As an HOA board member, it’s important to ensure that maintenance and renovation projects are handled with care and efficiency. Going about a renovation the wrong way can result in inconvenience for homeowners, wasted community funds, and lower resident satisfaction.

That’s why hiring the right contractor is crucial. However, choosing the right contractor can be a daunting task, especially when it comes to managing multiple bids. If you’re in the process of collecting contractor bids for a new project, here are a few community management tips to help you organize them and make the right choice.

How Many Contractor Bids Should Your HOA Get?

Most HOAs know that you should collect more than one contractor bid so you can compare your options. However, it can be more difficult to determine exactly how many bids are enough. Ultimately, there’s no one-size-fits-all answer, and how many bids you’ll need will depend on the scope and complexity of the project. If a project is simple and straightforward, collecting two or three bids would be sufficient. However, if a project is more complex and requires multiple contractors, it may be beneficial to gather more bids to ensure you’re getting the best pricing and quality of work.

Some states also require a minimum number of bids to be collected, so make sure you take local laws into consideration when collecting your contractor bids. For example, Nevada requires a minimum of three bids if the cost of the service is more than 3 percent of the HOA’s annual budget. Your community’s bylaws may also dictate how many bids you need to obtain, so make sure you work with your HOA management company to uncover any requirements and abide by them during the process.

Do All Projects Require HOA Contractor Bids?

A common misconception is that all projects require bids. However, this is not always the case. Projects that require specialized skills or expensive materials will benefit from obtaining bids from multiple contractors. However, smaller projects such as minor repairs or routine maintenance may not warrant a bidding process.

Another factor to consider is the size of your HOA. Larger HOAs may have more resources and flexibility to obtain multiple bids, whereas smaller HOAs may struggle with the time and effort involved in collecting bids. If your HOA board is struggling to find the resources to collect multiple bids for a project, consult with your community management firm to see how they can help shoulder some of the responsibility.

What Should Your HOA Consider Before Collecting Contractor Bids?

Before jumping into the bidding process, there are important factors that HOAs should consider to ensure a smooth and organized process. First and foremost, your HOA should clearly define the scope of the project. This will help contractors provide accurate bids and avoid any confusion during the project. Additionally, you should establish a timeline for the project and communicate it clearly to potential contractors. This will help them plan their schedule accordingly and ensure that the project is completed in a timely manner.

When considering your timeline, make sure that you include ample time for your board to collect and assess your bids. Once you’ve determined your desired start date for the project, make sure to start collecting bids with plenty of time to spare, giving your board enough time to review their options and giving the contractor enough time to free up their schedule.

Finally, make sure that your HOA has an adequate budget for the desired project. Don’t wait until after contractors have submitted their bids to secure funding. Ensure that the funding is in place before reaching out to request bids and get the project started.

If you want to streamline the process of hiring contractors for your community association, a professional HOA management firm like The Management Trust can help. Our Trusted Partners program makes hiring community contractors simple and hassle-free. It offers a reliable source for high-quality vendors that are pre-vetted and assured to get the job done well. We even provide a $2,500 client satisfaction guarantee for work performed by our enrolled vendors, and we have full contractor liability insurance coverage.

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, including contractor sourcing. To find out more about our comprehensive HOA management services or our Trusted Partners program, contact The Management Trust today.

As an HOA board member, you carry the responsibility of managing the community funds and making sure that common areas and amenities are well-maintained. However, with so many community management tasks on your plate, it can be easy to overlook the important task of conducting a reserve study.

A reserve study is a crucial part of financial planning for any HOA, as it helps determine the long-term financial needs of the community. However, a reserve study is only as good as the information it contains and the board’s ability to use it effectively. If you want to ensure that your reserve study is effective and that your community remains well-maintained and well-funded, here’s our essential checklist that every HOA should have.

1. Undergo a Physical Inspection

The first step in conducting a reserve study for your HOA is to undergo a physical inspection of all the common areas and facilities. This includes roofing, plumbing, electrical wiring, irrigation, asphalt, entry/exit areas, and any amenities.

During this inspection, your reserve analyst and HOA management firm representative will examine the common areas, assessing what may need to be maintained or replaced in the future. By identifying any existing issues or potential problems that may require attention in the future, you can gain a realistic idea of the condition of the community assets and help create an accurate reserve study.

2. Perform a Financial Analysis

After the physical inspection, your community management team will need to perform a thorough financial analysis. This involves reviewing your HOA’s financial statements, budget, and any other financial documents. A comprehensive analysis will help you understand the current financial status of your community and identify any financial gaps that need to be addressed.

This review is essential for helping you plan for future expenses and ensuring that sufficient funds are available for these projects. Make sure that all information is as accurate as possible, and ask your HOA financial management company to assemble all the necessary documents to ensure that nothing is missing.

3. Remember Commonly Overlooked Expenses

Whenever estimating future financial needs, it’s always best to include a buffer for unexpected costs. Even if your reserve study is incredibly thorough, it may still fail to cover unexpected expenses, such as those caused by natural disasters or emergencies. 

Some of the most overlooked expenses include ancillary repair costs, amenity-related expenses, roofing issues, emergency damage, or increased material costs. Accidents happen, so allow some room for emergency repairs or expenses that are more costly than anticipated. You should also account for inflation, as today’s expected costs will almost certainly cost more five years down the line.

4. Know Your HOA’s Funding Plan

Once you know what your HOA expects to spend, your reserve study should include a plan for how it will earn that money. Your funding plan should clearly outline how your HOA will finance projected expenses identified in the reserve study and how funds will be allocated.

How will annual dues change over time? Will you hold fundraisers or rent out amenities? Ask your community management firm to share your current income breakdown and make a realistic long-term plan for covering the expected costs outlined in your reserve study. Planning strategically and comprehensively will help you avoid last-minute significant fee hikes or emergency special assessments that lower resident satisfaction.

5. Review Your Balance Sheet

Once your reserve study has been completed, review your HOA’s balance sheet to determine how you should begin implementing your plan next year. Typically, this is done by adding the remaining months of the community’s reserve allocation and subtracting any known expenses. This should give you an idea of your true reserve balance, so you can begin implementing the results of your reserve study and working toward the long-term financial health of your HOA.

With over 30 years in the industry and over 1,500 successfully managed communities, The Management Trust has the expertise to guide you in all aspects of community association management, including HOA financial management services. To learn more about our comprehensive community management services, including assisting with HOA reserve studies, contact us today. We look forward to working with you!

In the world of community management, there is a significant difference between good and great. A good community manager may handle the day-to-day operations smoothly, but a great community manager goes above and beyond to elevate their community and make it thrive.

If you’re assessing HOA management firms to find your perfect fit, it’s important to find a community manager that isn’t just good — they’re great. For those wondering what the difference truly is, here are some key differentiators between good and great community managers.

They’re Proactive

Good community managers are reactive; they respond to issues promptly as they arise. Great community managers, on the other hand, are proactive. They anticipate potential problems and take the necessary steps to prevent them before they even happen. This approach not only eliminates potential issues but also showcases their dedication to the community’s well-being.

Proactive community managers also take the initiative to improve their HOA continuously. They constantly monitor industry trends and emerging technologies to identify areas for improvement for their community. By compiling this information, HOA board members simply have to show up to meetings and make thoughtful decisions about the information in front of them. If your board members’ jobs aren’t made significantly easier, then you don’t have a great community manager.

They’re True Partners in the Process

Good HOA managers fulfill their job responsibilities, but they may not foster a strong partnership with their board members. Great community managers don’t just execute tasks; they see themselves as an extension of their board, working together toward a common goal of improving the overall community and helping it thrive. 

Community managers should understand the importance of collaboration and communication when it comes to making decisions that impact the community. Although final decisions are always made by the board, effective HOA managers should be engaged in the HOA’s goals and planning. They should communicate effectively with board members, setting up annual review meetings and offering frequent updates on community projects.

They Strive to Create a Sense of Community

Good community managers may oversee the operations of the community, but great community managers strive to create a strong sense of community. They understand that an HOA is more than just a housing tract; it’s a neighborhood where people live and form meaningful connections with one another. Community managers should go above and beyond their job responsibilities to build a true sense of belonging and community.

Great community managers will organize events and activities that bring residents together. These can include holiday parties, community clubs, seasonal events, and more. They facilitate opportunities for residents to interact with one another, fostering a strong sense of community among homeowners.

They’re Always Learning

The rules, regulations, and industry trends surrounding homeowners associations are constantly evolving, so a truly great community manager will constantly strive to learn and remain up-to-date. They are constantly seeking out new knowledge and skills to improve their abilities and stay ahead in the industry.

A great community manager will attend industry conferences, workshops, and seminars to stay updated on the most recent community management best practices. They will also continuously learn from their experiences on the job, using their successes and failures to improve upon their management strategies.

They Make Everyone Feel Heard

One of the most significant differences between good and great community managers is their approach to communication and interpersonal dynamics. While good community managers may communicate effectively, great community managers go the extra mile to make sure everyone feels heard and considered. They understand how to balance personalities, build trust, and foster a positive community environment.

Great community managers will make a conscious effort to listen to the needs and concerns of residents, board members, and staff. They encourage open dialogue and create opportunities for feedback, making everyone feel valued and respected. Rather than simply smooth over conflicts, they will help to align all parties and implement a solution that works for everyone, truly resolving grievances instead of kicking them further down the road.

At The Management Trust, we ensure that each and every one of our community managers is truly great. This unwavering standard of quality service, paired with our employee-ownership difference, enables us to offer personalized community management services unlike any other. Where other HOA management companies can be reactive, we strive to always be proactive and ensure that your HOA is a happy and stress-free place to live. If you’d like to learn more about The Management Trust difference, contact us today and get started.

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.

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.