As an HOA, you’re faced with a lot of responsibility and large decisions to make. Your board has to create a budget, hold meetings, find vendors, and keep up with the best ways to help the community and its residents thrive. Because we know there can be a lot on your plate, below are some common mistakes your HOA should avoid.
Planning for the best
We’re not saying that you should expect doom and gloom, but HOAs that plan for the best and don’t think about worst-case scenarios can lead to severe deficits. Look at 2020 as an example. If your HOA planned for only the best-case scenarios, you might have felt particularly stressed by the unexpected sanitary costs, maintenance costs, and missed due payments that the year brought.
Not being transparent with residents
We live in a world where information is always at the tip of our fingers, so when a decision is made without your residents being involved or informed, it can ruffle some feathers. When unexpected issues arise, or it’s believed that dues should be raised, it’s imperative to have a conversation with residents.
Allowing costs to roll over year after year
By this, we mean that every year your HOA board needs to review costs, partnerships, and services used. If you’re paying for a vendor monthly, but only using their services three months out of the year, you should talk about other solutions. Just as inflation is likely to cause you to increase your dues, it’s likely to do the same to the vendors and partners you work with, so make sure it’s still within your budget and a business your community wants to partner with.
Losing important documents and not keeping good records
Accurate recordkeeping and a paper trail of where the money residents have paid has gone allows residents to feel like they’re making a smart investment and keeps your community happy. It can be easy to misplace paperwork or forget to save an important financial document, so your HOA board needs to be diligent about keeping good records and having them in a safe location.
These common mistakes your HOA should avoid can have huge consequences on the longevity and happiness of your community and its residents. If your HOA board needs any help managing your association or any questions about how to help residents in your community, contact Prism Realty Management. Learn about who we are, the services we offer, and our process, then give us a call at 512-676-5842.