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.