The average American has a 20% chance of living in a community that is part of a homeowner’s association (HOA). Being part of an HOA gives a person a sense of belonging to a community, in much the same way a church or other place of worship may. HOAs save homeowners the trouble of thinking about security, but they also place a certain level of responsibility on members. This includes monthly fees, attending meetings, and participating in policy creation.
Despite the numerous advantages of HOAs, a few reasons are still cited as criticisms. First, the monthly fee is too high. In addition, the rules and regulations imposed by the HOA may not be agreeable to everyone. Such rules mainly have to do with the general appearance of houses.
Creating a More Attractive Homeowner Association in Shelbyville
How can promoters of an HOA make it more appealing to homeowners? Is it possible to overcome the cited challenges?
The main complaint has to do with the monthly fees that add to other ownership costs. The best way to address this would be to itemize the cost-drivers that lead up to the final figure. If the HOA is operating as a non-profit, let it be known to all members. The final amount should reflect the amount and level of service the homeowners enjoy. For instance, an HOA providing a pool, clubhouse, cleaning, and common-area lighting should charge more than one that is only focused on security.
Homeowners Associations also need to be clear on how they intend to review their monthly fees. Make projections in advance, based on estimates of future service prices. This way, members know what they will be required to pay at least 24 months in advance.
Conflict Resolution Mechanism
Any HOAs must have a set way of addressing differences between members and the board. These mechanisms seek to de-escalate conflicts so that they do not end up in mediation, arbitration, or even in court because that costs the HOA money.
An HOA should have a sizable amount of money kept as reserve to take on emergency projects. Failure to do so can cause members to make extra monthly payments whenever unbudgeted costs arise. Frequent occurrences have a negative impact on the image of the company.
Hiring HOA Management Service
HOA board members may not be able to manage and operate the organization entirely on their own. Whether it be due to a sheer lack of time to commit or just a lack of prerequisite skills, running an HOA can be challenging for the board members alone. And if the community itself continues to grow, it can be practically impossible to self-manage.
Professional HOA management companies have the advantage of experience and resources to run HOAs. Management services have tried and true vendors providing the most value for money paid by the homeowner. They have the essential software to manage vendors, as well as give residents a dashboard for monitoring the value and requesting services to their homes.
Leveraging the services of a professional HOA management such as PMI Louisville may add a little premium to what homeowners pay, but it also increases the attractiveness of the HOA.
Hiring Independent Audit Services
As an HOA grows, so does the amount of money being handled every year. Members will eventually begin raising questions to the board members regarding how well the money paid in is used. To put members at ease, it is best to engage the services of an independent auditor whose opinion accompanies the annual report of the HOA.
If your Shelbyville HOA is experiencing growth pains, or need help with developing attractive membership incentives, contact us! We can help you improve the optics of your organization, streamline your operational efforts, and pave the way for a greater HOA success.