4 Best Practices for Effective Community Management

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When searching for HOA management firms for your Tacoma, WA, neighborhood, it’s important that you find one that has what it takes to enable your community association’s success. Finding good HOA management companies is about more than who can simply get the job done. When it comes to something so personal, you need a management firm that truly understands your local community and what its residents need to thrive. If your community association board is searching for HOA management companies, make sure they follow these four best practices for effective community management.

1. Transparency and Accountability

Transparency and accountability are both crucial components of effective community management. Homeowners want to feel confident that their HOA board is making good decisions on their behalf, and your HOA management company should help facilitate this.

One way to ensure transparency is by providing homeowners with easy access to important information and updates. This can include the community’s bylaws, rules and regulations, meeting minutes, and financial reports. State law often requires that you keep written records of these, so your HOA manager should assist you in these recordkeeping and management services to ensure you’re always in compliance with local regulations. 

Your HOA management firm should also be able to help you provide this information to homeowners. By publishing these records to an online portal or other central location, your community manager can make residents can feel more involved and informed about the operations of their community without extra effort on your part.

2. Effective Communication

Open and effective communication is vital for successful community management. It allows for collaboration, transparency, and trust between homeowners, the HOA board, and the HOA management company. 

All reputable HOA management firms should reply to any communication right away. Generally, your community manager should return any phone calls or emails within 24 hours, and you should receive regular updates from them about your community operations.

They should also help you communicate more effectively with your residents, including writing newsletters, posting documents on the community website, and maintaining online portals. The community manager is the first point of contact for residents, so they should feel comfortable in speaking to the community manager and feel confident in the HOA management firm’s ability to update them on the latest community happenings.

3. Checks and Balances

Community management is a complex operation that involves handling finances, enforcing rules, and making decisions that can significantly impact residents. As such, to ensure fairness and transparency, your HOA management firm should have an internal system of checks and balances in place.

This system can include two-step financial verification, a customer service buddy system, and more. By having these checks and balances in place, your community management team can avoid any fraud or unethical behavior, ensuring your assets are protected. It also helps build trust and confidence between HOA management companies and their board.

4. The Right Community Manager

One of the most critical decisions for any community is selecting the right community manager. Each HOA has its own unique dynamic, and your HOA management company should pair you with an individual whose professional style fits your neighborhood’s needs.

At The Management Trust, we have a diverse team of employee-owners who live in the same areas they manage, making them uniquely equipped to understand the needs of local residents. We pair all of our communities with a reliable point of contact, ensuring that they always have a familiar face that they can reach out to and trust for any questions, concerns, or needs.

If you want a community management partner that will engage residents and boost your HOA’s success, look no further than The Management Trust. We’ve been an industry leader for over 30 years, with more than 1,500 communities served nationwide. To learn more about our full range of community management services for Tacoma, WA, HOAs, call The Management Trust at 253-472-0825 or fill out our online contact form today.

Helpful Training Tips for New HOA Board Members

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As a newly appointed member of your Aurora, CO, HOA board, you may feel excited and a little overwhelmed at the same time. After all, you now have a significant role in shaping and managing the community you live in.

While being an HOA board member can be a rewarding experience, it also requires a certain level of knowledge and skill to perform your community management duties effectively. If you’re a new HOA board member looking to learn the ropes, keep these five tips in mind to give you a head start in your training.

Familiarize Yourself with the Vocabulary

One of the first things you should do as a new HOA board member is to familiarize yourself with the vocabulary used in the community management world. While you may be familiar with some terms like “assessment” and “governing documents” as a homeowner, other terms may sound unfamiliar to you and are used exclusively by board members in the course of their administrative and financial duties. However, these terms play a crucial role in the functioning of your HOA. Understanding them and their implications will help you communicate and make informed decisions as a board member.

To work more effectively, you’ll also need to familiarize yourself with the ins and outs of who does what in your association. Having a thorough understanding of everyone’s roles and responsibilities will help you navigate through your personal responsibilities as an HOA board member. The more you know about how your community association is run, the more confident you will feel in making decisions that impact your community.

Learn Procedural Guidelines

Most new HOA board members are excited to get started in their new roles and begin making the changes they want to see in their community. However, as a governmental body, you’ll need to abide by all procedural guidelines and ensure you’re upholding your fiduciary duty.

To ensure this, familiarize yourself with all of your homeowners association’s procedural guidelines. This includes board meeting frequency, agendas, approvals, and budgetary decisions. Each aspect of HOA management, for the most part, must follow the rules outlined in your community’s governing documents. While you may be excited to jump into your new role, you’ll need to be familiar with the guidelines to follow and ensure you uphold them at all times.

Consult the Community Associations Institute

The Community Associations Institute (CAI) is a national organization for HOAs that offers educational programs, publications, and online resources. They are a leading source of information and advice for HOA residents and board members, with educational services dedicated to helping you run your community more effectively.

As a new board member, CAI resources can help you understand the intricacies of your role, educate you on best practices, and provide valuable insights for effective HOA management. The courses offered by CAI cover topics such as financial management, governance, and community operations, providing a comprehensive understanding of all aspects of HOA management.

Keep Learning

Homeowners associations and the laws that govern them are ever-evolving, so being an effective board member requires constant learning and staying updated on industry trends and best practices. To enhance your performance as a board member, both initially and long-term, attend educational seminars, conferences, and workshops whenever the opportunity presents itself.

Additionally, try to keep up with the latest technology and industry developments. New automation tools, online voting systems, and communication platforms can help you streamline processes and improve communication within your community. Not only can this make your job more efficient, but it also helps improve resident satisfaction and the overall success of your HOA.

Ask Your HOA Management Company for Help

As a new HOA board member, you may have a lot of questions and concerns. If your community works with HOA management companies, never hesitate to ask them for help. Your management team has a wealth of experience in the community association industry and can guide you on the best practices and procedures for effective HOA management.

Some HOA management firms may also provide training and educational resources for new board members, such as webinars and workshops. They can also assist in reviewing governing documents and advising on financial matters, making it easier for you to handle your other responsibilities as a board member.

If you’re an HOA board member needing guidance on how to best enable your HOA’s success, look no further than The Management Trust. We can help take some of the responsibility off your plate and manage everything from financial services to vendor coordination. This allows you more time to engage with community members and focus on big-picture decisions, optimizing your community association management for maximum success. To learn more about how The Management Trust can help your Aurora, CO, community thrive, give us a call at 303-750-0994 or fill out our online contact form today.

3 Practical Approaches To Enforcing Your Community Association’s Rules

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One of the most challenging aspects of being a Tacoma, WA, HOA board member is enforcing all of the community rules and regulations. Although it may not happen often, when a homeowner violates a community rule or bylaw, the board must address it swiftly and promptly. 

Handling such sensitive subjects can be tricky, as the enforcement must be done in such a way that it effectively deters future violations while remaining fair and legally compliant for all residents. If you’re having trouble handling rule enforcement in your Tacoma, WA community association, here are three practical approaches you can try.

1. Do It Yourself

The most straightforward approach to enforcing the community association’s rules is by taking the DIY route. This approach involves the board members taking matters into their own hands and rectifying the situation without express homeowner approval. Some governing documents, for example, give boards the authority to repair, maintain, or restore any changes made to a property without authorization. 

However, this approach generally isn’t recommended due to the potential legal liability. Even if your governing documents permit these actions, the homeowners may threaten legal action when confronted with this type of remedy, or they may even become aggressive or violent in person. For these reasons, it’s best to handle things bureaucratically whenever possible.

2. Get a Court Order

HOA boards that want to do everything by the book, no matter how time-consuming or costly, tend to opt for injunctive relief. Injunctive relief is a legal remedy that involves seeking a court order to prevent a homeowner from violating a rule or to force them to comply with it.

One of the biggest advantages of seeking injunctive relief is that it sends a strong message to the violator and to the community as a whole. This approach also takes the burden off of board members and leaves it in the hands of professionals.

However, seeking injunctive relief can be a lengthy and expensive process. It requires hiring an attorney and going through a legal procedure, so it should generally only be considered when other methods have failed or if the violation is causing significant harm or disturbance to the community.

3. Issue Fines

One of the most popular options for enforcing community association rules is fining. This involves imposing a monetary penalty on homeowners who violate the HOA’s rules and regulations. The amount of the fine is typically determined by the severity and frequency of the violation, and it’s sometimes pre-specified in the community’s bylaws.

Issuing fines is often an effective method of discouraging violations. The fear of receiving a violation can be a powerful motivator for residents, and any revenue generated from fines has the advantage of being able to be used for community improvements and maintenance, benefiting all residents.

However, issuing fines can have legal complications if not done properly. It’s important to establish a clear and fair fining system that includes proper documentation, communications to the homeowner, and full transparency every step of the way. 

Enforcing your community’s rules can be a tedious task, but it’s a necessary one. If you feel you need guidance on or assistance with HOA rule enforcement, speak to an experienced HOA management company such as The Management Trust. With more than 30 years in the industry and over 1,500 communities successfully managed, we have the expertise to guide you in all aspects of community association management. To find out more about our comprehensive community management services, give The Management Trust a call at 253-472-0825 or fill out our online contact form today.

Everything Your Community Association Needs To Know About HOA Executive Sessions

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An integral part of the smooth operation of any Aurora, CO community association is meetings. HOA meetings foster a strong sense of community and help residents become more engaged in their community association. They’re also a functional necessity, as this is when all of the decisions that most significantly impact your HOA are made.

Another key reason for meetings is to ensure transparency between the HOA board and residents. However, if you’re part of a community association, one type of meeting that may seem shrouded in mystery is the executive session. These closed-door meetings may leave you with more questions than answers if you’re a resident or new to your HOA board, but luckily we’ve put together this guide to share everything your community association needs to know about HOA executive sessions.

What Are HOA Executive Sessions?

HOA board meetings are an important part of the community management process. At these meetings, the board will discuss and vote on various matters related to the HOA, such as budgeting, assessments, rules and regulations, and other matters. There are two primary types of HOA board meetings — regular sessions, which are open to all HOA members, and executive sessions, which are private meetings of the board.

Executive sessions are meetings in which confidential decisions are discussed and made. These meetings are not open to the public and are attended only by board members. These meetings may cover legal issues, delinquent payments, internal committee problems, and other serious and private matters.

Who Can Hold Executive Sessions?

All states allow HOA boards to hold executive sessions, so all community associations are eligible to hold them. However, the specific guidelines for when executive sessions are permitted vary from state to state. 

For example, California gives HOA boards a broad scope of when executive sessions can take place. By contrast, Florida only allows executive sessions in two instances: when discussing litigation or when discussing personnel matters. If you’re unsure of your state’s guidelines for when you’re able to hold executive sessions and what’s allowed to be discussed, consult with your HOA management company for guidance.

What Is Discussed at Executive Sessions?

State laws and your HOA’s governing documents dictate what’s allowed to be discussed during executive session meetings. However, these meetings are generally reserved for private and confidential matters, including litigation, contracts, disciplinary action, delinquencies, personnel matters, and foreclosures.

The main goal of any executive session is to address any issues or topics that require discretion. The private nature of these meetings allows the board to make informed decisions for the benefit of the community while protecting sensitive information that may not be appropriate for an open forum.

Are HOA Executive Sessions Open to All Homeowners?

Regular board meetings are typically open to all HOA residents in an effort to promote community, engagement, and transparency. However, executive sessions are not open to members of the HOA and are typically reserved only for board members.

If desired, board members can invite relevant third parties, such as the association’s lawyer or HOA management company, to these meetings to consult. In specific instances, individual homeowners may be invited to attend the executive session if it pertains to them. For example, a resident may request to meet with the board members in an executive session to discuss their disciplinary action, unpaid fees, or pending foreclosure.

HOA board meetings can sometimes be a full-time job in and of themselves; handling the many other aspects of successful community management can be overwhelming and even impossible if your board is small, inexperienced, or otherwise just busy. Professional HOA community management is beloved by community association board members across the country because it lightens the load on Aurora, CO, board members and allows you to focus more of your time and energy on your community’s overall well-being — including executive sessions. If your community association could benefit from a professional HOA management company, call The Management Trust at 303-750-0994 or fill out our online contact form today. We’ve been one of the nation’s leading HOA management firms for 30 years, and we’d love to help your community thrive as well.

community management

Taking a Look at What Defines Modern Community Management

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Community management among HOAs in Tacoma, WA, and nationwide has come a long way in recent years. With the rise of technology and the ever-changing needs of today’s residents, traditional HOA management practices are being revolutionized by modern approaches, leading to better communication, increased customer satisfaction, and more efficient processes. 

While there are countless factors in the evolution of the community management industry, we’re taking a closer look at what defines modern community management and how it has transformed the way HOAs are managed nationwide.

The Emergence of Modern HOA Management

Homeowners associations as a concept are only about a century old, with the first HOAs being traced back to the early 1900s in Pasadena, CA. Although they were initially slow to gain traction, HOAs boomed in the 1950s and 1960s, along with Southern California’s new home construction following World War II.

Homeowners associations were a solution for several key needs, the largest of which was the lack of municipal development in the area. By establishing HOAs, residents could control their new communities and achieve a standard of living that cities could not guarantee.

Today, an estimated 61 percent of new U.S. housing is within an HOA. Modern residents recognize the value of HOA living, with community associations consistently preserving property values and maintaining a high standard of living for their residents. As Americans have embraced HOAs, community associations have continued to grow larger, and these communities have, in turn, turned to professional HOA management companies to sustain themselves and thrive with a large population to manage.

To effectively manage such large communities across the country, successful HOA management companies have turned to a couple of key tools to improve resident satisfaction and overall quality of life.

Five-Star Customer Service

One of the tools that HOA management companies utilize is five-star customer service. In today’s competitive market, residents expect the best, and community management companies are constantly striving to improve their customer service to match and exceed resident expectations.

With an emphasis on creating a positive and welcoming community, modern HOA management firms understand the importance of excellent customer service in retaining satisfied residents. Today’s community managers must provide not just the basic necessary services but also quick and thorough follow-up, advice, guidance, and proactive anticipation of future needs.

Modern HOA management also needs to be completely personalized. Every community is unique, and community managers must therefore adapt to the specific needs and preferences of each community. By taking the time to understand the community and its residents, managers can provide tailored solutions that improve the overall experience for residents.

At The Management Trust, we have a team of dedicated employee-owners who live in the same communities they work in. This makes them acutely aware of each region’s problems and preferences and uniquely motivated to solve them proactively and efficiently. Whereas other HOA management companies simply react to their residents’ requests, we anticipate the needs of our residents and strive to think differently and do more for our communities every day.

Convenient Electronic Tools

With an increasing number of homeowners relying on technology to get things done, many HOA management companies are opting to modernize operations to get ahead of the competition and provide a better experience for members. Convenient and efficient digital tools not only make the job easier for community managers but also free up more time and resources to allow them to focus on providing high-quality services to residents.

One of the most common examples of these implementations is online community resources such as websites and portals. Community websites that are updated and user-friendly can keep residents updated on all the latest neighborhood happenings, creating transparency and acting as the first line of defense against any resident questions. Member portals are also hugely beneficial, allowing residents to log into personal accounts and handle administrative tasks such as paying dues, updating contact info, reviewing a work order status, or submitting questions to their HOA management. 

SMS communications solutions further elevate community management services by enabling 24/7 communication with residents. Smart text-messaging helpers such as The Management Trust’s Trusty provide a convenient way to get answers to basic homeowners association inquiries. With Trusty, residents can receive community notices, manage payments, submit maintenance requests, and more right from their phones at any time or day of the week.

If you want a modern HOA management partner that will prioritize resident satisfaction and boost your community’s success, look no further than The Management Trust. We’ve been an industry leader for over 30 years, with more than 1,500 communities served nationwide. To learn more about our full range of community management services for Tacoma, WA, HOAs, including 24/7 resident communication, call The Management Trust at 253-472-0825 or fill out our online contact form today.

How HOA Boards Can Build and Sustain Healthy Relationships with Community Members

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Building a strong and sustainable Aurora, CO, community relies heavily on the relationships between the HOA board and its members. These relationships are built upon trust, open communication, and a shared understanding of community goals and priorities. However, achieving and maintaining healthy relationships with community members is easier said than done.

While successfully building personal connections with your members can preserve property values and foster a stronger sense of community, many residents have a skeptical view of community management that must be overcome. If your HOA board strives to build and sustain healthy relationships with more of its community members, here are some key steps to doing so.

Be Transparent

Transparency is crucial in any relationship, and the one between HOA boards and their members is no different. Be open and honest in all actions and decisions to show residents that they can trust you to act on their behalf. The more community members feel like they’re in the know about important information and decision-making processes, the more likely they are to trust and support the HOA board.

To promote transparency, encourage all members to attend open-session board meetings. When possible, make as many board meetings open to all community members as possible. You can also use digital conferencing tools like Zoom to make attendance convenient and encourage greater turnout. When community members feel like they’re being heard and valued, they will, in turn, value your HOA board members.

Prioritize Clear Communication

Clear, convenient, and constant communication is commonplace among virtually every organization your residents come into contact with. From SMS updates to emails, residents receive moment-by-moment notices for every minutiae of their daily life. To promote healthy relationships within your HOA, you can’t let your community association fall behind in this regard.

If you utilize an HOA management company, they’ll likely have tools that you can utilize to improve community communication. At The Management Trust, we offer a smart text-messaging helper called Trusty, which provides a convenient way to get answers to basic homeowners association inquiries. With Trusty, homeowners can receive community notices, manage payments, submit maintenance requests, and more right from their phone, 24/7. By receiving clear and constant electronic communication, residents will feel more involved in their community, fostering stronger relationships.

Showcase the Full Value of Assessments

Homeowner assessments are a contentious topic, and homeowners can quickly become dissatisfied or even belligerent if they feel that their dues are not going toward worthwhile community improvements. To keep residents satisfied and foster improved relationships, clearly communicate with the community about how the assessments are allocated. Highlight the projects and improvements made possible by these funds, and explain how they’re bettering the community. 

It can also be beneficial to make residents aware of any cost-saving measures taken by the board. This could include negotiating better deals with vendors or implementing sustainable solutions that can save residents money in the long run. By showcasing careful management and wise use of assessments, community members may have a better understanding and appreciation of the value these funds bring to the community.

Practice Patience

When it comes to HOA management, patience is a crucial trait for handling conflicts and disagreements within the community. Conflicts are inevitable in any neighborhood, and it’s the board’s responsibility to address them and find resolutions that are fair for all parties involved.

Rather than reacting emotionally or making quick decisions, take the time to listen to all parties involved, gather evidence where necessary, and implement a fair, effective solution. Remain calm and empathetic, but maintain your fiduciary duty of doing what’s best for the overall community.

It’s always a good idea to learn the ins and outs of the community’s rules and regulations so you can explain the reasoning behind decisions, as well. If given solid reasoning, residents are more likely to respect the board’s decision and not foster negative feelings during future interactions.

If you want to spend less time resolving disputes and more time focusing on your Aurora, CO, community’s big picture, you’ll benefit from an HOA management company. HOA management firms handle the nitty-gritty of daily operations, from vetting vendors to collecting dues, so you can spend more time on the important stuff.

If you want resident-oriented HOA management services, look no further than The Management Trust. We’ve remained one of the premier HOA management companies in the country for more than 30 years, with more than 1,500 communities served nationwide. To learn more about our full range of HOA management services for Aurora, CO, HOAs, call The Management Trust at 303-750-0994 or fill out our online contact form today.

Is Your Community Experiencing Low Homeowner Engagement? Let Us Help!

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In today’s fast-paced environment, it’s easy for Tacoma, WA, homeowners to become disconnected from their community. With busy schedules and endless distractions, it can be challenging to stay engaged in the neighborhood and stay up-to-date on everything that’s happening.

However, low homeowner engagement can have a significant impact on the overall well-being and success of your community. From neglecting important decisions to a general lack of community spirit, low engagement can lead to a wide range of issues that decrease resident satisfaction. If your HOA is suffering from low homeowner engagement, here are several simple strategies that can help boost interaction and create a thriving community.

Send Out Surveys

One of the most effective ways to encourage homeowner engagement is by sending out surveys to assess their concerns and needs. Homeowners don’t always have time to go to board meetings or otherwise go out of their way to participate. By generating and disseminating surveys directly to homeowners, you make it easier for them to share their thoughts and, therefore, make it more likely that they will do so.

Surveys can provide valuable insights into what matters most to residents, identifying areas that need improvement. They are also a great way to gather feedback on past and future community events, services, amenities, and more. Surveys also give homeowners a voice and make them feel heard, which can go a long way in fostering a sense of community.

Encourage Volunteering

Volunteers are the backbone of any community, but this is especially true of homeowners associations. Virtually every aspect of HOA operations is handled by volunteers, including your HOA board.

However, while serving on the board is a great way to get involved, it’s a big commitment that not every resident has the time or willingness to take on. To encourage homeowners to test the waters of community engagement, encourage them to join specific committees.

By giving homeowners a chance to contribute to the well-being of their community through these committees, you are fostering a sense of pride and ownership in their community. Volunteering can also help bring neighbors together, creating new friendships and strengthening existing ones. Whether it’s a big project or a small task, having a sense of purpose and contributing to the community in some way can be incredibly fulfilling for residents and give them a new outlook on the importance of community engagement.

Show Appreciation to Volunteers

While recruiting new volunteers can be immensely helpful, it’s important to recognize and appreciate the existing volunteers who currently allow your community to run smoothly. Thanking volunteers for their contributions can go a long way in boosting morale and encouraging continued engagement.

A thank you note or a small token of appreciation can make a significant impact and will be greatly appreciated. You can also highlight volunteers’ efforts on the neighborhood’s social media page, online portal, or newsletter to publicly recognize them and thank them for their dedication. Showing public appreciation not only acknowledges the individual’s efforts but also inspires others to get involved.

Create a Sense of Community

Another great way to increase homeowner engagement levels is by creating a stronger sense of community. It’s essential to provide opportunities for neighbors to get to know each other and form connections, and this can be easily done through regular community events such as barbecues or game nights.

Community events offer a chance for homeowners to voice their opinions and concerns in a casual setting. By creating a welcoming and inclusive atmosphere, residents are more likely to feel connected and engaged in their community.

Invest in Digital Tools for Easy Access

Many community associations now use web portals to allow residents to easily access important information such as meeting minutes, financial reports, and other documents. They serve as a great central point of information and can provide residents with non-urgent updates in lieu of emails or other direct communication.

This digital approach saves time for both homeowners and community leaders, making it easier to communicate and engage with residents. It also provides a more convenient and modern way for homeowners to access community information, which makes them more likely to do so. The more residents are aware of what’s happening in their community, the more likely they are to share their thoughts and participate in HOA events, creating a more engaged community.

Utilizing HOA management firms with modern tools for resident communication, such as The Management Trust’s Text Trusty, will increase resident satisfaction and encourage greater future engagement by providing instant answers to any questions or discrepancies residents may have.

If you want a community management partner that will engage residents and boost your HOA’s success, look no further than The Management Trust. We’ve been an industry leader for over 30 years, with more than 1,500 communities served nationwide. To learn more about our full range of community management services for Tacoma, WA, HOAs, including 24/7 resident communication, call The Management Trust at 253-472-0825 or fill out our online contact form today.

Short-Term HOA Home Rentals in Colorado: What HOAs Need To Know

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With its picturesque landscapes, beautiful mountains, and a wide variety of outdoor activities, Colorado has become a popular vacation destination for travelers from all over the world. With the rise of easy-to-use platforms like Airbnb and VRBO, short-term rental properties have seen a huge surge in popularity, offering tourists a more unique and comfortable housing experience compared to traditional hotels.

While this may be good news for Aurora, CO, homeowners looking for extra income, it can also bring challenges for local homeowners associations. If your HOA board is feeling lost or overwhelmed when it comes to navigating this evolving landscape, keep reading to learn everything you need to know about short-term HOA home rentals in Colorado.

The Popularity of Short-Term Rentals

In just the past five years, there has been a significant shift in the way we travel and the options available to us. Whereas hotels and motels were previously the only lodging options available to travelers, the rise of platforms like Airbnb enabled private citizens to open up their homes for short-term stays. While this has become a great source of income for some property owners, it has also caused tangible problems for the HOAs they live in.

As tourists flock to popular destinations like Colorado, the rise in short-term rentals presents a unique challenge for HOA board members and community management. Community associations were not designed to handle the complexities of governing hotel-like transactions within private residential communities, and the use of vacation rentals is raising concerns over security and privacy, as well as potential violations of governing documents.

While some property owners are excited about the income potential, others are wary of strangers coming and going from their neighborhood largely untracked. As such, HOA boards must act quickly to determine if their current governing documents are sufficient to regulate the growing use of short-term rentals. While some HOAs may have specific rules or prohibitions against short-term rentals already in place, all community associations need, now more than ever, to stay informed and potentially seek professional advice as to how your board can best address this issue.

What Existing HOA Policies May Apply 

HOAs in Colorado may already have existing policies that address short-term rentals. These can include rental restrictions, guest policies, and rules surrounding nuisances and disturbances.

Most HOAs have restrictions already in place regarding the number of guests in a unit or the maximum occupancy permitted. Many HOAs also have detailed policies about rentals and what constitutes the leasing of a property. This can sometimes be as broad as the exchange of money for lodging, which would make short-term rentals a violation of your HOA rental policy. If your community doesn’t have these restrictions in place, it may have rules regarding noise levels or other disturbances. These clauses tend to be fairly generic, so it may be an effective way to police short-term rentals that are disrupting the neighborhood.

Whether or not you have relevant policies already in place, it’s important for HOAs to review their governing documents and make sure they are up-to-date and in line with current laws and regulations. Community associations should also review their insurance policies to ensure they provide adequate coverage for short-term rental activities and add coverage or amendments if needed.

What Options Do You and Your HOA Have?

HOAs have several options when it comes to addressing concerns around short-term rentals. One option is to update your governing documents to completely ban short-term rentals within the HOA. While this may appease some homeowners who are concerned about the privacy or safety of the community, it may also negatively affect homeowners who rely on short-term rentals for income.

Another approach is to allow short-term rentals with certain restrictions and guidelines in place. This can include requiring homeowners to disclose and register their rental properties with the HOA, as well as requiring ID to be collected from each renter before they take occupancy. This helps the HOA board monitor guests and help trace the responsible part if damage, excessive noise, or any other issues arise during their stay.

Community associations can also try to prevent future listings by gathering relevant information from buyers at the time of purchase. You can add a section to purchase applications that asks whether the buyer has listed property on a short-term rental site within the last 24 months. Many people purchase properties with the sole intention of renting them out this way, so these additions can help weed out these types of buyers during the purchasing process.

Short-term rentals in Colorado present opportunities for homeowners, but they also present challenges for HOAs. As the vacation rental market continues to evolve, it’s important for community associations to stay informed and be proactive in addressing any potential issues that may arise. If your HOA board needs assistance in navigating the world of short-term rentals and the local laws and regulations surrounding these, a professional HOA management firm can help.

At The Management Trust, we can help you stay up-to-date on local laws, advise on bylaws as necessary, and enforce rule breaches and fine collections. We provide day-to-day community management services on your behalf, so you have more time to focus on the bigger picture and make important decisions for your community’s health and happiness. To learn more about how The Management Trust can help your community thrive, give us a call at 303-750-0994 or fill out our online contact form today.

Breaking Down the Pros and Cons of Lowering HOA Fees

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One of the pain points for homeowners when searching for the right Tacoma, WA, HOA is annual fees. Most homeowners want the ideal scenario of low HOA fees with high standards and services, but this is almost never the attainable reality.

The truth is that there are pros and cons to low HOA fees, so it’s important to assess what will work best for your unique HOA. While low dues keep residents happy in the short term, it also reduces your ability to maintain and improve your community association over time.

While lowering HOA fees to attract or appease homeowners may seem tempting, it’s important to understand the pros and cons of lowering HOA fees before making such an important decision.

Are Low HOA Fees Good?

At first glance, low HOA fees may seem like the ideal solution. All homeowners want to save money, so offering lower annual fees can make your community more attractive to potential buyers. 

However, as with most cheap things, you typically get what you pay for. While low HOA fees will leave residents happy in the short term, it can cost your community much more in the long run by reducing your HOA’s offerings and leaving residents unsatisfied with their quality of life.

Pros of Low HOA Fees

As mentioned above, the obvious pro of low HOA fees is the short-term satisfaction of current and prospective homeowners. Property owners already have a lot of expenses to worry about, so having lower HOA fees will please residents and attract new buyers. After all, who doesn’t like saving money?

However, this happiness is only ever short-term, as the lacking finances will inevitably result in a lower standard of living. From neglected amenities to a lack of reserve funds, there is a wide range of negatives that will start to appear as the HOA fails to collect sufficient fees.

Cons of Low HOA Fees

Homeowners often don’t understand everything involved in running a successful HOA, so while they may rejoice at the idea of paying low annual fees, they’ll soon begin to complain once their expectations for quality of living aren’t met. When insufficient fees are collected, there are three main issues that will begin to plague your HOA: inadequate maintenance, surprise assessments, and even legal trouble.

One of the primary purposes of HOA fees is to cover the cost of maintaining common areas and amenities within a community. Lowering annual fees can result in inadequate funds for essential maintenance and repairs, leading to a decline in the community’s appearance and, therefore, a decline in property values.

Having lower annual HOA fees can also result in surprise costs for homeowners later down the line. Part of the HOA’s annual fees are allocated to reserve funds for any emergencies or unexpected major expenses. If insufficient fees are collected, the HOA may have to issue a special assessment to homeowners to cover any sudden costs. This can cause significant financial stress for some homeowners and generally decreases resident satisfaction community-wide.

Finally, low HOA fees can cause legal trouble for your community association. HOAs are governed by federal, state, and local regulations that must be adhered to. If lowering HOA fees results in cutting corners or skimping on essential services, it can put the community association at risk for legal penalties. To ensure that you’re meeting any legal requirements for your area, it’s always best to invest in a professional HOA financial management firm that can assist you with determining appropriate and sufficient fees.

At The Management Trust, we can assist Tacoma, WA, HOA boards with handling difficult tasks such as issuing assessment increases. While executive decisions always come from the board, we can execute those plans and implement any changes that need to be made on behalf of the community association. More than 1,500 communities throughout the country trust The Management Trust to get the job done right, including dozens throughout the Tacoma, WA, area. To find out more about our full range of available HOA management services, call The Management Trust at 253-472-0825 or fill out our online contact form today.

Important HOA Financial Management Tips for Funding HOA Reserve Components

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Aurora, CO, HOAs are responsible for managing the day-to-day operations and long-term financial health of their community. This includes maintaining and improving the common areas and amenities for the benefit of all residents.

To do this, community associations must carefully budget and allocate funds for various important expenses, including reserve components. If you’re an HOA board member looking to learn more about reserve components, keep reading to learn everything you need to know about HOA reserve components and important financial management tips for funding them.

What Are Reserve Components?

Reserve components are generally considered to be any significant, long-term improvement or new addition to your HOA budgeted for in your association’s reserve study. A general rule of thumb is that a community improvement is one that has a lifespan of more than a year and will add value to the property.

Examples of reserve components include the building of new structures or amenities. This can be something as small as a mailbox or as large as a new building or community swimming pool. Reserve components can also refer to significant upgrades and repairs of existing structures, such as upgrades that enhance community safety.

Why Do You Need to Fund Reserve Components?

Community improvements are an inevitable aspect of HOA management. As time progresses, your common areas and amenities will wear down or become outdated and need significant repairs or replacement. This is true even if you’re performing yearly maintenance or minor repairs along the way.

This is a crucial aspect of maintaining long-term community well-being and resident satisfaction. Therefore, having a well-managed and adequately funded community association is of the utmost importance. By understanding the difference between routine maintenance costs and capital improvement expenses — and why the latter are required — HOAs can effectively organize their finances to ensure the continual enhancement of their communities, securing their long-term success.

What Are the Benefits of Funding HOA Reserve Components?

When properly executed, reserve components do more than just enhance resident satisfaction. They can also help increase property values and even decrease long-term costs.

When you invest in upgraded amenities or structures using capital improvement funds, you can potentially decrease monthly maintenance and utility expenses. For example, you can increase the energy efficiency of your buildings by installing eco-friendly upgrades, thereby reducing monthly bills.

Investing in these modern upgrades and new amenities also increases the value of your HOA and its properties. By investing in infrastructure and making your neighborhood a more pleasant and desirable place to live, property values will increase and your community association can entice new homeowners, increasing your overall profitability — and boosting resident satisfaction.

If your Aurora, CO community association could benefit from professional community management services, including financial management services, consider the industry-leading experts at The Management Trust. Our HOA financial management services are not only included as part of our full-service community management program, but they’re also offered independently to community associations requiring only HOA financial management. All of our financial operations are SSAE 116 compliant and are highlighted by our TrustLink proprietary software. To learn more about how The Management Trust can help your community thrive, give us a call at 303-750-0994 or fill out our online contact form today.