lead to lapses.
2. Lack of transparency
Accountability is a risk of self-managed HOA. To prevent this risk, your HOA needs a management company to help them make unbiased decisions. It is possible for volunteers to become self-serving. And this will lead to problems for the association. A company will protect your HOA from any prejudice.
3. Lawsuits
Self-managed HOAs do not have the legal knowledge of management companies. It is possible for them to break a rule by accident. While supervising an HOA, it is important to stay within the dictates of the law to avoid any legal actions.
4. Lack of a Mediator
If a clash of interests arises within the board, it will be hard to reach an unbiased agreement. This isn't the case with a management company. They know all decisions must be in favor of the entire association. By using a reputable company, your HOA is sure to enjoy better decision-making processes.
Benefits to an HOA Management Company
You enjoy certain benefits when you engage in the services of a management company. Some of these benefits are:
Financial Oversight
An HOA management company ensures your community gets better financial services. From lower settlements to increased home value to accurate financial reports. Companies that use the CINC's management software allow financial transparency for board members. There is no shadiness when it comes to the association's finances.
Expertise and Experience
Even with enthusiastic volunteers, one can't deny the experience a management company brings. Property managers have experience with legal matters, budgeting, and financial analysis. You can also count on them for maintenance, conflict resolution, etc.
Management Consistency
Board members of an HOA may not remain the same every other year. But a property management company will be consistent with your association. This consistency helps in management, budgeting, and reporting. With a company, there are no setbacks in record keeping or administration.
Economic Benefits
You can protect your investment by using a management company. A management company ensures a neighborhood doesn't fall into a deplorable state. Maintenance also saves an HOA from losing money to repairs and value depreciation. Furthermore, management companies make budgets with reserves for upgrades.
Let Evernest Manage Your HOA
Hiring a management company is an option every HOA should consider. A company takes on the full responsibility for the day-to-day running of your community. From administration to monitoring to finances. Property managers also look for ways to preserve your investment.Your HOA needs a property management company, and one company you can trust is Evernest. We offer excellent services for a reasonable fee. Contact us today! With our experience and skills, you rest assured your association is in good hands.