An integral part of the smooth operation of any Tacoma, WA HOA is meetings. Although not as action-packed and exuberant as the town hall meetings depicted in movies, they’re certainly not as bad as your Friday afternoon work meeting either. HOA meetings foster a strong sense of community and help residents become more engaged in their community association. They’re also a functional necessity, as this is when all of the decisions that most significantly impact your HOA are made. If you live in an HOA, and especially if you are an HOA board member, these are the five types of community association meetings that you should be familiar with.

1. Board Meetings

Board meetings are often held either quarterly or monthly and are used to discuss a range of issues on the pre-decided agenda. Agendas are planned out to the minute, and copies are given to community members for review since the topics on the agenda are the only ones allowed to be discussed during these meetings. Although all board members must be present for board meetings, the meetings are open to all members of the HOA if they wish to attend.

2. Committee Meetings

Larger community associations may have committees that handle specific aspects of your HOA’s operation. Examples include landscaping committees, safety committees, newsletter committees, welcome committees, and many more. Meetings can be held weekly, monthly or annually, depending on the committee. At these meetings, committee members discuss prominent topics relevant to their duty, such as the next HOA social event or any crime trends in the area. While these meetings aren’t always open to every member of the HOA, minutes are almost always available upon request.

3. Annual Meetings

The annual HOA meeting is one of the most important in any community association. Usually held at the start of the new fiscal year, annual meetings are led by the board president and announce new developments such as the budget, board members and major projects for the upcoming year. The largest and most important topics affecting the community will be discussed here, and the meeting is open to all members of the community.

4. Executive Sessions

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

5. Special Meetings

Special meetings happen in a rare emergency event that requires immediate action with short notice. These causes can include natural disasters, property damage, or special assessments. Board members, community members, and anyone else specified in the community’s bylaws can call a special meeting if they feel it’s warranted — although typically, more than five percent of residents will need to sign off before a special meeting can be called.

HOA board meetings can sometimes be a full-time job in and of themselves; handling the many other aspects of successful community management can be overwhelming and even impossible if your board is small, inexperienced, or otherwise just busy. Professional HOA community management is beloved by community association board members across the country because it lightens the load on Tacoma, WA board members and allows you to focus more of your time and energy on your community’s overall well-being — including the obligatory meetings. If your community association could benefit from a professional HOA management company, call The Management Trust at (253) 472-0825 or fill out our online contact form today. We’ve been one of the nation’s leading HOA management firms for 30 years, and we’d love to help your Tacoma, WA community thrive as well.

In many ways, Tacoma, Washington, HOA board members must be jacks of all trades. From implementing policy changes to navigating homeowner disputes and managing finances, there are many tasks that an HOA board must undertake as part of their obligatory duties. Understandably, your board members may not have the professional expertise in HOA financial management that an accountant or other expert might; with so many other responsibilities to manage, it can be hard to know where to start. If you need HOA financial management guidance, try these four simple yet critical financial tips that all HOA boards should know.

1. Evaluate Insurance Policies

During your annual budget review, take time to review your existing insurance policies and refine them to cut costs, if possible. While you should always make sure that you have ample insurance coverage, you may eliminate specific policies that are unnecessary. For example, your HOA may not need coverage for damages resulting from natural disasters such as earthquakes or snowfall, depending on your region. You should also compare your insurance statements to previous years to see if rates have increased. Shopping around to different insurance companies may help you find a comparable policy at a lower rate. Just make sure that you have enough coverage for all of your community association’s needs!

2. Double-Check Financial Reports

Mistakes happen, but financial mistakes can be highly inconvenient and even costly. Make sure that your financial reports are precise and detailed. Don’t make categories that are too vague or commingle funds. Have several people check the reports to ensure no mistakes and compare reports from the year before to avoid apparent discrepancies. Make sure that you are creating clear and separate funds for operations, deferred maintenance, and reserves. Detail and accuracy will make life much easier for your HOA in the long run.

3. Create an Investment Plan

If you want to mitigate any potential future financial problems, consider creating an investment plan for a portion of your reserve fund. Allowing your funds to earn returns is an excellent way to protect your community in the future and make each dollar go the extra mile. However, make sure that you follow any investing guidelines set out in your community’s bylaws. There may be restrictions on how much you invest and in what you can invest. Regardless of bylaws, make sure that your investments are low-risk and can be converted into cash quickly if needed.

4. Leave it to a Professional HOA Management Company

If you want to ensure that your community’s finances are in the best hands possible, invest in professional HOA financial management. Many community association management companies such as The Management Trust offer community management services, including HOA financial management. Our financial services include record keeping, fund management, collection services, monthly statement prep, budget preparation, audit coordination, escrow services, and more. When you leave your HOA financial management to trained experts, you can rest assured that your community’s budget is in good hands while your board has more time to focus on the bigger picture.

Especially in the wake of the pandemic, many community associations are taking a closer look at their financial records and planning for the worst-case scenario. However, it can be difficult for everyday board members to tackle these nuanced financial matters. If you want only the best HOA financial management for your Tacoma, Washington, community association, trust the experts at The Management Trust. To find out more information about our full range of community management services, including HOA financial management, call The Management Trust at (253) 472-0825 or fill out our online contact form today.

Budgeting is an integral part of every Tacoma, Washington, community association’s operation. Planning the annual budget by calculating expenses is how every HOA decides upon homeowner dues. Inaccurate budgeting at the start of the year could lead to financial struggles for the HOA by the end of the year or in the following years, and further result in the dissatisfaction of residents. To avoid financial disaster, make sure to avoid these five key mistakes when planning your HOA’s budget for the upcoming year.

1. Not Reviewing Past Years’ Budgets

The best way to get an accurate estimate of the upcoming year’s expenses is by viewing the expenses of previous years. Reviewing past years’ financial reports will help you identify trends and anticipate costs for the new year. It will also help you identify mistakes and correct them for the future. Just don’t forget to account for inflation and any changes in vendors that may increase costs.

2. Creating Vague Categories

The more comprehensive and detailed your expense report is, the more accurate it will be in predicting future costs. Avoid lumping categories like landscaping, plumbing, and electrical services together into “maintenance”. Create specific categories for each product and service paid for so you can better track your expenses year-over-year and create more accurate budgets in the years to come. If creating such a detailed report feels too intimidating or time-consuming, reach out to an HOA management firm like The Management Trust about their HOA financial management services.

3. Not Negotiating with Vendors

When it comes time to plan your HOA’s new annual budget, take the time to re-evaluate your vendor contracts as well. Track vendor costs year-over-year, and ask your current vendors if there are any changes to their rates in the year to come. Inquire about any discounts, especially if you have an established reputation and loyalty to the company. If you’re unsatisfied with your vendors or their new rates, look around for new vendors who may offer the same quality for better prices.

4. Failing to Add a Buffer

If there’s one thing that’s inevitable, it’s unexpected expenses. Surprise costs can — and will — pop up at any time, so your budget needs to have some breathing room to cover these costs. Although it can be tempting to try and keep your budget as tight as possible so homeowner dues will be lower — making your residents happy — it’s better to set higher, consistent dues than to land in hot water financially or have to unexpectedly raise dues later in the year. It’s better to end up with a surplus of money at the end of the year than a deficit. Any excess funds can be placed in the HOA reserve fund for emergency costs in future years.

5. Settling for Cheap Insurance Policies

Cutting corners to save money is never a good idea, and in no area is this more true than HOA insurance. If you face costly expenses due to legal ramifications, natural disasters, or any other range of issues, insurance can help soften the blow and significantly reduce the amount of financial stress placed on your community association. Choosing the cheapest insurance policies that don’t offer adequate coverage may save you money in the short term, but that savings will likely be blown out of the water by the first issue you encounter that you must pay out of pocket for. It’s always better to be safe than sorry and invest in a good insurance policy that offers adequate coverage for your Tacoma, WA, HOA.

Financial planning and budgeting are some of the most important aspects of an HOA’s successful operation. It’s the number one area where you need to dedicate diligence and ensure accuracy, or you risk placing unnecessary financial stress on your community association and its residents. Luckily, most community association management firms such as The Management Trust offer comprehensive HOA financial management services including record keeping services and budget preparation. If you’d like more information about The Management Trust’s full range of community management services, including HOA financial management, give us a call at (253) 472-0825 or fill out our online contact form today. 

HOA board members in Tacoma, Washington, 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. That’s why it’s so crucial to properly train your board members in all things HOA management.

1. Proper handling of funds

Board members are responsible for the association’s finances, which can be a massive responsibility. From planning the annual budget to recording transactions and preparing reports, the financial aspect of community management is a full-time job in and of itself. It requires accuracy, timeliness, and precise organization. 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, so it’s always best to make sure that your board members have thorough training in the financial aspects of community association management.

2. Improved communication

Good communication is imperative for every community association. Without it, the community cannot function effectively. In order to ensure that communication flows well amongst your board members and between the board and residents, set out clear methods of communication and plans for notice dissemination, and make sure your board is familiar with these protocols. A breakdown in communication could result in fighting between board members, upset homeowners, unknowingly broken rules, and general frustration all around. 

3. Effective conflict resolution

It’s inevitable that conflicts will arise within a community association. Each neighborhood is made up of diverse residents with differing viewpoints and opinions on a range of topics, and conflicts between homeowners or between a homeowner and the HOA will need to be resolved at one point or another. If conflicts are left unresolved and escalate, they can lead to personal attacks, physical violence, or lawsuits. In order to peacefully resolve disputes, board members should receive adequate training in best practices for conflict resolution.

4. Liability avoidance

By definition, community associations deal with a polarizing mix of local laws and resident livelihoods. This combination can, unfortunately, open associations up to legal liability somewhat frequently if the HOA isn’t careful. Board members need to be extremely familiar with federal, state, and local laws, so they can write and implement their own rules and guidelines in accordance with those regulations. They also need to unfailingly act in the best interest of the community, or the HOA becomes vulnerable to a lawsuit claiming breach of fiduciary duty. In order to avoid any legal ramifications, board members should be thoroughly trained in all legal matters surrounding community associations and their daily operations. Your community association management firm can also provide legal guidance to board members and notify the HOA as local laws evolve.

It’s understandable why board training falls to the wayside and isn’t a priority for many communities; as volunteers, your residents have a lot going on in their day-to-day lives and may not have enough time for the many responsibilities of a board member, including attending training sessions. Luckily, community association management firms such as The Management Trust can offer board education courses while simultaneously taking on many of the responsibilities normally left to your board members so that they have more time to focus on training and look at the community’s big picture. Whether you need assistance with daily operations, financial planning, legal guidance, or board training, The Management Trust is here for you and whatever your community association needs to thrive. For more information about our full range of HOA management services, call The Management Trust at (253) 472-0825 or fill out our online contact form today.

Most of us have a preliminary understanding of how an HOA board works. We know that there is the board itself, someone in charge, and the rules they’re expected to enforce for the community association. For most members of HOAs in Aurora, CO, this basic knowledge may suffice and they may not require further information about their HOA boards. However, when a dispute arises with members of your HOA, it is important to clearly and concisely know the roles of every aspect of your HOA board to best serve your community members. If you’re considering forming a board for your Aurora, Colorado, homeowners association, here is a primer on what an HOA board is and what its responsibilities should be. 

Defining an HOA Board

In most cases, HOA boards take form by the creation of governing documents, usually taking place before land development begins. Once the governing documents have been established, the board is then elected according to the agreed-upon bylines of the documents. Governing documents can also determine the roles of each board member, as well as further elaborate on the rules and regulations of their community. Knowing how HOA boards are created is important for community members, and it is equally important for homeowners to elect members of their community to represent them in the governance of their HOA. 

Rule Enforcement

The HOA board is responsible for enforcing rules that are designed to protect property values and typically require that homeowners maintain their homes to meet certain aesthetic standards. In addition, having an HOA board is important because of the need to maintain common areas including trails, pools, or playgrounds. In Aurora, CO, HOA boards may take additional action if an HOA member is delinquent in completing their membership fees. In Aurora, CO, collection action includes obtaining a lien against your home in accordance with Colorado law. HOA boards in Aurora and throughout the state of Colorado can foreclose on your home if the amount on the property lien is equal to or greater than six months of assessments and the board agrees to foreclose.

Financial Duties

In relation to collecting fees, the HOA board is also responsible for maintaining a budget for the entire community. Board members should typically meet annually to determine their budget for the following year, and they do so by accurately collecting enough fees from their fellow community members. The annual HOA budget should also include a reserve fund to protect the community in the face of any emergencies. Once a budget has been established, each board member should be provided with a maintenance assessment. 

While this list of responsibilities is thorough, it is by no means a comprehensive list meant to establish your HOA board. If you are considering forming an HOA board in Aurora, CO, save yourself the trouble of finding out the details and reach out to the community association management experts at The Management Trust. For more than 30 years, homeowners associations throughout the U.S. have entrusted The Management Trust with all their community management services. We pride ourselves on being one of the few employee-owned HOA management companies in the country, and we continue our dedication to doing things right by providing excellent service to each HOA that we work within Aurora, Colorado, and throughout the country. If you’re ready to move forward with establishing your HOA board, contact us today and let us make a difference in your Homeowners Association.