5 Quick & Easy Ways to Lower Your Utility Bills

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With financial security at the forefront of every Aurora homeowner’s mind, you may be looking for ways that you can cut down on costs. From controlling your online shopping to eating home-cooked meals on a budget, there are many easy ways to make sure that your dollar goes further and lasts longer. One easy way to cut costs is to make small lifestyle changes that could lower your utility bills. Having lower bills each month will help you save more money and give you some additional peace of mind. Here are five quick and easy ways that you can lower your home’s utility bills, from the HOA community management experts at The Management Trust.

  1. Replace your light bulbs

One of the first steps many homeowners take toward being more energy efficient is replacing their light bulbs. Exchanging traditional light bulbs for compact fluorescent or LED bulbs will decrease your energy use, making your home more environmentally friendly and saving you hundreds of dollars every year. Compact fluorescent bulbs use 75% less energy than traditional incandescent bulbs, and they last up to 10 times longer. It’s estimated that this difference can save you anywhere from $75 to $200 per year, depending on the size of your home.

  1. Seal off any drafts

Another way to lower your utility bills is to make your heater’s job as easy as possible. The more efficiently your HVAC system functions, the less you will spend on your utility bills. By sealing off any exterior drafts from doors, windows, and outlets, you can keep the temperature in your home more regulated and your HVAC system won’t need to work as hard to maintain it. This translates to significant savings on your utility bill at the end of the month, so it’s worth the investment in a bottle of caulk.

  1. Replace your air filter regularly

Similarly, your HVAC system can also be kept more efficient if you replace the air filter regularly. Most homes should replace their air filter every month, but this can vary depending on the size of your unit and the conditions of your home. Keep an eye on your air filter, and replace it whenever you notice it getting visibly dirty and clogged. Keeping a dirty air filter for too long is another way to force your HVAC system to run inefficiently, which will increase your energy bill as a result.

  1. Use a programmable thermostat

Heating and cooling is often the largest expense of any home, and you’ll likely notice the biggest fluctuations in your utility bill as the seasons change and you use your AC or heater significantly more. One way to keep your energy use under control and under budget is to invest in a programmable thermostat. With a programmable thermostat, you can set the temperature to automatically change depending on the time of day. This means that you can turn your system off or set it to a more relaxed temperature when the house is empty or everyone is asleep. It will also help to prevent you from making manual changes that may disrupt your system’s efficiency and cause it to work harder. Setting your thermostat to more cost-effective levels will save you money and help make your time at home more comfortable. 

  1. Fix any leaks

Another source of utility bill spikes is plumbing leaks. A single leaky faucet that drips once per second can cost you an additional $54 per year, on average. A burst pipe can cost you $230 a day! In order to ensure that you’re not flushing any money down the drain, have a plumber inspect your home’s plumbing system and repair any leaks. Leaks can be as obvious as a dripping faucet, but they can also be hidden in pipes under sinks or behind walls. Having your home checked for plumbing issues and fixing any sources of leaks will help you save significant money on your utility bills each year.

If your Aurora neighborhood has HOA community management from The Management Trust, you can get your home running efficiently and cost-effectively with the help of our Trust 360 program. This program serves to lessen the frustrations that come with being a homeowner by assisting you with the nagging to-do list of maintenance and repair services that are so regularly needed. Whether you need plumbing assistance, AC maintenance, or a general handyman, our Trust 360 program will help you get the job done and show you what excellent HOA community management is all about. For more information about our community association management services or the Trust 360 program, give us a call today at (303) 750-0994.

What to Do Before Moving Out of an HOA

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Moving is never an easy process, no matter where you live. From finding the right buyer and enduring escrow to packing up your belongings and coordinating move times, it can be an arduous process that leaves even professional movers unconfident. If you’ve decided to move to a different neighborhood or you’re planning to leave Tacoma altogether, there are some additional steps that will need to be taken before selling your home if you live within an HOA. Luckily, as an HOA community management firm with more than 30 years of industry expertise, we’re here to help you figure out exactly what you need to do before moving out of your HOA.

Inform Your HOA

Before you begin the process of listing your house for sale and searching for buyers, you’ll need to inform your HOA that you’re planning to move. Each HOA will likely have a unique procedural requirement for officially informing them, so it’s best to check your governing documents for any guidance on how to do this. Once they are informed, your HOA board can provide you with information about moving out that is specific to your community association. If you have any questions about moving out of your HOA, this is a great time to ask them before diving into the process.

Learn About Any Selling Requirements & Fees

Virtually every HOA has requirements or fees associated with selling your home. Selling requirements can range from a home inspection to a transfer document submission. There may also be special moving hours that you need to be aware of and/or schedule ahead of time. Additionally, there will likely be a fee for transferring ownership of your home. This can be a flat fee or an amount based on the selling price of the property, so be sure to find out all of this information in advance to be well prepared for what to expect.

Arrange for a Compliance Inspection

Although it is between the buyer and seller to arrange a home inspection, many HOAs require the seller to arrange for a compliance inspection as well. A compliance inspection is often conducted by the HOA’s architectural review board or management company, and they will assess the home to ensure that it is in compliance with the community’s CC&Rs. If there are any parts of the home that do not comply with community guidelines, such as a paint color or landscaping choice that isn’t permitted, this will need to be rectified before the seller can transfer ownership.

Disclose Your HOA to Potential Buyers

In order to ensure that you find the right buyer for your home and that escrow goes smoothly, it’s strongly recommended (and often required) that you disclose your HOA to any potential buyers. Concealing this information could result in the failure to sell due to issues with the HOA’s sale terms, the buyer’s bank loan, or other factors. Although being part of an HOA may turn away some buyers, it will attract many more and will help make sure that everyone is on the same page. Your sale needs to be completed according to your community association’s terms, and the buyer’s bank will likely need to know the cost of monthly dues before approving their mortgage loan.

If you’re ready to move out of your current Tacoma community, make sure that you know exactly what you need to do to make the move as smooth and painless as possible for everyone. If you have any questions, your HOA community management firm will be able to answer any and all questions relating to rules, regulations, and fees associated with moving out. To get in touch with The Management Trust regarding your Tacoma HOA, give us a call at (243) 472-0825. We have become an industry-leading HOA community management firm over the past 30 years because we consistently put our community members at the forefront of everything we do.

5 Security Measures to Keep Your Community Safer

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Residents’ safety and wellbeing is the top priority of any HOA and community association management firm. Tacoma homeowners want to feel secure inside their own homes, and there are steps that both residents and HOAs can take in order to ensure that the neighborhood stays as safe as possible. Here are five simple security measures that HOAs & HOA community management services can implement to keep their community safer. 

  1. Install Gates, Cameras, & Other Small Security Measures

One step that many HOAs implement from initial development is the inclusion of exclusive gated access. Having gated entrances with secure codes helps minimize the risk of unwanted intruders in the neighborhood. However, this is not a foolproof way to keep out trouble, so additional security measures such as motion lights and 24/7 security cameras can help thwart attacks and catch any crimes that are committed.

  1. Encourage Homeowners to Take Precautions

Security isn’t just achieved at the HOA level. Individual homeowners need to do their part to deter criminals as well. Have your community association management firm or HOA board members send out an email with tips for protecting their home. Make sure residents check that all windows are locked, all doors (including the garage door) are closed and locked, and all car windows are rolled up. Intruders look for easy access, so making your home as inaccessible and challenging to enter as possible will help keep away any trouble. You should also advise homeowners in your neighborhood to install video doorbells, such as Ring. These devices are affordable and easy to install, and they’ll help keep the whole neighborhood safer by making it easy to catch and report suspicious activity.

  1. Coordinate a Neighborhood Watch

Another way to get homeowners involved in protecting the community is by organizing a neighborhood watch. This can mean anything from organizing nightly patrols to simply having homeowners be more alert of suspicious activity. If residents know who their neighbors are, what cars they drive, and usual traffic patterns, then they’ll be able to report anything that may raise a red flag. Being able to identify and report suspicious activity quickly will help to deter potential criminals more effectively.

  1. Hire a Private Security Company

If it’s within your HOA’s budget, speak to your community association management firm about hiring a private security company. Private security will help better protect your residents by cataloging and restricting who has access to your community through gate attendance or catching criminals in the act through routine patrols. What level of security your HOA has the funds for will vary greatly, but any kind of dedicated security force will go a long way in keeping your community safer.

  1. Build a Strong Relationship with Local Law Enforcement

Despite your best efforts, it is still possible that a home in your community may be breached. If this occurs, it’s important to have a good relationship with local law enforcement. Cultivating a personal relationship with your local police chief or sheriff and supporting police events will establish goodwill and earn you appreciation that you can utilize for any emergencies later down the line. Having a clear line of communication already established will also help save time and confusion in the event that you do need emergency assistance from local police.

If you’re looking to implement additional security measures for your Tacoma HOA, The Management Trust’s community management services can help you. Turn to our trusted vendors list to find a private security service that will go the extra mile, or speak to our team about recommendations for common and effective HOA security measures. As the HOA community management experts, we have a wealth of knowledge that your board can utilize in order to optimize your community’s security plan. Give us a call today at (253) 472-0825 to find out more.

How Can My HOA Help to Prevent COVID-19?

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The new age of social distancing is presenting unique challenges for community associations and their residents each day in Aurora. Living in a close proximity and sharing common amenities can bring up worries surrounding the spread of COVID-19 that HOAs couldn’t have anticipated just a few months ago. All around the country, HOAs and their community management services are working together to figure out the best practices for protecting residents from COVID-19 and flattening the curve in their area. Here are a few ways that your community association can do its part to prevent the spread of COVID-19 in your neighborhood.

Emphasize Social Distancing for Residents

It’s important that everyone stays in their homes as much as possible in order to remain safe. While many homeowners are taking this seriously, there will likely be a select few who prefer to venture out. In order to keep everyone as safe as possible, cancel or postpone all organized events in your community. Encouraging people to stay at home and not giving them an opportunity to mingle will help set a good example and prevent the spread of COVID-19 within your neighborhood. 

Close Common Areas

Along those same lines of encouraging self-isolation, it’s advised that you close all common areas possible during this time. If your HOA has a pool, gym, basketball court, playground, or any other amenities that encourage group activity, close these down in order to deter any residents from violating stay at home orders. It may be an unpopular step, but it’s one that needs to be taken if you want to keep everyone in your community association safe. If your HOA has a large park or field, it’s up to you to decide whether or not to close it. You may restrict hours or assign someone to supervise the area. If the area is big enough that people won’t be in close proximity to one another, it will likely be okay to keep amenities like these open.

Clean Common Areas More Frequently

If you do decide to keep your facilities open, it’s crucial that you regularly disinfect high traffic areas. Clean each facility more extensively at the end of each day than you normally would, and wipe down common areas such as desks, door handles, and public restroom surfaces every hour. The more frequently and the more thoroughly you clean an area, the safer it will be for other residents. 

Install Disinfecting Stations

Similarly, make sure that residents have access to disinfecting materials by installing hand sanitizer and hand wipe dispensers wherever possible. Posting this by the entrance to common areas that remain open will help ensure that everyone in your community is doing their part to keep things safe and sanitary. 

Hold Virtual Meetings

It’s likely that you’ll still need to hold just as many HOA meetings during this time, if not more of them. In order to comply with social distancing measures and keep everyone safe, take things digital and switch to video conferencing for your board meetings. Apps like Zoom, Skype, and Google Hangouts are perfect for professional conferencing purposes. It’s important to lead by example, so remaining at home and conducting business over the phone or computer will be in everyone’s best interest while still allowing you to get the job done.

Before taking any drastic steps, be sure to have your HOA board consult with medical, legal, and insurance professionals. The Management Trust’s community management services can help you establish appropriate objectives and execute them as efficiently as possible. We manage more than 1,500 communities nationwide, including in Aurora, so we have the expertise to proactively implement any precautions you feel are necessary to best protect your community association. 

Signs That Your Property Needs to Be Touched Up

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One of the biggest reasons that homeowners choose to live in an HOA is because of the consistent, high property values. When you purchase property in a community association, you can be confident that your property value will be stable for years to come. However, this is largely due to the rules put in place that require all property owners to keep their homes in pristine condition. If you own or manage a property in a Tacoma HOA, you’ll need to call a handyman or trusted vendor if you notice any of the following signs that your property needs to be touched up.

  1. Faded or Peeling Paint

Over the course of several years, the power of the sun’s UV rays can cause your home’s exterior paint to fade. This unevenness in paint color can affect your home’s curb appeal, warranting either a touch-up or a completely new paint job. Areas with a lot of rain or moisture can also cause homes to suffer from peeling paint over time. If these issues arise in your property, it’s likely time to call a professional painter. Touching up your property’s paint job is a relatively small task that can make a major difference in the overall appearance of the home.

  1. Cracked Bricks or Concrete

Cracked bricks or cracked concrete are inevitable signs of wear for any building. However, most HOAs will require you to repair or replace cracked bricks as soon as they’re noticed. Letting the number of cracked or chipped bricks pile up as you put off repairs will decrease your home’s curb appeal and, eventually, its property value. The same goes for extensive cracks in concrete or stone pathways outside the home. If you notice any of these issues, it’s best to fix them before they become noticeable or significant. 

  1. Overgrown or Dead Plant Life

If you have tall grass or dead plants, you’ll want to call in a landscaper as soon as possible. Many HOAs have restrictions dictating how tall your grass can grow or how your plants must look. If you fail to maintain these regulations, you may be charged additional fees on top of still needing to call a landscaper to rectify the issue. 

  1. Mildew

If you notice any mildew around the perimeter of your home or in the basement, you’ll need to have it power-washed as soon as you can. Mildew is caused by the accumulation of water, so plumbing issues or even just the wet weather itself can cause this. In order to thoroughly eliminate any mildew and associated health hazards, powerwash and repaint the area. 

  1. Consistent Plumbing Issues

Not all issues are merely external. Your building’s plumbing, HVAC, and other systems should also be serviced regularly to ensure that they are operating at peak performance. If constant plumbing issues seem to be a problem, you may want to have a trusted plumbing service come out and check the entire building for any issues, big or small. Even small things that appear negligible could grow to become major safety hazards if they’re left unrepaired.

If you’re part of a Tacoma community association, it’s of the utmost importance to have a list of local vendors that you can trust to do great work. Here at The Management Trust, we elevate HOA community management by offering our Trust 360 program. This program serves to lessen the frustrations that come with being a homeowner by assisting you with the nagging to-do list of maintenance and repair services that are so regularly needed. No matter what part of your home needs touching up, our Trust 360 program can help you get the job done quickly and to your full satisfaction. For more information about our community association management services or Trust 360, give us a call today at (253) 472-0825.

Qualities Every Great HOA Board Member Should Have

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Every Aurora homeowners association is unique, and so, too, are the board members representing it. Having a diverse range of personalities and backgrounds enables your board to best represent such a diverse group of homeowners. However, there are several qualities that all strong HOA board members will have in common.

  1. Leadership Skills

As a community association board member, you’re a leader of your community. To be entrusted with this responsibility, you must display clear leadership skills such as positivity, responsibility, and the ability to clearly and effectively communicate. A strong leader also knows that they don’t know everything. An HOA board is composed of several different community members that must all work together, so being able to graciously defer or delegate to others who may have more relevant skills is a sign of a good leader and a great HOA board member.

  1. Love of Community

Being an HOA board member means dedicating a substantial amount of time and hard work to improving your neighborhood. This kind of commitment is no small task, so any homeowners association board member should love their community and want to attend every meeting and community event that they can. 

  1. People Skills

One of the biggest aspects of being a board member is growing relationships with your neighbors. Whether it’s providing answers to a community member’s HOA-related question or just chatting with the family next door, consistently providing positive interactions will build trust and personalize your community’s leadership. If residents know and like their HOA board on a personal level, disputes will be easier to resolve and your community will be a more enjoyable place to live overall.

  1. Honesty & Integrity

As an elected official, HOA board members are being trusted by their community members to represent their best interests. However, you also need to be able to abide by local laws and restrictions, even if you don’t agree with them. Balancing these responsibilities requires someone who is always honest and fair. Strong personal integrity will help you to navigate the difficult decisions that sometimes need to be made as an HOA board member. 

  1. Ability to See the Big Picture

The HOA board is constantly working to improve their community for the future, and this often includes making long-term plans for the neighborhood. As a board member, you should be able to visualize the growth of your community and the hypothetical plans needed in the coming years to make this happen. It’s always important to focus on the present-day issues, but working to bring future goals to fruition is just as important for community success.

  1. Ability to Ask for Help

All good leaders, no matter how knowledgeable, should be able to ask for help when they need it. No one can do everything themselves, and sometimes even the full HOA board can be limited in what they can accomplish without assistance. Utilizing HOA community management services is a great way to reach your community’s full potential. Consulting an expert on any matter⁠—whether it’s legal, financial, or managerial⁠—will give you a unique perspective from a trained professional and help your community operate more successfully in the long run.

If your Aurora community association is in need of community management services, consider The Management Trust. As the only 100% employee-owned HOA community management firm in the country, we offer a unique perspective that puts individual community members at the forefront of everything we do. Your community’s success is our top priority, and we’ll always do everything in our power to help your Aurora neighborhood grow. If you’d like to find out more about our community management services, give us a call today at (303) 750-0994.

Tips For Raising Homeowner Assessments

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The last thing that any Aurora HOA board wants to do is raise fees for homeowners. However, it can sometimes be unavoidable if your association’s financial state requires it. Regardless of necessity, though, it’s extremely rare that homeowners will embrace the increased fees with open arms. Concern, confusion, and anger are all common reactions that you’ll encounter when notifying residents of increased assessments. However, there are steps that you can take in order to minimize the negative reaction from your homeowners.

What Are Assessments & Why Do They Increase?

Assessments are the fees that all association members must pay in order to continue living within a homeowners association. These assessments cover the cost of services that benefit the entire association, such as the maintenance of common areas. Fee increases are only implemented when absolutely necessary, such as when long-term costs are projected to increase. This may be due to a gradual increase in the cost of living or upcoming projects that need to be funded. 

Notify Residents Right Away

If your HOA board does decide that an assessment increase is necessary, make sure that you notify residents as soon as possible. Right after the board approves the action, draft and send a letter to each homeowner explaining the increase. In many states, you’ll need to provide at least 30 days’ notice, and the more notice, the better when it comes to minimizing your community’s reaction. 

Explain Your Reasoning

When people are told that they will be spending more money, their first reaction will almost always be confusion and alarm. In the letter, clearly explain why the increase is unavoidable. Provide budgets, statements, graphs, and other documentation to support your decision. Justifying your board’s actions as much as possible will help clear up any confusion and minimize the number of homeowners coming to you with questions and concerns.

Provide Reassurance & Assistance

No matter how well you prepare them for the decision, there may be homeowners who simply cannot afford the increase or who will be cutting it close financially. Reassure them that you understand their stress and that this decision was the only option remaining. In the case of emergency or special assessments, consider offering payment plans or be reasonably flexible with deadlines in order to accommodate homeowners that will be under financial strain. The display of understanding and compassion will reassure homeowners and minimize any poor reactions to the decision. 

At The Management Trust, we can assist Aurora HOA boards with handling difficult tasks such as these. 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 Aurora area. To find out more about our community association management services, give us a call today at (303) 750-0994. 

What to Know When Buying a Home In an HOA

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If you’re looking to purchase a new home in the Tacoma area, you may very well find yourself falling in love with a home in an HOA. Properties that are part of a community association often have high curb appeal, making them desirable for homeowners. However, HOAs can raise a lot of questions for prospective buyers, such as how much the fees are, what amenities they’ll receive, and why being part of an HOA is beneficial. If a home in an HOA has caught your eye, here are some questions you should ask before signing on the dotted line. 

What are the monthly fees?

Your HOA dues are not optional, and they must be paid every month without fail like an extension of your mortgage. Before you commit to a home inside of a homeowners association, make sure that you are able and willing to pay the HOA fees each month. You should also ask neighbors and your realtor about how often fee increases happen in order to gauge the potential of increasing assessments while you’re living there. For example, HOA dues in Washington can increase annually, unless there is a special or emergency assessment. If the fees are too high or if they increase often, it may be better to keep searching in a community association that you can more easily afford.

What amenities are included in the neighborhood?

Before asking this question, decide which amenities are important to you. Do you need a playground to keep your kids occupied during the day? A community center for birthdays or a pool for summer fun? Once you’ve decided which amenities are non-negotiable, which are ideal, and which are unnecessary, ask your realtor to show you homes inside HOAs that include those features. This will save you time when shopping for homes and will help ensure that your HOA dues are going toward features that you will regularly utilize. 

Who Are the Board Members & What Are They Like?

If possible, attend an HOA meeting or obtain minutes of past meetings. You can also ask other residents of the neighborhood about their experiences with the HOA board or community association management firm. Keep an eye out for repeated complaints across multiple residents, and use this information to determine whether you’d be a good match for this neighborhood. 

What do the CC&Rs say?

The rules and regulations of each HOA are unique, so you’ll want to make sure that you purchase a home in a neighborhood whose rules you’re willing to follow. CC&Rs are public record, so before you commit to purchasing a home, ask for access to the CC&Rs of that community association. Making sure that the HOA’s regulations are ones that you can easily follow will make your quality of life better in the long-term and will make the move-in process as hassle-free as possible.

More than half of the owner-occupied households in America are part of an HOA. Given this, if you’re house hunting in the Tacoma area, it’s likely that your dream home lies within a community association. Before purchasing, make sure that you do your due diligence and consider a wide range of factors that could affect your quality of life while in your new home. HOAs that utilize a community association management firm will often be better equipped to handle homeowner issues and can make your time at home more enjoyable and hassle-free. For more information about community association management services for the Tacoma area, give The Management Trust a call at (253) 472-0825. We successfully manage more than 1,500 unique neighborhoods throughout the country. 

Top Benefits of Living in an HOA

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Living in an HOA can sometimes be a polarizing topic, as some homeowners don’t understand the value it brings to their property. If you’re a Tacoma resident wondering what value living in an HOA has, consider these top benefits that make HOA neighborhoods some of the most desirable in the Tacoma area.

Access to Amenities

Condominiums, single-family residences, and other homes that belong to an HOA often have access to desirable recreational amenities that are hard to come by in other neighborhoods. Walking trails, sports fields, swimming pools, playgrounds, parks, and barbecue pits are just some of the many amenities popular in HOA neighborhoods. If you live in a homeowners association, part of your HOA dues go toward the running and upkeep of these facilities, and you have access to them as a community member. 

Reduced Maintenance & Upkeep

Outside of an HOA, you’re entirely responsible for the upkeep of your amenities, and you will need to source your own repairmen and vendors when issues arise. However, in an HOA, amenities such as the pool or gym are well-kept at all times. If you are partnered with a professional community management company, finding a reliable and trusted vendor is extremely easy. They will source, vet, and recommend vendors to your elected Board of Directors. This eliminates the need for random Internet scouring and gives you peace of mind that they’ll do good work that is HOA-approved.

Stabilized Property Values

One of the biggest reasons why residents prefer homes in an HOA is because homeowners’ associations are proven to stabilize home values and prevent domino foreclosures. Having well-kept common areas as well as strict home appearance rules means that property values will be more consistent. There’s no risk of a bad house on the block negatively affecting the rest of the neighborhood’s property value; in fact, this is one of the main reasons that HOAs were established. Protecting the value of your property is why HOA neighborhoods are so desirable and homes in them often sell for more than homes in a non-HOA community.

Dispute Settlement

Have you ever had an issue with a neighbor over a barking dog or loud parties? If you’re living in a homeowners association, your community management company will address these issues on behalf of your HOA and ensure that everything is resolved amicably and effectively. Having an official mediating party will not only discourage these issues in the first place, but it will help any neighborly issues get resolved as quickly as possible. 

Community Engagement & Bonding

HOAs often partner with their management company to host social events such as welcome parties for new residents or block parties for the holidays. These activities hosted by community associations encourage resident engagement and help you get to know all of your neighbors in a way that non-HOA homeowners rarely get to do. Fostering a sense of community is a big part of what makes HOA living so enjoyable for so many people. With an HOA there to take care of the big stuff, you can spend more time enjoying your neighbors’ company and sharing fun amenities that encourage socializing. 

If you’re a Tacoma resident searching for homes in community associations, don’t let the stereotypes and HOA fees scare you. Homeowners’ associations are an enormously popular living style because they foster a sense of community, create less work and concern for homeowners, and stabilize property values during times of economic concern. Community association management companies such as The Management Trust ensure that your community association runs smoothly and efficiently, allowing board members more time to focus on improving their communities. If you’re an HOA board member in search of an effective community association management firm, call The Management Trust today at (253) 472-0825. We promise to always listen to your HOA’s needs and react with exceptional customer service that always serves the best interest of your homeowners.

HOA Terms Everyone Should Know

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If you’ve recently joined your Aurora community’s HOA board or have recently moved into a neighborhood with an HOA, you may be unfamiliar with some crucial terms that every community association member should know. From governing documents to your fiduciary duties, you’ll get the most from your time in a community association by familiarizing yourself with the most important and most common HOA terminology. 

  1. Fiduciary Duty

HOA board members have fiduciary duties that they must fairly and consistently carry out. A fiduciary duty is defined as one party acting for another, specifically when entrusted with the care of property or funds. Essentially, the law dictates that HOA board members must act in the best interest of their community members. Regardless of personal relationships, financial circumstances, or any other factors, board members must always fairly exercise the duty of care, the duty of reasonable inquiry, and the duty of good faith.

  1. Quorum

A quorum is the minimum number of board members necessary to legally conduct your HOA’s business and make decisions. If you do not have a quorum, you cannot take votes, propose changes, or conduct any other type of official HOA business. Most community associations define a quorum as a simple majority. However, you should check your HOA’s bylaws for their official definition. 

  1. Governing Documents

Every HOA has a set of governing documents that outline exactly what board members can and can’t do in terms of governing their neighborhood community. Although homeowners may sometimes feel as if they’re the only ones restricted with a set of rules, the HOA board similarly has sets of rules and regulations that they must follow when governing their community. Virtually every community association has the following governing documents: Articles of Incorporation, Bylaws, CC&Rs, Rules & Regulations, and Plats of Survey & Easement Agreements.

  1. CC&Rs

Of the governing documents listed above, new planned neighborhood homeowners often have the most questions regarding the CC&Rs. CC&Rs stands for the Declaration of Covenants, Conditions & Restrictions. It contains the rules of your neighborhood, which makes it an important document to be familiar with. The CC&Rs will outline the limitations of what you can do with your property, such as lawn maintenance requirements or parking rules. The main goal of the CC&Rs is to protect and preserve property values in your community, and it’s an integral part of any successful homeowners’ association. 

  1. Assessments

Assessments are mandatory dues or fees that all community members must pay. There are several types of assessments that you may have to pay: Regular Assessments, Maintenance Assessments, Extraordinary Assessments, or Special Assessments. Your Maintenance Assessment is also known as your HOA fee. These fees pay for the maintenance of everything that falls outside of your property line, also known as the common area. An HOA has more items to upkeep than you may think: street lights, entry gates, landscaping, irrigation, recreational centers and facilities, main office utilities, and community events. Your HOA fees, or assessments, go toward paying for these and allowing you to continue to live in a well-kept, desirable neighborhood with high property values. 

  1. Community Association Management Company

A management company is a third party that is hired by an HOA’s board to execute the decisions made by the board. From collecting assessments to scouting reliable vendors, a community association management company helps build a stronger sense of community by enabling board members to spend more time in their community and making decisions that will most benefit it. It’s important to note that the management company does not make any decisions on behalf of the association. It merely acts at the direction of the board to execute duties and enforce rules where needed.

The Management Trust is one such community association management company that has helped communities throughout Aurora become stronger and operate more smoothly. Just like an HOA board is composed of its fellow residents, The Management Trust is entirely owned by its employees. This makes us uniquely positioned to understand the diverse needs of HOA board members and offer exceptional, personable customer service with every interaction. From vendor billings to record-keeping services, The Management Trust can do it all and leave your HOA with more time to focus on building community relationships. For more information about our services or to request a proposal, give us a call at (253) 472-0825 today.