HOA board members in Aurora, CO, and beyond have a very difficult job. They have to run every aspect of their community’s day-to-day operations, finances, rule enforcement, and more, all as a volunteer donating their time to the community. Board members aren’t employed — they’re simply residents of the HOA that have volunteered and been elected as board members who run the very communities they live in. As such, not all board members know how to handle the many complex aspects of community association management. Luckily, HOA management firms can help guide and assist HOA board members in almost all aspects of community management.
1. Lack of Education & Experience
Since HOA board members are residents of the community who volunteer their service, they don’t always have the education and experience necessary to perform all required tasks at the start of their term. After all, these board members generally all have jobs, families, and outside responsibilities, and their skills in these regards may not always transfer to community management.
Luckily, board members can easily overcome this problem through resources such as online courses, training from more experienced board members, and assistance from their HOA management company. If your HOA board is incurring avoidable challenges due to one or several members’ inexperience, ask your community management company about available training courses and guidance to help them step up to the plate.
2. Enforcing Community Rules
While some homeowners may not be familiar with the rules and regulations associated with HOA homeownership, community guidelines are among the most significant factors in raising property values. Rules and regulations are adopted with the community’s values and well-being in mind; they are in place to assist residents from unintentionally neglecting their home’s exterior, which left unattended could affect property values for neighboring homes.
Enforcing these rules can be difficult for HOA board members, however. Whether a board member doesn’t want to penalize their friend or they’re bending the rules to suit their own interests, inconsistent enforcement is a pervasive issue amongst community associations throughout the country. Upset residents can also cause conflicts that, if not handled correctly, can escalate to personal attacks, physical violence, or lawsuits.
HOA board members should always remain steadfast in the face of these conflicts and apply the rules fairly and uniformly among all residents. If this is an area of concern for your HOA board, your HOA management company can take this task off your plate by enforcing your CC&Rs in a consistent, objective and timely manner, ensuring that your neighborhood remains looking its best while taking the pressure off of board members who may fear angering their friends or neighbors.
3. Proper Financial Management
Financial management can often be one of the most challenging areas for HOA board members. After all, accounting and financial management are specialized areas that require trained CPAs or accountants in most fields. However, this responsibility is left up to the HOA, even if they don’t have someone with a background in financial management on the board.
If you don’t have a board member with financial management experience, it’s always best to outsource your bookkeeping and other financial responsibilities to a trusted third party such as your HOA management firm. If your board fails to adequately handle the community’s finances, it could have devastating consequences such as shortage or bankruptcy. Inexperienced or untrained board members put your community association at risk for large financial penalties and upset homeowners. Luckily, most HOA management companies such as The Management Trust have financial experts on staff and offer HOA financial management either as an independent service or as part of their general community management services.
4. Evolving Legal Requirements
Federal, state, and local laws dictate how your community association runs, and when these laws change, your HOA needs to change with them. However, it can be difficult to keep up with ever-changing ordinances across all government bodies. This issue leads many HOAs to fall behind and unknowingly violate local laws or regulations. The board also needs to unfailingly act in the best interest of the community, or the HOA becomes vulnerable to a lawsuit claiming a breach of fiduciary duty.
In order to avoid any potential legal issues, board members should be thoroughly trained in all legal matters surrounding community associations and their daily operations. Your HOA management company can also offer advice about your state laws and regulations and keep you up-to-date with new legislation that affects your community. Your HOA management firm will also be responsible for implementing new association laws and enforcing them among residents. By hiring an HOA management company, you can ensure that your residents and board members live comfortably without worrying about out-of-date legislation or other legal trouble.
If your Aurora, CO HOA is in need of HOA community management services, trust the industry-leading experts at The Management Trust. We provide full-service community management as well as independent financial management services to best suit your Aurora community’s needs. To find out more about our wide range of community association management services, give us a call at 303-750-0994 or fill out our online contact form today.