The U.S. is home to more than 370,000 homeowners associations. That's 370,000 managed neighborhoods designed for community growth, safety, leadership, and visual integrity.
Behind every HOA is an association management company that implements and maintains a neighborhood structure. The goal of this structure is to identify and empower neighborhood leaders to become community builders.
The highest-performing HOAs are formed during the development stage. Hiring an association management company from the start can inform the most effective HOA design.
Learn more about the necessity of an association property manager.
Leadership Strategies For HOA Boards
Once a new HOA development is built and filled, one of the first orders of business is to assemble an HOA board. Real HOA homeowners sit on this board. An effective management protocol will recruit the right members to this board.
Once a board is established, HOA community members may start electing their board members. In the beginning, an association manager will communicate the board formation process to the community. Homeowners with natural leadership skills are encouraged to apply.
Boards are structured with a president at the helm, followed by a vice president, treasurer, secretary, and so forth. It's not a hard and fast rule, but having a recognizable structure works.
An association manager will train the new board on meeting management.
Topics of discussion may include:
- HOA visual standards
- Behavioral standards
- Upcoming development projects
- New member introductions
- Community-building events
- Reserve budgeting
Association managers work collaboratively with HOA leaders to ensure safe, well-maintained communities. Managers don't lose sight of their responsibilities and are in constant communication with HOA boards.
Financial Management
One of the most crucial community association roles is overseeing the financial operations of the HOA.
This includes:
Collecting dues
Updating the board on financial reports
Vendor invoices (property upgrades, landscaping, etc.)
Association managers work with HOA boards to help manage reserve funds. These funds are allocated for a range of projects, including community upgrades and neighborhood events.
An example of a community upgrade may be a new playground, park, or recreation center. Events run the gamut, including block parties, community carnivals, outdoor movie nights, and more community-building techniques.
Any homeowner can spearhead a community event, but they will need approval from the board (and association manager) first. This process includes submitting a budget proposal complete with an itemized list of supplies.
Communicating Integrity Standards
Neighborhood integrity guidelines are extremely important for the HOA structure. This structure has a violation system that penalizes homeowners for violating such guidelines.
For example, to maintain clean streets and curbs, homeowners are required to keep their trash receptacles tidy. All receptacles must be the same, as well.
Untidy yards may also warrant penalization. Homeowners are required to maintain their front yards and may only plant HOA-approved plants and trees.
Learn More About the Association Property Manager Role
Remember the above property management tips when considering an HOA for your portfolio. Should you decide to take this route, look into hiring an association property manager who will maintain the look and feel of an in-demand HOA community.
PMI 23 East is a leader in association management in the Jefferson area. We're part of a nationwide network of HOA association management companies with over 20 years in the homeowners association field.
Schedule an appointment to learn more about the promise of an HOA.
