Over 75 million U.S. residents live in a homeowners association, commonly known as an HOA. This number is expected to grow as recent data from the National Association of Realtors expect approximately 3,000 more HOA developments in the years ahead.
Are you a real estate investor who wants to scale a portfolio with smart residential assets?
The HOA management structure ensures property values through board leadership and enforcement of neighborhood integrity.
A high-value homeowners association needs a dedicated HOA manager at the helm. Finding the right management team is one of the first steps for any HOA investor.
Learn more about the qualities of effective HOA management to find the right solution for your development.
Improving Community Management
HOA manager responsibilities include both financial and community management duties.
Tasks include:
- Financial reporting
- HOA board management
- Legal and contracts
- Conflict resolution
- Maintenance
- Violation system management
- New membership processing
On the point of HOA board management, an HOA manager, also known as an association manager, is responsible for spearheading elections for the neighborhood's HOA board. This board is elected by HOA residents; it includes a president, vice president, and so forth.
An HOA manager identifies potential neighborhood leadership and encourages leadership in the community.
Association managers will communicate upcoming elections and find the right HOA meeting space to hold these elections and candidate introductions.
Once formed, the association manager will educate the board on how to conduct HOA meetings, including the creation of agendas and meeting topics. HOA board meetings should also be a place where residents can have their voices heard.
One of the most discussed topics at meetings is HOA fees and dues. Board members must be equipped to answer these questions. Therefore, transparency within the community is essential for navigating such issues.
HOA Manager Duties for Financing
The last point speaks to the importance of sound financial management. HOA communities are in demand for their community resources like parks, recreation centers, pools, and more. An experienced association manager works with the board to ensure funds are invested properly into the right projects.
Residents and leaders may also spearhead the following community-building events:
- Holiday and seasonal carnivals
- Community potlucks
- Neighborhood "public" artworks
- Tree planting
- Outdoor movie nights
- Block parties with vendors
Project managers must present a budget to the board to ensure resources are properly allocated for the project.
Property Management Strategies for Maintenance
HOA communities stand out for their impeccable maintenance standards. These standards are enforced through a violation system that penalizes homeowners for not following guidelines for visual integrity.
Some HOA neighborhoods have strict guidelines for front yard landscaping; some plants may be prohibited. The same may apply to exterior paint jobs.
Work With the Right Association Management Team
As you embark on your HOA investing journey, ensure you have an effective HOA manager lined up for your development. Talk to management candidates about the above strategies, from maintenance systems to community-building ideas.
PMI East Bay is a leading association management team in the Contra Costa area. Our leadership team brings over 27 years of experience in the industry, including experience as a Silicon Valley tech CEO. Technology plays a key role in our data-driven property management philosophy.
Book a consultation to learn more about the potential of HOA assets for your portfolio.
