How Do Fiduciary Duties Play a Role in HOA Financial Management?

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Being the board member of a Tacoma, WA HOA is no lighthearted task. 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.

As a result, fiduciary duties are essential to ensure that all parties involved in financial management are held accountable and responsible. After all, fiduciary duties play a critical role in HOA financial management and can make or break a Tacoma, WA community association’s success.

What Is a Fiduciary?

A fiduciary is a person or organization legally obligated to act in the best interests of another party. This means that fiduciaries must put the interests of the party they represent before their own interests. Fiduciary duties are the duties that a fiduciary owes to their beneficiaries, such as the duties of loyalty and care.

What Are the Duties of Fiduciary Responsibility?

Fiduciaries are required to exercise their powers in accordance with the duties set forth by local law. As mentioned above, there are two primary legally obligated duties when acting as a fiduciary: duty of loyalty and duty of care. 

  • Duty of Loyalty: Duty of loyalty requires the fiduciary to protect the interest of the association and not take any action that may be contrary to its interests. This includes refraining board members from taking advantage of their position and deriving personal benefits as a result of their elevated status. They cannot use their position of power to further their private interests, and they must always disclose any potential conflicts of interest. Violation of the duty of loyalty could result in liability for all resulting damages.
  • Duty of Care: Duty of care can also be referred to as the duty to perform due diligence. Simply put, this means that board members have the responsibility to perform all tasks required of them, be active participants and make informed decisions that are in the best interest of the community. Failure to carry out your responsibilities as a board member or failure to take your position seriously are considered forms of breach of the duty of care. If you accept the responsibility of becoming a board member, you’ll need to perform all associated tasks with thought, care and fairness.

How Are HOAs Protected from Fiduciary Decision-Making Liability?

Although there are risks to performing your job as a board member without proper care, there are protections in place to limit the liability of HOA board members when acting as fiduciaries. After all, most board members are volunteer residents, not community management professionals, so honest mistakes may happen, and it’s important for board members to feel protected in their roles. Here are a few ways in which your HOA can limit its liability:

  • D&O Insurance: Directors’ and officers’ coverage will protect board members against errors while serving their community.
  • Governing Documents: Most communities will have a hold harmless agreement or indemnity provision in their bylaws, which limits a board member’s personal liability while in office.
  • Statutory Protection: The Davis-Stirling Act protects volunteer board members from personal liability while serving on the board of directors, provided that they might specific criteria. Your state’s Corporations Code can also provide protection if you had no reason to believe that your action was unlawful at the time it was committed. 

With all liability protection measures, it’s important to note that these typically only apply if you’ve acted in good faith and in the best interest of the association. Willful neglect or abuse of your duties will not often be covered by these measures.

If you want to ensure that your board and all of its members are acting within the law and within your duties as a fiduciary, consulting an HOA management firm can help give you peace of mind and enable your community’s long-term success. 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 Tacoma, WA, call The Management Trust at 253-472-0825 or fill out our online contact form today. We look forward to working with you!

How Do HOA Management Companies Make Life Easier for Community Associations?

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The task of managing an Aurora, CO HOA can be overwhelming, especially since many HOA board members are community volunteers tasked with significant responsibilities. That’s why many HOAs turn to professional community association management firms to help take care of day-to-day tasks.

HOA management companies have the manpower and industry knowledge to expertly handle your community’s needs, from daily maintenance tasks to behind-the-scenes guidance. If your HOA board is feeling overwhelmed with all of the tasks necessary to run a successful community, HOA management firms can offer key community management services that make your life easier.

Advisory Services

One of the most important services provided by HOA management companies is advisory services. Although final decisions are always made by community board members alone, HOA management companies can provide the board of directors with valuable advice and guidance on topics such as budgeting, legal issues and maintenance. 

HOA management firms can also help the board of directors stay up-to-date on changes in laws and regulations that may affect the community. With so many daily tasks requiring your board’s attention, it can be challenging to keep up with ever-changing local laws and regulations, especially if you don’t have a legal professional on your board. Having an experienced advisor on hand can help make sure your association is making the best decisions for the community.

Administrative Support

HOA management companies can also provide administrative support to the board of directors. By outsourcing tedious administrative tasks, the HOA board members can focus their time and energy on other important issues, such as key decision-making during board meetings. 

Daily administrative items that your HOA management company might perform include:

  • Paying bills
  • Collecting assessments
  • Planning and executing community events
  • Managing HOA correspondence
  • Managing vendor contractors
  • Facilitating board meetings

HOA management companies can also handle the day-to-day operations of the association, freeing up the board of directors to focus on more impactful tasks.

Routine Maintenance

Day-to-day operations can take up a considerable amount of time for board members, and as volunteers, you may not always have time to do the many tasks that need to be completed each day. Luckily, your HOA management company can perform ongoing maintenance and regular inspections to ensure that all areas of your community are in good working order.

Daily community management services can include vendor coordination, resident communications, repair oversight, expense tracking and more. Your HOA board will authorize your community management firm to perform specific tasks, so what exactly your management oversees is up to the discretion of your board.

Overall, HOA management companies can take the burden off of your board and ensure that your community is always running smoothly. If your HOA is looking for help managing the association’s day-to-day tasks, an HOA management company may be the right choice for you. 

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 Can HOA Financial Management Help Make the Most of Your HOA’s Reserve Study?

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A reserve study is an important tool for any Tacoma, WA homeowners association. It provides a comprehensive look at the association’s financial situation and allows the board to plan for future maintenance and replacement of community assets. 

However, a reserve study is only as good as the information it contains and the board’s ability to use it effectively. With proper HOA financial management, you can get the most out of your reserve study and ensure your community remains well-maintained, well-funded and attractive for years to come. 

What Is a Reserve Study?

A reserve study is a detailed analysis of your community association’s assets and financial health. A reserve study aims to outline how your HOA plans to spend its funds in the next 30 years so it can maintain enough money to do so. 

While each state has its laws regarding how often a physical inspection must take place, you need to assess your reserve study each year so you can include up-to-date information in your HOA’s annual budget report.

Complete a Physical Inspection

Most states require that you conduct a physical inspection every three or so years as part of your reserve study analysis. During this inspection, your reserve analyst and HOA management firm representative will examine common areas, assessing what may need to be maintained or replaced in the future.

Common areas for evaluation include roofing, plumbing, electrical wiring, streets and sidewalks, landscaping, irrigation, and any amenities. The condition of these and the expected cost of repairs in the future will dictate how much money you’re recommended to have in your reserve.

Undergo a Financial Analysis

Next, you’ll undergo a financial analysis of your HOA’s reserve fund. This will provide you with an understanding of the current and projected balances in the reserve fund and the impact of any new expenses or investments on the association. 

This information is critical in helping you plan for future expenses and ensure sufficient funds are available. To make your information as accurate and thorough as possible, ask your community association management company to assemble all the necessary financial documents, including vendor invoices, bank statements and cost estimates.

Anticipate Commonly Overlooked Issues

Whenever estimating future financial needs, it’s always best to include a buffer for unexpected costs. Your reserve study should be thorough, but it may still fail to cover unplanned-for expenses such as natural disaster damage or emergency repairs. Commonly overlooked areas include:

  • Unanticipated repairs
  • Roofing repairs or replacement
  • Emergency damage
  • Increased prices for raw materials

Understand Your HOA’s Funding Plan

Understanding your HOA’s funding plan is also key to making the most of your reserve study. Knowing where your funds are coming from and how they are allocated will help you make informed decisions about how to use them wisely. 

How will annual dues change over time? Will you hold fundraisers or rent out amenities? Ask your HOA 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.

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 Tacoma, WA, call The Management Trust at (253) 472-0825 or fill out our online contact form today. We look forward to working with you!

Addressing Your Aging HOA’s Essential Needs in 4 Easy Steps

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Running an Aurora, CO HOA, much like owning a home, involves various maintenance levels as the property ages. While care may be minimal in the first few years — fixing minor damage as it arises — the scope of the issues and the costs associated with them tend to rise drastically as the years go on. Repairs become replacements, and your community association management strategy will almost certainly need to evolve to meet these evolving needs.

If your community can measure its life in decades, you may find that your 30-year-old reserve studies don’t accurately estimate the current costs of replacement and operation. As such, it’s important for HOA management to reassess these costs periodically and anticipate future financial needs. Here are four simple steps to doing so:

1. Establish a Clear Vision

The primary purpose of an HOA is to maintain the value of its properties and the quality of life for its members. As a community association ages, it is important to have a clear vision for the future. Take time to consider what you would like the community to look like five, 10 or 20 years from now. This can include things like increasing property values, maintaining the integrity of the community and providing amenities that are attractive to homeowners. 

Once you have an idea of the long-term vision for your HOA, you can begin to create a strategic plan to make it a reality. This plan should include actions that the board will take to achieve these goals as well as financial milestones that will need to be hit to successfully fund these initiatives. If you’re struggling with where to start, ask your HOA management firm for examples of strategic plans from other communities in your area.

2. Prioritize Long-Term Financial Success

To ensure that your HOA is able to meet its long-term goals, it’s vital to prioritize long-term financial success over pleasing residents in the short term. While residents are never happy about increased dues, it’s a necessary evil as inflation increases and maintenance costs rise.

Take a realistic look at your current and future financial needs, and allow dues to track incrementally alongside the cost of maintaining property values. Many community associations are tempted to cap association dues at an arbitrary ceiling. However, this often hurts the HOA long-term and leaves it with lower reserves than are needed to successfully operate. Prioritizing accurate reserve estimates will ensure that the association can cover its costs in the future.

3. Evaluate Your Reserve Studies

A reserve study is an essential tool for HOAs. It helps the association plan for long-term maintenance, repairs and improvements, and it provides a realistic assessment of how much money is needed in reserves to cover those costs. Some states have requirements about how often reserve studies must be conducted, but it’s always a good idea to take a closer look at your reserves every few years. 

Compare your current reserves to your anticipated maintenance and repair plans, both in the immediate future and over the next 15-30 years. Draft a strategic plan that ensures your HOA collects enough money to fund its vision over that period. If you’re feeling overwhelmed, your HOA management firm can help you draft a plan and compare it to your current reserve study.

4. Have Clear & Consistent Communication

All of these financial plans, studies and regulations are hugely important for the success of your community association, but they aren’t often top-of-mind for your residents. When it comes time to raise dues in accordance with anticipated costs, HOA boards can often be met with a lot of resistance because homeowners are only privy to short-term plans, not long-term necessities. 

It’s important to clearly and concisely communicate the financial objectives of your HOA to all community members. This ensures that everyone understands the long-term plan and is more likely to support future dues increases. Make sure to provide regular updates and discuss any changes or modifications to the financial plan. This will help build trust and create a sense of solidarity within the community. 

If you want to implement more modern resources for your community members but you’re not sure where to start, contact The Management Trust today. We have a comprehensive range of community management services, including HOA financial management, and a team of experts who can assist you in every aspect of community association management. To learn more about how The Management Trust can enable your Aurora, CO community’s success for decades to come, give us a call at (303) 750-0994 or fill out our online contact form today.

5 New Year’s Resolutions Your HOA Can Use in 2023

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With a new year beginning, many homeowners associations in Tacoma, WA and across the country are looking for ways to make the upcoming year a success. While the resolution to stay healthy and get more organized are on the minds of many, HOAs have the unique opportunity to make resolutions that will benefit the entire community.

If you want to strengthen your community and improve the quality of life of its residents, consider implementing these five resolutions in 2023.

1. Audit Last Year’s Expenses

It’s important for your HOA to regularly audit its financial records to stay on top of your budget and ensure that the funds allocated are being used responsibly. This is especially important in the new year since it will give the board a clear picture of where their money has been going and what needs to change to be more financially responsible.

After reviewing all previous costs, plan a new budget to save money in the new year. Residents are rarely happy with an increase in HOA dues, so cutting costs where you can to keep dues the same will be much appreciated by residents — especially as costs in many other aspects of their life have recently increased.

2. Review Vendor Contracts

The new year is a great time to look closely at your vendor contracts and assess which vendors are doing a good job and which ones leave something to be desired. Some vendors may have multi-year contracts that can’t be renegotiated, while others may seek to raise their fees in 2023.

This vendor review will help the board ensure that all contracts are up-to-date and that all vendors are performing to the standards outlined in the agreement. During the review, the board should also take the opportunity to search for better deals and potentially renegotiate rates to save money. This can help keep HOA dues the same as in 2022, increasing homeowner satisfaction.

3. Create a 2023 Event Calendar

With a new year comes new events! If you haven’t already, create a refreshed community event calendar for 2023 and distribute it to all homeowners. This calendar can include everything from social events to fitness classes and board meetings so that every resident can get involved in community events.

Not only does a clear and organized event calendar give the community the opportunity to participate in more activities, but it also allows the board to verify more easily that they’re taking full advantage of their budget and available resources.

4. Review Your Community’s Emergency Plan

It’s important for any HOA to have a plan in place in case of an emergency. This plan should include procedures such as evacuation routes, communication protocols, and emergency contact information. Ensure that each homeowner knows how to evacuate quickly and where to seek refuge.

This is especially important for homeowners associations in areas that experience natural disasters such as wildfires, earthquakes, tornados or hurricanes. At the start of the year, review your community policy for power outages, severe weather, and other natural disasters, and share an updated emergency plan with every resident in your neighborhood.

5. Update Your Community Management Plan

It’s always a good idea to meet with your HOA management firm and review your community management goals for the coming year. Collaborate with your community management company to create a comprehensive plan that includes the board’s vision for the community, its goals, and any strategies the board plans to use to achieve these goals. 

The plan should also cover the topics of property maintenance, rule enforcement, finances, communications, policy development and asset protection. This plan may look similar to last year’s, but it’s still important to have up-to-date information you can share with your homeowners and implement for an effective community association.

By implementing these five resolutions, board members can ensure that their community association is prepared for a successful and organized 2023. Having the tools you need to manage your community and keep your members informed and engaged is invaluable, so consider hiring an HOA management firm to execute your goals for the new year.

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. To learn more about our comprehensive HOA management services in Tacoma, WA or our Trusted Partners Program, call The Management Trust at (253) 472-0825 or fill out our online contact form today.

5 Essential Community Association Management Terms You Should Know

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If you’re involved in an Aurora, CO community association, it’s important to understand the key terms and roles involved in day-to-day HOA operations. By understanding these terms, community leaders and HOA managers are better equipped to care for their communities and ensure that all residents are properly taken care of.

Whether you’re buying a home in a community association or have been elected to your HOA’s board, here are five essential community association management key terms you should know.

1. HOA Member

An HOA member is simply a homeowner within your community association. Membership in an HOA is a mandatory membership for individuals that purchase a home or lot within a community association.

An HOA is a nonprofit organization that represents the interests of the property owners within that community, so by paying your HOA dues, you’re essentially paying for a membership to that neighborhood organization.

2. Board of Directors

The board of directors is the governing body of the HOA. They’re responsible for overseeing the day-to-day operations of the association and making decisions on various matters on behalf of the neighborhood’s members. The board is made up of elected homeowners within the HOA, all of whom volunteer their time to act as fiduciaries of the corporation.

As fiduciaries of the community association, board members have fiduciary duties that they must carry out. HOA board members must act in the best interest of their fellow homeowners, regardless of personal relationships, financial circumstances or any other factors. All actions must be recorded, no single board member can act unilaterally, and all board decisions are available to the entire community association membership.

3. Board Meetings

Board meetings are regularly scheduled meetings of the board of directors. At these meetings, the board will discuss and vote on various matters related to the HOA, such as budgeting, assessments, rules and regulations, and other matters. 

There are two primary types of board meetings — regular sessions, which are open to all HOA members, and executive sessions, which are private meetings of the board. Regular sessions are where all of the HOA’s operational decisions are made. Homeowners can sit in on the meeting and participate in any part of the agenda open to HOA members, such as homeowners forums. Executive sessions, on the other hand, are not open to the HOA membership, and meetings are not recorded in detail. These meetings are typically for sensitive subjects such as legal issues or personnel problems.

4. Assessments

Assessments are mandatory dues or fees that all community members must pay. These fees are collected on a regular basis, such as monthly or annually, and are used to pay for the maintenance of the community association and its amenities. 

There are several types of assessments: regular assessments, maintenance assessments, extraordinary assessments or special assessments. Your maintenance assessment is also known as the HOA fee. This fee pays for community management and the upkeep of all common areas, so you can continue to live in a desirable neighborhood with solid property values.

5. HOA Management Company

An HOA management company is a company that is hired by the HOA to manage its day-to-day operations. HOA management companies are typically responsible for collecting assessments, enforcing rules and regulations, and providing other administrative services to the HOA. 

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. Hiring an HOA management firm is one of the best decisions you can make for your community, as it can help ensure that the community association is properly managed and its members are always taken care of.

The Management Trust is an HOA management firm that has helped communities throughout Aurora, CO 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 community management 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 the big picture. For more information about our community management services in Aurora, CO or to request a proposal, give us a call at (303) 750-0994 or fill out our online contact form today.

What Is the Best Way to Prepare Your HOA for Winter Snow Removal?

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December and January are the snowiest months in  Aurora, CO, so it’s important that your HOA has a clearly established snow removal policy if you want your roadways to stay safe for all residents.

Cities will typically plow major public roads if enough snow falls, but homeowners in snowy areas know that this service is largely unreliable and often doesn’t extend to smaller neighborhood streets. That’s why it’s best to have an independent snow removal plan for the winter months.

Be proactive in arranging snow removal

By the time the snow has fallen, it’s likely too late to arrange for removal. Snow removal services can be booked weeks or months in advance in snow-heavy areas, and even if they have availability, their first glimpse of your property shouldn’t be when it’s buried in snow.

Instead, call your local snow removal service during fall or winter before the first major snowfall. This will allow their team to indicate the locations of curbs and driveways so the plow can maneuver through your neighborhood safely, accurately and effectively. Advance booking will also ensure that you get priority over last-minute calls when the snowstorm does roll in.

Have your landscapers clear walkways

Not only streets and parking lots need to be cleared of snow. Sidewalks and other pathways must remain safe for pedestrians, so work with your landscaping team to create a winter snow removal plan.

Most landscapers will offer snow removal and de-icing services during the winter when grass and other greenery no longer grows, so consult your landscaping vendor about your options. They can clear shared walkways, HOA amenities, and other community areas to prevent falls and injury.

Remind homeowners of their snow removal duties

In most community associations, homeowners are responsible for shoveling their driveways as well as the sidewalks in front of their homes. However, not all homeowners will remember this duty or perform it with urgency.

To avoid a pile of winter citations, send a friendly reminder to homeowners as winter sets in. In addition to refreshing their memory about which parts of their property they need to shovel, you can also recommend HOA-approved snow removal companies for them to utilize or share good deals on snow shovels and other gear.

Assist residents unable to shovel snow

Although homeowners have a responsibility to shovel the snow in front of their own property, you should give grace to homeowners who may not be physically capable of doing so. Most HOAs have elderly homeowners, new parents or residents with disabilities, and doing your part to accommodate their circumstances will go a long way toward member satisfaction.

To keep your HOA tidy, safe and well-shoveled, organize a help system that pairs homeowners unable to shovel with volunteers. You can also recommend a landscaper or snow removal service that they can pay to remove the snow for them. Ask your HOA’s landscaping vendor if there is any special pricing available for individual homeowners who may need their property shoveled for them.

With more than 30 years in the industry and over 1,500 communities successfully managed, The Management Trust has the expertise to guide you in all aspects of community association management, including snow removal vendor sourcing. To find out more about our comprehensive HOA management services or our Trusted Partners Program, call The Management Trust at (303) 750-0994  or fill out our online contact form today.

4 Major Reasons Why Your HOA Needs an Expert Community Association Accounting Team

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Today’s community associations in Tacoma, WA and nationwide are faced with an ever-changing landscape of legal and financial requirements. As integral parts of an HOA’s solvency, these financial obligations require skillful management that often can’t be achieved by a community’s volunteer board members alone.

From collecting dues to managing investments, choosing an HOA management firm with an expert accounting team is essential to ensuring your neighborhood’s long-term success. Here are four of the main reasons why your HOA needs an expert community association accounting team behind it.

1. Accurate financial statements

Most community associations are legally required to maintain accurate financial statements at all times because they function as nonprofit corporations. Your HOA board also needs to be able to accurately track the income, expenses and assets of your community association to make sure resources are being managed effectively.

Accurate financial statements provide a roadmap for the HOA to understand its financial health and how to make decisions that will benefit the community and its residents. If your assets and expenses aren’t meticulously tracked, you could put the financial health of your community association in jeopardy.

A professional HOA financial management team will handle all financial responsibilities associated with statement-keeping, including collecting assessments, pursuing delinquent assessments, generating financial statements and making association tax payments.

2. Specialized industry experience

HOA accounting differs significantly from accounting for individuals or for-profit businesses. As such, this niche category should be handled by a team that works specifically within the HOA financial management industry and is up-to-date with its unique requirements. 

HOA financial management firms will be able to accurately track and report financial data in accordance with industry standards and regulations, and they’ll also be able to offer advice based on their knowledge of the industry. As a nonprofit, all money that comes in must be paid out, and HOA management experts will know this and the best ways to handle these financial matters efficiently and effectively.

3. Local knowledge

Not only does your accountant need to be familiar with the community association industry, but they also need to be aware of laws and regulations in your local area. Legal and financial obligations often vary by state, county or even city, so you need an expert HOA financial management team with managers in your local area.

Unlike many of the large national HOA management companies, which centralize their accounting teams, The Management Trust has 24 local offices across the western United States. This allows us to provide the resources and expertise of a large, national corporation while remaining in touch with local residents’ needs as well as local legal and financial obligations.

4. A full support team

Even small HOAs require significant day-to-day support. That’s why we have an extensive team of experts ready to assist whenever you need them. We create personalized one-on-one relationships with our board members, and we strive to always be available for any questions or concerns. When it comes to financial matters, responses are urgent and often time-sensitive; that’s why The Management Trust always strives to be proactive rather than reactive, making your HOA living experience hassle-free — including the financial aspects of your operation.

At The Management Trust, we offer independent HOA financial management services as well as full-service community management. All of our financial operations are SSAE 116 compliant and are highlighted by our proprietary TrustLink software. Our financial services include statement organization, record-keeping services, fund management, direct deposit, vendor billings management, audit coordination, escrow services and much more. To learn more about how our expert HOA accounting team can assist your Tacoma, WA community association, give us a call at (253) 472-0825 or fill out our online contact form today.

4 Tips for Choosing the Best Vendor for Your HOA

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When it comes to maintaining your Tacoma, WA community, vendors are an essential part of the equation. Whether your amenities need repair or your landscaping needs maintenance, there are many vendors to hire, manage and coordinate as an HOA board, and it can be a deceptively complicated task.

Finding the right vendors for your community is essential for receiving quality service at a reasonable price. If you choose the wrong vendor, you could be left with poor workmanship, sky-high bills or even a legal headache. So how’s an HOA board to know who to choose? Consider these four tips for choosing the best vendor for your HOA.

1. Do Your Due Diligence

Adequate research is key to finding the right vendor for your needs. When setting out to find a new vendor, make sure that any candidates possess all current licenses and insurance. You should also review online testimonials and assess their overall customer satisfaction as best you can. Once you’ve verified their qualifications, request a proposal or quote for the project at hand.

Analyze each proposal and ensure that they are thorough and realistic in their details. Keep these questions in mind: 

  • Does the scope match your expectations? 
  • What is included and excluded from their service? 
  • Is their pricing realistic? 

A proposal that’s too vague or sounds like a stock answer is something to be wary of, as it could indicate a lack of attention to detail or a lack of understanding of the project.

2. Get Multiple Bids

One of the biggest mistakes a community association can make is soliciting a quote from only one vendor. This may be acceptable if it’s a vendor that you’ve worked with before and the project is a small one, but if you have a project exceeding several thousand dollars or if you’re searching for an entirely new vendor, you should always collect at least three bids to compare.

Comparing multiple bids not only allows you to compare pricing and find a vendor within your budget, but it also allows you to see who best understands the scope of the project. Scheduling a face-to-face meeting with the vendors can also help you decide which one is the right match for your community.

3. Consult Your HOA Management Firm’s Approved Vendors List

If you have any doubts about your current vendor shortlist or if you simply want to make the entire process easier, you can select from your HOA management firm’s approved vendors list. Almost every community management company will have a list of approved or preferred vendors they have vetted for quality.

The Management Trust’s Trusted Partners Program, for example, brings together great vendors with the HOAs that need their services. The Management Trust’s vetting process only accepts vendors who deliver high-quality services, in a cooperative manner, for a fair price. By using the Trusted Partners Program, HOA boards can find a trustworthy vendor while saving dozens of valuable hours on research and other due diligence. The Management Trust even provides a $2,500 client satisfaction guarantee for work performed by enrolled vendors. 

4. Work Alongside Your HOA Management Company

Whether or not you choose to use a vendor affiliated with your community management, your management team should work with you to find the right vendor. This includes analyzing and comparing bids, managing day-to-day operations of the project, and ensuring that the project is completed on time and within budget.

Your HOA management firm should always be impartial and remain an advocate working on your behalf. If they pressure you to work with a vendor they’re affiliated with or fail to advocate for your best interests when utilizing an affiliated vendor, it may be time to find a new HOA management company with customer service and resident happiness at the heart of their operation.

With more than 30 years in the industry and over 1,500 communities successfully managed, The Management Trust has the expertise to guide you in all aspects of community association management, including vendor sourcing. To find out more about our comprehensive HOA management services or our Trusted Partners Program, call The Management Trust at (253) 472-0825 or fill out our online contact form today.

community management

The Top 3 Traits of Successful Community Association Managers

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Your Aurora, CO home is one of the biggest parts of your life; it’s your sanctuary. It’s where you rest your head at night and watch your kids grow up. Ensuring that you’re happy with your home and your local community will improve your quality of life overall. 

That’s why it’s important to find an HOA management firm 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 community management that can help achieve your goals for 2023, look for these three traits that all successful community association management firms share.

1. They Respond with Urgency

When it comes to matters that affect your quality of life at home, time is of the essence. Urgency and respect for your time are some of the most valuable traits in an HOA management company.

The right community management firm will not take weeks to respond to issues, nor will they issue a templated one-size-fits-all response. Rather, a successful community association manager will quickly and effectively respond to your request with a focused and customized solution.

Offering residents a human response that assures them that their matters are being taken care of will increase resident satisfaction and make the community an overall more pleasant place to live. Even if the issue is not incredibly urgent, letting the resident know promptly that their issue has been received is an excellent way to build trust between HOA management companies and their residents.

2. They’ll Tie Up All Loose Ends

Once an issue has been responded to and resolved, a premier HOA management firm will ensure that they’ve closed the loop. This means tying up all loose ends and checking in with the resident to verify they have no further problems.

Communicating with residents to ensure that all matters have been fully resolved is imperative for maintaining resident satisfaction. It prevents minor issues from escalating into major problems, and it also helps improve communication and trust between the resident and your HOA management firm.

3. They Have Elevated Customer Service Skills

All successful HOA management companies should have a passion for improving quality of life at the center of what they do. Helping others and keeping people happy is the crux of community management services, so a high-quality HOA management firm should offer unparalleled customer service.

This means not only completing all resident requests but proactively working to improve the HOA and further its success. Relationships should be authentic and meaningful, not just transactional. If your community association manager doesn’t make you feel like their first priority, you should look elsewhere for industry-leading community management services.

At The Management Trust, we create direct relationships with each of our HOA board members to ensure that they always have a reliable point of contact and can ensure all needs are met. This personal approach, paired with our employee-ownership difference, enables us to offer a personalized HOA management service unlike any other. Where other HOA management companies can be reactive, we strive to always be proactive and ensure that your Aurora, CO HOA is a happy and stress-free place to live. If you’d like to learn more about The Management Trust difference, give us a call at (303) 750-0994 or fill out our online contact form today.