Have you heard of HOAs and wondered what these were and if you should purchase a home that has one? Homeowners associations, HOAs, have become increasingly popular since they first started about 60 years ago. In the 1960s, there were an estimated 500 HOAs in existence. Since then, there have been more than 300K HOAs across the United States. But why? What makes this so popular and alluring to homeowners? First, it’s important to know what an HOA is and what it does. To take it a step further, there is an option for HOA management Aurora that gives board members an easier way of handling all the tasks the HOA covers.
How Stuff Works mentions, “First and foremost, a homeowners association is an organization of property owners that administers the rules and upholds the covenants of a subdivision, development or condominium complex.” So imagine, if you will, a group of homeowners get together and decide they want to have bylaws to keep a property in tip-top condition. There are many reasons to maintain properties, including raising the values of the homes. When property values skyrocket, it surely benefits the homeowners of the subdivision. Unfortunately, when there are quite a few properties, it can be difficult to manage all the duties of the homeowners association. This is where property owners might elect a firm in their place. Let’s take a look at why your current HOA setup might benefit from a management group.
Maintain Bylaws/ Government Compliance
Laws are always changing. It can be difficult keeping up with these laws, especially if your entire board is a full-time employee or business owner. For that reason, you might want to consider a property management firm instead. They can make sure that your HOA is following all the rules and laws set forth by the state, local, and federal laws. It is essential that everything the board does is legal. If it isn’t, the board could face hefty fines or taxes.
Financially Manage
Have you found it difficult to keep great accounting books? Is your current HOA financial set up being handled by the most money-savvy person on the block? This might seem like it works well for now, but it usually isn’t the best way to handle something as important as your HOA dues and financial reporting. When you hire a professional management company, they’ll take over the responsibility of collecting dues, recording them, and itemizing where money is spent. This is crucial for a number of reasons, including keeping property owners aware of where their dues are being spent. With professional hoa financial management Aurora the money concerns can be a thing of the past.
In addition to budgeting, your property manager will also be tasked with managing risks. Looking ahead, the manager will identify any risks that could negatively impact the finances of the HOA and prevent that from happening. This could also include planning for future needs like renovations. Saving money for specific tasks that need to be completed is one essential function of a property manager that is often overlooked.
Faster Response Time
When there is an emergency that needs to be dealt with swiftly, are property owners going to be as quick to respond as the property management groups? Probably not. In fact, this is the experience most people have when they aren’t led by a professional management group. Firms are available 24/7 to answer questions, help with repairs, and handle regular maintenance tasks. This type of peace of mind is one of the top-ranking factors that many subdivisions and condominiums take into consideration when choosing a management group.
Mitigate Disputes
Not everyone gets along. There are several reasons you could be fighting with your neighbor. They might like to wait just a little longer to cut their grass or forget to bring their trash cans in for days at a time. There are so many things a homeowner could have a complaint about it isn’t even funny. So what can they do? The options are to fight with the neighbor, be passive-aggressive, or let someone else deal with the problem. Having a 3rd party handle disputes is one of the best ways to resolve conflict and keep a neighborhood happy. How can the property manager resolve these issues? By being fair.
The property management group has no skin in the game when it comes to most arguments, which means they can be equally fair in making decisions to resolve conflict. For instance, your neighbor chooses a roof color that doesn’t match the color scheme of the entire neighborhood, or they go with a material that isn’t outlined in the bylaws. A grieving party can bring the dispute up to the managers, and they will take it from there.
Access To Quality Contractors
When something goes wrong with a property, who do you call? It can feel extremely overwhelming for any property owner to choose a contractor for repairs. What happens if you choose the wrong person to pave your roads? What if they take the money and run? The good news when working with a property manager is that they network. They likely have a person on call for just about anything the residential community might need. Their team of preferred contractors is licensed and insured, and in most situations, they’ve already done business with them. A vetted contractor is certainly a better choice than one you find simply browsing on Google.
Should You Consider An HOA Management Team?
There are many questions to ask when making an important decision like this. You might consider if budgeting and keeping the books is taking a toll on your board. Or you might be tired of fighting with Joey down the block about his music being played at all hours of the day. Keep in mind the five advantages of hiring a company to do the hard work for you. Most property owners don’t have the time and would like to save money while enjoying their homes versus managing the entire neighborhood. If you desire a well-maintained neighborhood without many of the hassles, then absolutely give an HOA property management firm a look.
