5 Keys to Successful Homeowners Association Management

Successful Homeowners Association management is vital to bring the HOA and community’s shared goals – of increased property values and communal spirit – to fruition.

But looks can be deceiving, with seemingly well-managed communities sinking under poor leadership and governance.

Whether you’re considering the prospect of hiring your first HOA management company or evaluating your own HOA Board of Directors, understanding these five points will help you make the best decision for your community.

1. Strong Leadership

Always strive for a well-balanced Board of educated and active members. This speaks to having a clear, well-defined understanding of what the Board’s objective is.

In other words, the Board needs to have collective and individual knowledge on how to successfully manage the HOA, including its rules, regulations, and those on the federal and state level.

Knowing what aligns best with the community’s objective and how best to effectively pursue it also requires the willingness to actively seek and implement necessary solutions.

When the Board is well-balanced, you’re also better able to marry the experience of older members and the forward-thinking ideas of younger ones without one faction overruling the other.

Furthermore, having a professional HOA manager means introducing objectivity and reducing the risk of emotional and reactive (instead of informed and active) leadership.

To be a good fit, this individual also needs strong leadership skills, including constructively dealing with any opinionated members.

2. Clear, Thorough Documentation

When it comes to HOA documentation, many make the mistake of compromising between being clear and thorough. Balancing the two can be very tricky, but doing so is vital to the success of your HOA management.

HOA documentation includes a wide range of functions, which easily lends itself to being delegated to several members according to their strengths.

Examples include:

  • Financial – a well-planned budget (monthly, quarterly, and yearly), long-term financial plan, reserve funding, and documenting the income and expenses

  • Vendors – recording communication, contracts, leases, and community feedback concerning requested/existing vendors

  • Contractors – records of requested repairs, renovations, or other projects, including quotes, communication with contractors, inspection notes, contracts, and responsibilities as delegated during the project period

  • Board of Directors – a clearly defined objective, meeting agendas and minutes, community newsletters, records of communications with members of the community (past and present)

This includes your chosen HOA management company assigning a dedicated HOA manager to your community with a low turnover rate. This way, documenting all communications is properly centralized, while long-term trust is also allowed to develop.