Over 75 million U.S. residents call a homeowners association home. These stats represent about 30% of all housing assets, according to data from the Foundation for Community Association Research. The HOA market is expected to grow by 3,000 more developments by 2024.
If you're a real estate investor, the HOA market is an excellent way to diversify your portfolio. These developments are managed by association managers who enforce standards that increase property values and quality of life.
Learn more about the role of association management in the HOA model.
Form an HOA Board
Every HOA community should work alongside an association management company, even before the neighborhood opens up. The first order of business is to help form an HOA board; real homeowners in the community sit on these boards.
Homeowners who are natural leaders in the general area or their industry are great fits. An association manager also taps into leadership potential. The community elects board members; the association manager's job is to organize meetings where candidates introduce themselves to the community.
The association manager will create board descriptions for each role, highlighting HOA leadership techniques for each position. A management company will create the necessary governance documents per local HOA laws.
Rest assured, an association manager won't take their eye off the community. It's their job to help empower HOA homeowners to form proactive boards, but they also correspond regularly to ensure the community is functioning properly.
Financial Responsibilities of Association Managers
HOA boards oversee the community's reserve fund under the guidance of an association manager. Two of the most valuable HOA management skills are accounting and financial reporting. HOA communities are required to pay dues to live in the community; residents expect a quality community if they're paying dues.
The association management company works with an HOA board to build vendor relationships to ensure maintenance standards are upheld. Managers and boards must ensure invoices are paid and dues are spent properly; transparency with the community is a top priority.
Help Manage Community Wellbeing
A strong sense of community is something that makes an HOA unique. You can't achieve this objective without community-building projects.
You don't have to sit on an HOA board to pitch a community project. However, HOA homeowners are required to write a plan (with a budget) and submit it to the board. The board and association management will review and grant the funds necessary for the project.
A typical project would be:
- A community carnival
- Live music event
- A new community garden
- Upgraded playgrounds
- Dog parks
- A community pool
- Fitness parks
An HOA community is only as strong as its members. Skills like conflict resolution and active listening are essential for both boards and management teams. It's important to empower the community as a whole.
Manage a Top-Rated HOA
Don't just invest in an HOA. Get behind a homeowner's association that's designed for community growth. Work with experienced association managers with skills to empower these communities through leadership and innovation.
PMI Scioto Metro is a leader in association management in the Columbus area. Our team is part of an industry-recognized network of property managers. Our nationwide network brings over 20 years of experience to the table.
Book a consultation to learn more about the possibilities of association management for your HOA goals.
