When people in a neighborhood want to protect the investment they have made in their homes and property, they usually come together to form an HOA. This organization enables residents to protect the quality of their neighborhood by creating and enforcing community standards, as well as ensuring common areas are properly maintained. One of the ways the association can accomplish these tasks is by forming an association leadership board, made up of residents who make the final decisions related to the community. However, most HOA boards lack the experience or resources to provide everything a community needs. Boards with fewer resources often choose to hire a management company to help run the community. These are some of the benefits of outsourcing services to an association management company.
Communities attract better residents
As anyone who has been shopping for a home knows, people have to pay more if they want to live in a community that is well maintained. This means that properly maintained communities are more popular and attract more interested residents. An association management company can use its expertise to screen applications and conduct resident screenings. These organizations will be able to recognize undesirable residents early in the process so that time is only spent on people who will care about maintaining the neighborhood.
Efficiency of fee collection
HOA board members hate collecting dues because it’s time consuming and there’s a chance that relationships with neighbors could be affected in the process. The problem for HOA boards is that dues are the only source of income for the board, and a board that does not collect dues will not be able to provide basic services. Fortunately, all homeowners management companies are experts in increasing the collection rate due. These organizations can collect debts by acting as a barrier between board members and residents, meaning residents cannot use personal relationships to avoid paying debts. Also, a good property management company will be able to go after bad debts by implementing payment plans. When the association management company charges more, the board has more resources to use to improve the community.
Businesses Provide Legal Protection
A community has so many resources to work with, and those resources can be crippled if the community finds itself in legal trouble. Legal problems can arise from improper appraisals, evictions, property inspections, and injuries arising from the condition or safety of the property. A management company will be well-versed in the national, state, and local laws that govern the management of a community, and will provide guidance to the HOA so that it is not held accountable. In cases where the HOA board finds itself in legal trouble, the company will usually be able to provide the board with legal representation at no additional cost.
Outsourcing HOA services means better residents, increased bills owed, and legal protection for the association. These are just a few of the many benefits a home management company offers.