Breaking Down the Differences Between HOA Boards and HOA Management Firms

With the goal of maintaining the overall appearance and value of their community, Tacoma, WA HOAs are responsible for enforcing rules and regulations, managing finances, and maintaining common areas. To achieve this, community associations typically rely on two key entities: the HOA board and an HOA management firm.

While both entities have a common goal, they differ in their specific responsibilities and their approach to fulfilling these responsibilities. Before seeking professional community management services, it’s important for HOA board members to be aware of the differences between the two parties and how exactly an HOA management company can benefit their neighborhood.

HOA Boards vs HOA Management Firms

The HOA board is a group of elected members who are responsible for managing the HOA and making crucial decisions about how it operates. The board consists of homeowners who live within the HOA and volunteer their time and efforts to serve their community.

HOA management firms are third-party service providers that are hired by the HOA board to manage the day-to-day operations of the community. They have a team of hired professionals who have the knowledge and experience to handle the maintenance and administrative tasks of the community association.

Both the board and the community management company need to work together to operate the HOA and ensure its success, but sometimes the responsibilities of each party can start to become blurred. This is especially true when the HOA board isn’t aware of the clear difference between the two and begins to request or expect that the management firm take over some of the board’s duties. Although the management company is there to help the board as much as it can, some duties should remain reserved exclusively for board members.

Responsibilities of the HOA Board

Every HOA is composed of volunteer board members who vote on how funds are allocated, which rules are set into place, and other important decisions. They organize community events, create projects for the improvement of common spaces, choose community vendors, and much more. 

Ultimately, the HOA board’s responsibility is to maintain property values by ensuring their neighborhood remains a desirable place to live. This can involve hundreds of daily decisions and tasks, all working toward that goal. Being a member of an HOA board means dedicating time to your community and advocating for the best interests of the neighborhood. It’s an important role, but one that comes with many important duties.

Responsibilities of an HOA Management Company

While the HOA board focuses on the big picture and makes decisions for the community’s well-being, the HOA management company executes its decisions and handles day-to-day operations. The community management firm will perform administrative tasks including answering homeowner inquiries, vetting and scheduling vendors, and collecting dues from residents. A full-service HOA management firm such as The Management Trust will also offer comprehensive financial services such as tax filing assistance, annual budget preparation, vendor billings, escrow services, and audit coordination. 

While the HOA board is still the exclusive decision-maker in the community, laying out the rules and fees, the HOA management company works to effectively execute the decisions made by the board while ensuring residents’ happiness and satisfaction. The board can decide which day-to-day responsibilities the management firm takes off its plate, but all policies and executive decisions remain the responsibility of the board.

Utilizing a reputable and full-service HOA management company for day-to-day duties can help your board focus on the bigger picture, so your community can fulfill its full potential. If you want a community management partner dedicated to building a community you love through whatever means necessary, 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.

How Does On-Call Community Management Help Your HOA?

Aurora, CO community associations experience calls and emails at all hours of the day and night. From simple inquiries to flat-out emergencies, there are hundreds of communications to field, 24/7. 

As a board member with a full-time job and family, this can quickly become overwhelming. However, fielding these emergency calls is essential for effective community management. That’s why many HOA boards are opting to hire an on-call community management company to help them in all aspects of HOA management, including after-hours resident communications. Here are just a few ways that an on-call community management firm can help your HOA in this area.

Less Stress for Board Members

As volunteers, HOA board members often have full-time jobs and families to take care of in addition to their duties on the board. This can lead to a high level of stress and burnout when trying to manage the day-to-day operations of the community. On-call community management services greatly alleviate the stress of board members by taking over the daily responsibilities of managing the community.

One of the significant benefits of on-call community management is that it allows board members to be less frequently disturbed by resident-related issues. Instead of constantly fielding calls and emails from residents at all hours, your HOA management company can handle these inquiries and concerns. This not only reduces the stress on board members but also ensures that all resident issues are addressed promptly and professionally. 

Your HOA board can also give pre-approved emergency action authorization to your community management company when certain conditions come up. This way, board members don’t need to be disturbed and urgent issues can be addressed in a timely manner at any hour.

Expert Understanding of HOA Management

Many board members run for the board with the intention of fixing a specific issue that has been bothering them in the community. However, they soon realize that managing an HOA is a complex and multifaceted job that requires expertise in various specialized areas. 

Most board members are volunteers and have limited time and knowledge compared to professional HOA management firms. On-call community management firms have experienced professionals who have an extensive understanding of all aspects of HOA management. This means that all areas of HOA management are prioritized and given the attention they deserve. 

In an emergency situation, you can have peace of mind that the person answering the phone has experienced similar situations before and will respond with professionalism and urgency, putting your HOA’s best interests at the forefront.

Vendors Are Pre-Vetted and Standing By

A significant part of managing an HOA is working with contractors and vendors for maintenance and repair projects. This can be a time-consuming and stressful process for board members who have to research, vet, and negotiate with these vendors.

On-call community management companies, on the other hand, have existing relationships with extensively vetted vendors, making this process much smoother and more efficient. This means that your HOA management company can quickly address any issues that may arise in the community, whether it’s a plumbing emergency or a landscaping issue. This not only saves time for the board but also ensures that residents receive high-quality and prompt service in the case of an emergency and year-round, increasing homeowner satisfaction.

HOA community management is no easy feat, which is why HOA management companies such as The Management Trust are beloved by Aurora, CO, community associations. We can help ease the burden of HOA board members and ensure that every aspect of your HOA’s daily operations is well taken care of. From administrative duties to after-hours communications, we can tackle every aspect of community association management and help your neighborhood thrive. To find out more about our wide range of community management services, call The Management Trust at 303-750-0994 or fill out our online contact form today.

Key Metrics for Evaluating the Performance of HOA Management Firms

If you’re a member of a Tacoma, WA, HOA board, you’re likely familiar with the extensive list of duties and responsibilities that HOAs have to undertake to care for their communities. From creating and enforcing day-to-day rules to maintaining shared amenities, there’s a lot that goes into managing an HOA of any size. If your HOA board is feeling overwhelmed with their duties, an HOA management company can go a long way in relieving you of day-to-day tasks while you focus on making executive decisions that improve your neighborhood’s quality of life.

However, if you’re investing in professional community management services, you want to ensure that they’re actually benefiting your community and performing to the highest standard possible. If you want to evaluate the performance of your HOA management firm, here are four key metrics you can use.

Contractual Requirements

The first and most important metric to evaluate your HOA management firm’s performance is to review the performance requirements outlined in your contract with the company. This is the foundation of your working relationship between your HOA and the management firm, so your community manager should be doing all the included tasks at a minimum.

Ideally, your community manager should go above and beyond the outlined job description. However, if there are any discrepancies between the contract and your manager’s performance, you should have a conversation with your HOA management firm to address the situation. Additionally, if there are any tasks not outlined in the contract or tasks that are being underprioritized by your manager, you may want to request adjustments to your contract for the future.

Budget and Financials

The financial health of your HOA is another crucial metric to evaluate your HOA management firm’s performance. Your community manager should review your HOA’s budget with the board on a regular basis, and they should keep you informed about any significant financial changes. They should also ensure that your community is operating within its budget constraints and that expenses are managed effectively if HOA financial management is part of your agreement.

Your community manager should also have strong attention to detail when it comes to financials. This means going over expenses, invoices, and statements regularly to spot any discrepancies or potential issues. They should also provide detailed financial reports and bring up anything they’re unsure about.

Communication

Good communication is the cornerstone of any successful relationship, and this is no different for the relationship between your board and HOA management firm. Your HOA management company should be proactive in their communication and regularly provide updates. They should also be open and responsive to any questions or concerns you may have.

Timely communication is also crucial. If you find that your management firm takes too long to respond to your messages or fails to communicate urgent information in a timely manner, this may be a concern that necessitates a discussion with your management company.

Resident Feedback

The final metric to evaluate your HOA management firm is feedback from residents. A good HOA management firm should establish personal relationships with residents and be approachable when it comes to addressing any concerns or issues. They should also be proactive in following up on raised issues and show a genuine interest in resolving any problems.

If your HOA management company has failed to establish any personal relationships with residents, or if residents are explicitly submitting negative feedback about your management company, this can be a red flag. Take note of any recurring complaints or issues and address them with your HOA management firm. Ultimately, resident happiness is the main priority of both your HOA board and your community management company, so if your residents aren’t satisfied, it’s a clear indication of the need for improvement.

HOA community management is no easy feat, which is why HOA management companies such as The Management Trust are beloved by Tacoma, WA, community associations. We can help ease the burden of HOA board members and ensure that every aspect of your HOA’s daily operations is well taken care of. From administrative duties to financial planning, we can tackle every aspect of community association management and help your neighborhood thrive. To find out more about our wide range of community association management services, give us a call at 253-472-0825 or fill out our online contact form today.

Transparency in HOA Financial Reporting: Why It Matters

Aurora, CO, HOAs are responsible for managing the financial resources of all the members of a community, and as such, they must exercise a high degree of responsibility and accountability to ensure that resources are managed properly and efficiently.

Understandably, many homeowners want to know that their money is being handled in a responsible manner, and transparent financial reporting is crucial for giving your residents that peace of mind. As an HOA, it’s important to ensure transparency in financial reporting to maintain trust and open communication with residents. To improve resident satisfaction and foster a trusting relationship between your board and your homeowners, try these four tips for transparent financial reporting.

Invite Homeowners to Board Meetings

One of the most effective ways to promote transparency is by inviting homeowners to attend board meetings. These meetings provide an opportunity for residents to voice any concerns or questions they may have regarding the association’s finances.

By being able to attend these meetings, residents can see firsthand how their money is being used and managed. It also demonstrates that your HOA board values their input and is committed to transparency and open communication.

Give Residents Access to Financial Information

Another vital aspect of promoting financial transparency is giving residents access to pertinent financial records and documents. Residents should be able to review the HOA’s financial statements, budgets, and other important financial documents upon request. In fact, it’s legally required that HOAs share these documents in some states.

This level of accessibility shows residents that you have nothing to hide and are committed to keeping residents informed about their finances. It also gives homeowners the opportunity to verify the accuracy and integrity of the community association’s financial reporting, giving them greater peace of mind.

Publish an Annual Financial Report

In addition to providing access to financial documents, HOAs should also publish a financial report each year for all homeowners to review. This report should include important information such as capital expenditures, revenue and expense statements, replacement reserves statements, association-provided insurance coverage, and the status of any pending judgments or litigation. 

This report should be published prior to your yearly homeowner meeting so residents may discuss any concerns they have during the meeting. Encouraging discussion openly and honestly not only increases resident satisfaction in your HOA’s financial health, but it also shows residents that you prioritize transparency and trust.

Perform Annual Reviews and Audits

Performing an annual review or audit of the HOA’s finances is another essential step in ensuring transparency. An audit is a formal examination of the association’s financial records, performed by an independent CPA. In an audit, the CPA will ensure that all statements are accurate and in line with official accounting practices. 

An annual review similarly verifies your HOA’s financial statements, but it isn’t as extensive as a full audit. This option is best for smaller HOAs who still want to show that their board is upholding financial transparency and accountability.

At The Management Trust, we can assist Aurora, CO, HOA boards with ensuring financial transparency and accurate financial reporting. 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. To learn more about our comprehensive HOA management services in Aurora, CO,  call The Management Trust at 303-750-0994 or fill out our online contact form today.

A Beginner’s Guide to Community Association Management

If you’re a member of a Tacoma, WA, HOA board, you’re likely familiar with the extensive list of duties and responsibilities that HOAs have to undertake to care for their communities. From creating and enforcing day-to-day rules to maintaining shared amenities, a lot goes into managing an HOA of any size. If your HOA board feels overwhelmed with their duties and needs assistance managing day-to-day operations, consider hiring an HOA management firm. 

Reputable HOA management companies can take a lot off your plate, handling the day-to-day financial and administrative duties so you can focus your time on bonding with your residents and creating long-term plans for the success of your community. If your HOA board may be in need of community management services, here’s a beginner’s guide to all things community association management.

What Is HOA Management?

If your HOA board wants to ensure the best care and maintenance for their community, they may hire an HOA management firm. A community management firm is a company hired by the HOA to oversee day-to-day operations in the community.

Your community management firm can perform administrative tasks including answering homeowner inquiries, vetting and scheduling vendors, and collecting dues from residents. They may also comprehensive financial services such as tax filing assistance, annual budget preparation, vendor billings, escrow services, and audit coordination. 

While the HOA board is still the exclusive decision-maker in the community, laying out the rules and fees, the HOA management company works to effectively execute the decisions made by the board while ensuring residents’ happiness and satisfaction. It’s also important to note that an HOA manager focuses on the community association as a whole, not specific properties, so they shouldn’t be confused with property managers.

Who Needs an HOA Management Firm?

Properly managing a community association — especially a large one — requires an enormous amount of time, knowledge, and dedication to your community. Despite many HOA boards’ best efforts, sometimes members become overwhelmed by the responsibilities required, especially when many aspects of community association management are specialized industries, including monitoring of local laws and financial accounting.

If your HOA board is struggling to keep up with day-to-day operations, lacking clear leadership, suffering from communications issues, or allowing administrative tasks to slip through the cracks, you’re likely in need of community management services. Even if you feel your HOA board is managing well but is looking to expand or wants more free time to focus on the bigger picture of the community’s success, an HOA management firm can help ease the burden on board members and help your community association operate more efficiently.

What Do HOA Management Companies Do?

The responsibilities and functions of a community management company are entirely different from those of the HOA board, so it’s important to know what services your community management company can and will provide. In general, HOA management firms will help execute any aspect of the community’s operations, from collecting dues to enforcing bylaws. They can help organize community events, perform financial administrative tasks, and coordinate vendors for amenity maintenance. Your HOA management company is also a great resource for anything you want an expert opinion on. From providing legal guidance to offering advice on board decisions, your management team is there to support your efforts and improve the overall well-being of your residents. 

What your community management company will never do, however, is make decisions on the board’s behalf. Your board retains all decision-making power and is responsible for finalizing budgets, brainstorming events, and passing new laws. Your HOA management company simply works to execute and implement these ideas for you. The community management company will enforce any rules set in place, but the HOA board itself is the only party that can create new rules and determine the penalties for violating them. 

Utilizing a reputable and full-service HOA management firm can help you focus on the bigger picture, so your community can fulfill its full potential. If you want a community management partner dedicated to building a community you love through whatever means necessary, 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 HOA financial management, call The Management Trust at 253-472-0825 or fill out our online contact form today.

4 Significant Challenges HOA Board Members Face — And How HOA Management Firms Can Help

HOA board members in Aurora, CO, and beyond have a very difficult job. They have to run every aspect of their community’s day-to-day operations, finances, rule enforcement, and more, all as a volunteer donating their time to the community. Board members aren’t employed — they’re simply residents of the HOA that have volunteered and been elected as board members who run the very communities they live in. As such, not all board members know how to handle the many complex aspects of community association management. Luckily, HOA management firms can help guide and assist HOA board members in almost all aspects of community management.

1. Lack of Education & Experience

Since HOA board members are residents of the community who volunteer their service, they don’t always have the education and experience necessary to perform all required tasks at the start of their term. After all, these board members generally all have jobs, families, and outside responsibilities, and their skills in these regards may not always transfer to community management.

Luckily, board members can easily overcome this problem through resources such as online courses, training from more experienced board members, and assistance from their HOA management company. If your HOA board is incurring avoidable challenges due to one or several members’ inexperience, ask your community management company about available training courses and guidance to help them step up to the plate.

2. Enforcing Community Rules

While some homeowners may not be familiar with the rules and regulations associated with HOA homeownership, community guidelines are among the most significant factors in raising property values. Rules and regulations are adopted with the community’s values and well-being in mind; they are in place to assist residents from unintentionally neglecting their home’s exterior, which left unattended could affect property values for neighboring homes.

Enforcing these rules can be difficult for HOA board members, however. Whether a board member doesn’t want to penalize their friend or they’re bending the rules to suit their own interests, inconsistent enforcement is a pervasive issue amongst community associations throughout the country. Upset residents can also cause conflicts that, if not handled correctly, can escalate to personal attacks, physical violence, or lawsuits. 

HOA board members should always remain steadfast in the face of these conflicts and apply the rules fairly and uniformly among all residents. If this is an area of concern for your HOA board, your HOA management company can take this task off your plate by enforcing your CC&Rs in a consistent, objective and timely manner, ensuring that your neighborhood remains looking its best while taking the pressure off of board members who may fear angering their friends or neighbors.

3. Proper Financial Management

Financial management can often be one of the most challenging areas for HOA board members. After all, accounting and financial management are specialized areas that require trained CPAs or accountants in most fields. However, this responsibility is left up to the HOA, even if they don’t have someone with a background in financial management on the board.

If you don’t have a board member with financial management experience, it’s always best to outsource your bookkeeping and other financial responsibilities to a trusted third party such as your HOA management firm. If your board fails to adequately handle the community’s finances, it could have devastating consequences such as shortage or bankruptcy. Inexperienced or untrained board members put your community association at risk for large financial penalties and upset homeowners. Luckily, most HOA management companies such as The Management Trust have financial experts on staff and offer HOA financial management either as an independent service or as part of their general community management services.

4. Evolving Legal Requirements

Federal, state, and local laws dictate how your community association runs, and when these laws change, your HOA needs to change with them. However, it can be difficult to keep up with ever-changing ordinances across all government bodies. This issue leads many HOAs to fall behind and unknowingly violate local laws or regulations. The board also needs to unfailingly act in the best interest of the community, or the HOA becomes vulnerable to a lawsuit claiming a breach of fiduciary duty. 

In order to avoid any potential legal issues, board members should be thoroughly trained in all legal matters surrounding community associations and their daily operations. Your HOA management company can also offer advice about your state laws and regulations and keep you up-to-date with new legislation that affects your community. Your HOA management firm will also be responsible for implementing new association laws and enforcing them among residents. By hiring an HOA management company, you can ensure that your residents and board members live comfortably without worrying about out-of-date legislation or other legal trouble.

If your Aurora, CO HOA is in need of HOA community management services, trust the industry-leading experts at The Management Trust. We provide full-service community management as well as independent financial management services to best suit your Aurora community’s needs. To find out more about our wide range of community association management services, give us a call at 303-750-0994 or fill out our online contact form today.

How To Ensure Your HOA Is ADA Compliant

Signed into law in 1990, the Americans with Disabilities Act (ADA) requires that fair access be granted to all individuals with disabilities to ensure that they can access all public services, facilities, and amenities. As part of the ADA, reasonable accommodations must be made to allow those with disabilities to access various areas of public life.

Ensuring ADA compliance for your Tacoma, WA, HOA is essential to providing equal access and opportunity for those living within your community. No one should ever be excluded because of a disability, and your HOA is responsible for making sure that certain areas of your community association are compliant and welcoming for everybody. Although professional community management services can better assist you in handling all aspects of ADA compliance, here are some of the primary steps to making sure your HOA is ADA compliant.

How the ADA Applies to Common Areas

Since homeowners associations are considered private entities, the ADA does not apply to all of its facilities and common areas. Specifically, the areas which require membership to access do not have to be ADA-compliant if no resident requires accommodation on these grounds.

However, most areas that are used by the public in some capacity must be made ADA compliant or are otherwise subject to ADA guidelines. This can include the main office, public sidewalks, any common areas that host public events, or any facilities leased out for public use. For example, if your HOA clubhouse can be leased out by the public for birthday parties, the clubhouse would fall under ADA guidelines, even if it’s technically a facility intended for residents. The same would apply to the swimming pool if it was used for a public school swim meet. When opening your HOA’s facilities to the public, it’s important to consider what accommodations and changes will need to be made in order to comply with ADA guidelines.

How the ADA Applies to Individual Homes

The ADA doesn’t require that individual residences be made fully accessible, but there are certain accommodations that must be made if requested by a homeowner. Although HOAs often have rules surrounding what renovations a resident can make to their home, renovations required for a disabled person’s quality of life would be exempt from these bylaws.

For example, ramps must be permitted to be installed for wheelchair access. Your homeowner may also be permitted to widen doorways or install chairlifts or grab bars to accommodate their needs. Pet-free HOAs will also be required to allow service dogs depending on your local laws. If you’re ever in doubt about what community guidelines must be legally circumvented to accommodate a resident with disabilities, your HOA management firm can help advise you.

HOAs and the Fair Housing Act

When considering your community’s ADA compliance, it’s important to keep in mind that the Fair Housing Act (FHA) also applies in this area. The FHA prohibits housing discrimination against individuals based on race, color, religion, sex, national origin, disability and familial status. More specifically, the law requires that disabled occupants must be provided “reasonable accommodation.”

Under the law, an HOA must make exceptions and allowances to the rules for disabled residents or make policy changes necessary to accommodate them and their needs. The law doesn’t require that common areas or individual homes be made fully ADA-compliant, but any reasonable requests from disabled residents must be taken into consideration.

Making sure that your community association is ADA compliant is a crucial step. It’s not only required from a legal perspective, but it also helps create a more inclusive and welcoming environment for all residents. If you need further assistance to ensure that your HOA is compliant with ADA regulations and all applicable laws, a professional HOA management firm can help. 

At The Management Trust, our expert team can help guide you in legal matters as well as assist with day-to-day operations that free up your HOA board members to focus on the bigger picture. From recommending trusted local vendors to providing counsel based on local laws, The Management Trust’s Tacoma, WA, office allows us to remain the No. 1 resource for professional community management in Washington. If you’d like to find out more about HOA management companies such as The Management Trust and exactly how we can benefit your Tacoma, WA, community association, give us a call today at 253-472-0825 or fill out our online contact form today. 

Why Is Data Security an Important Part of HOA Management?

Data security is an increasingly important issue for HOAs in Aurora, CO, and throughout the country, as it can significantly impact the effectiveness of the organization and the privacy of its members. However, it’s a relatively new area of concern with a lot of unanswered questions and confusion surrounding how much responsibility HOAs have in protecting member information.

It’s critical for HOA boards and their community management to understand and consider data security on a regular basis to keep your HOA within legal requirements and to give members peace of mind. To ensure the security of your HOA’s member data, here are some key points to keep in mind.

State Data Privacy Laws

While there can be a lot of ambiguity surrounding the topic of HOA data security, many states have data privacy laws in place that can serve as an initial point of reference for your HOA management company. Some states may have more general privacy laws that cover all corporate entities, while other states may have laws that are specific to homeowners associations and HOA management companies.

These laws vary from state to state, and it’s important to work with an HOA management firm in your local area so you and your management team are aware of your specific state regulations and can keep your HOA in compliance. Some states may also require you to inform community members of the procedures in place for protecting their data as well as clarifying their rights and obligations regarding this matter under local law.

Accommodating Records Requests

In almost all states, your community members have the protected right to request information despite these privacy laws. You typically can’t deny the member’s request, but many of these requested documents also contain personal information that should be protected. In this case, you’ll need to achieve a balance between accommodating legal records requests and protecting member privacy.

Some states have guidelines for this specific scenario, outlining which records may be disclosed and which may not. Other states permit HOAs to redact confidential information contained within these records. However, most states don’t have clear laws or regulations in this area, so it will be up to you and your community management company to decide how to navigate these circumstances. Generally, it’s best to consult whatever data privacy laws your state does have, even if it isn’t specific to community associations.

Seeking Legal Guidance

Since data security is so closely intertwined with local laws regarding both data privacy and HOA member rights, it’s always wise to consult with legal counsel when navigating these issues. 

Legal counsel can be particularly helpful in drafting community policies regarding the disclosure of privileged details. If you live in a state that doesn’t have clear and specific laws surrounding HOA member records requests and data privacy, speak with your HOA management company and legal team to draft a community policy that can be consulted when future circumstances arise. Consulting with legal counsel can also help mitigate your liability in the case of a privacy breach or hacking.

HOA Management and Keeping Data Safe

At The Management Trust, ensuring the utmost safety and confidentiality of homeowners’ data is our top priority. With a robust and secure system in place, we diligently protect your personal information, including ARC requests, delinquency, and account details. Rest assured that only authorized personnel have access to this sensitive data, and it is never shared without your explicit consent. 

As an added layer of protection, we limit access to employee records to those directly employed by the Association, ensuring that your information remains in the hands of trusted professionals. With our HOA management company, your data is in safe hands, allowing you to focus on what truly matters – enjoying a harmonious and thriving community.

Having a team of professionals on your side — a legal team and a professional HOA management firm — can help you navigate the waters with less stress and less legal liability. If you’re looking to implement additional data security measures for your Aurora, CO, HOA, The Management Trust’s professional community management services can help you. Turn to our trusted vendors list to find a data security service that will go the extra mile, or speak to our team about recommendations for common and effective HOA data 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 digital security plan. To find out more about our full range of community management services, call The Management Trust at 303-750-0994 or fill out our online contact form today.

How To Handle Complaints Like an HOA Management Pro in 5 Easy Steps

Resolving homeowner complaints quickly and professionally is an important part of running a successful Tacoma, WA, HOA. Even with the best-planned and most well-run community, residents will occasionally bring forward issues or grievances. When this happens, it’s important to have a plan for handling the complaint in the most effective, efficient, and professional way possible. Here are five easy steps for handling resident complaints like a community management pro.

1. Acknowledge Their Complaint

The first step in handling a complaint is always to acknowledge it. Even if the complaint might not be valid, it’s important to treat all complaints with respect and not dismiss them out of hand. Reacting poorly or unprofessionally to a resident can often make them more angry and make the situation worse. By lending an ear, you’ll not only calm their reaction, but sometimes the act of listening in and of itself will be a satisfactory resolution for the resident.

Acknowledge that you have heard the resident’s complaint, and let them know you take it seriously. Don’t make any promises as to a resolution, but it can be beneficial to offer a response timeframe, as this can ease tension and help resolve the issue more quickly.

2. Check Local Laws

Once you’ve received the complaint, the next step is to investigate whether any local or state laws are relevant to the issue. There may already be legal guidelines related to the complaint which, if overlooked, could make resolving the issue more difficult.

For example, if the complaint is about noise, there may be noise ordinances or construction laws in your area that would apply. Before making any decisions, ensuring that you’re familiar with applicable laws is extremely important.

3. Check Your Governing Documents

If the law is not helpful, check your governing documents for any relevant rules or regulations. While the law may not cover noise curfews, for example, your governing documents may have an existing rule about loud noises after a certain hour.

Seeing if the complaint is in violation of any of your community’s rules can help clarify the issue as well as identify any inadequate or outdated rules that may need to be updated. In many instances, the complaining resident may even refer you to the specific rule or document related to their issue.

4. Check with Your HOA Management Company

If the complaint cannot be handled by the HOA itself — whether the rule is too vague or there are no relevant rules altogether — it may be necessary to contact your HOA management company. HOA management firms can provide an objective evaluation of the complaint and offer support. 

Contacting your HOA management company can be a beneficial first step in the process, as they may already have experience with similar issues and can provide helpful advice. They may also have the best perspective in coming up with a win-win resolution due to their objectivity and third-party role.

5. Clearly & Quickly Communicate the Resolution

After consulting local laws, community governing documents, and your HOA management firm, you’ll need to deliver the resolution to the complainant. It may not always be an answer the resident wants to hear, but regardless, it’s important to deliver the news clearly and in a timely manner. Making the resident wait for their answer is only likely to upset them more, leaving them more dissatisfied with the response, regardless of who it favors.

Deliver the response with empathy and patience. Keep their perspective in mind, and always prioritize a calm and diffused situation rather than doing anything that may further upset them or rile them up. Offer an explanation of the resources you consulted and how you’ve arrived at this resolution to appeal to their sense of logic and fairness for the community.

If the complaint involves more than one resident, all relevant parties should be informed of the outcome so they can understand their rights and responsibilities. It’s also important to listen to feedback, as this can help identify any areas of improvement to help prevent similar issues from arising in the future.

If you want to spend less time resolving disputes and more time focusing on your Tacoma, WA, 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. They also serve as a reliable consultant for financial and legal matters, so you can reduce your liability when navigating tricky neighbor disputes. 

If you’d like to find out more about HOA management companies such as The Management Trust and exactly how we can benefit your Tacoma, WA, community association, give us a call today at 253-472-0825 or fill out our online contact form today. 

The Community Management Guide To Understanding HOA Special Assessments

Being on the board of an Aurora, CO, HOA is a big responsibility, and one of the largest and trickiest responsibilities to manage is community association budgeting. Calculating your budget for the year has a direct impact on homeowners: estimate too high, and you’ll have to raise monthly dues, frustrating your residents — but estimate too low, and you’ll have to impose special assessments for important projects down the road, also frustrating your residents.

When the latter occurs and special assessments become necessary, it can be irritating and stressful for everyone involved, from residents to community management. However, by fully understanding special assessments and the importance of HOA financial management, you can help reduce the need for these fees and increase resident satisfaction long term.

How Do HOAs Form Their Budgets?

The first step in reducing or avoiding special assessments is good budgeting. HOAs create a community budget each year based on past and projected costs for community management. These costs include landscaping, utilities, maintenance fees, and any special programs or initiatives the HOA may want to pursue. HOAs also typically set up reserves for emergency and capital expenditures.

When creating a budget, the HOA board will need to plan years in advance. They’ll need to anticipate the community’s running costs up to 10 years in advance, and if they fall short of the actual numbers, special assessments may be required to make up the difference when that time comes.

What Are HOA Special Assessments?

Special assessments are extra fees an HOA may charge when reserve funds are insufficient. These most commonly occur after an emergency or natural disaster, but they can also be caused by budget deficits, unforeseen repairs, new amenities or improper HOA financial management.

If your community association finds itself short on funds, it will issue a special assessment to all homeowners in addition to your regular annual or monthly fees. Since it’s an unforeseen cost for the residents as well as the HOA, it can often create a lot of pushback and frustration from your homeowners, who may not have the extra funds to comfortably accommodate the additional charge.

Why Are Special Assessments Necessary?

Although frustrating, HOA special assessments are necessary. While special assessments shouldn’t be frequent, budget predictions are never going to be consistently accurate over the period of five to 10 years. Inflation, local community changes and many other factors cause yearly costs to fluctuate, and it’s not uncommon for an HOA to find itself short of its predicted reserves.

Natural disasters and emergencies also can’t be predicted, so special assessments are unavoidable in the long term, even with the best HOA financial management. Without these assessments, amenities, fixtures, and communal areas may remain in disrepair or deteriorate over time. These quality declines will also elicit complaints from residents, so special assessments are often the best course of action despite homeowner dissatisfaction.

How Often Should You Charge Special Assessments?

Although special assessments are never entirely avoidable, they shouldn’t be frequent. Communities with strong HOA financial management will have reserves they can utilize in case of emergencies or natural disasters, providing a financial buffer that helps avoid extra assessments. As such, your HOA should only charge special assessments on rare occasions.

If a special assessment does become necessary, your HOA board should try to work with homeowners to establish a more budget-friendly payment plan. Instead of charging a large lump sump in one month, homeowners are more likely to be able to afford a smaller amount due monthly over the course of six months to a year.

At The Management Trust, we assist Aurora, CO, HOA boards with handling difficult tasks such as implementing and collecting special assessments. We also provide comprehensive HOA financial management that can help you more accurately calculate future costs and avoid having to issue special assessments to residents. 

More than 1,500 communities throughout the country trust The Management Trust to get the job done right, including dozens throughout the Aurora, CO, area. To find out more about our community management services, call The Management Trust at 303-750-0994 or fill out our online contact form today.