How To Handle Raising Homeowner Assessments in Your HOA

The last thing that any HOA board wants to do is raise fees for homeowners. However, it can sometimes be unavoidable if your association’s financial state requires it. Regardless of necessity, however, it’s extremely rare that homeowners will embrace the increased fees with open arms. 

Concern, confusion, and anger are all common reactions that you’ll encounter when notifying residents of increased assessments. However, there are steps that you can take in order to minimize the negative reaction from your homeowners.

Give Homeowners Ample Notice

One of the most important steps to take when raising assessments is to provide homeowners with ample notice. This notice should be given at least 30 days in advance to allow residents to prepare for the increase. 

With proper notice, homeowners will have time to review their budgets and make any necessary adjustments to accommodate the increase. It also gives them the opportunity to reach out to the HOA with any questions or concerns they may have.

Be Transparent

Transparency is key when it comes to raising homeowner assessments. Homeowners are more likely to accept an increase if they understand why it’s necessary. In the notice and announcement of the increase, be sure to clearly specify the reasons behind it. This could include needed repairs to common areas, increases in operational costs, or even emergency situations that require immediate action. 

You can also increase transparency by providing detailed financial reports and budgets to homeowners so they can see exactly where their assessment money is going. This can instill trust and confidence in the HOA board, as well as reassure homeowners that their money is being used responsibly. When provided full transparency, homeowners can see that the increase is not arbitrary, but rather a carefully thought-out decision to benefit the community as a whole.

Remain Positive & Professional

No matter how transparent you are and no matter how much notice you give, it’s inevitable that some homeowners will feel negatively about the change. Raising homeowner assessments can be a sensitive and emotional topic for some residents, especially if they’re already struggling with the cost of living. However, it’s important for the HOA board to always remain positive and professional in their communication with homeowners

Avoid using negative language or making accusations. Instead, focus on the benefits of the increase and how it will improve the community. Remind homeowners that the HOA board is working in the best interest of the community as a whole and that their input is always valued. This can help to ease tensions and create a more positive atmosphere surrounding the increase. 

At The Management Trust, we can assist HOA boards with handling difficult tasks such as raising homeowner assessments. While executive decisions always come from the board, we can execute those plans and implement any changes that need to be made on behalf of the community association. More than 1,500 communities throughout the country trust The Management Trust for effective and pleasant neighborhood community management, including financial management and dues collection. To find out more about our full range of community management services, contact us online today.