Why Self managed associations are partnering with Management Companies
Managing a community association is no easy task. It can be especially daunting task when your association is a self managed community. Law changes, insurance concerns, assessment collections, deed restriction enforcement can be extremely difficult to maintain on a consistent basis without the proper infrastructure, and serious time commitment.
We have seen a recent increasing trend in self managed associations reaching out to us for help with their community association. We believe several recent factors have led to this recent development:
Overworked and Underpaid
All community association board members are either elected by their community or volunteered for their respective positions. They of course realize that there is a time commitment involved, but many underestimate exactly how big of a commitment it can be. Most people are already close to their max with their families, careers, and other real world responsibilities. Adding community manager to their already full plate is a lot to ask. When we speak to associations, we always tell them that their association board member positions are a volunteer position, when it turns into a another JOB, then it is time to make some kind of change. Many times that means partnering up with our firm to help take on the huge workload off their shoulders.
HOA and Condo law compliance
Here in Texas, we just went through our largest HOA and Condo association law overhaul in the state’s history. Financial and documentation transparency being was a main focus of those community association law changes. Without taking the proper legal steps and adjustments to current community association policies, many associations are not compliant with the law. A large number of associations that are not fully compliant with the current law changes, are currently under self management. To expect a group of volunteer board members to be able to interpret the massive law changes and then implement the right changes to make their associations 100% compliant, is just simply unreasonable. Having a HOA manager on your side to help guide you through all the legislative changes in your state, can be a real life saver. Removing any potential legal liabilities should be a main focus any good association manager,
Many residents that live in self managed association at first are very resistant to their community hiring a management company. Most assume since that their current management duties are being taking of for free, that they are against paying anyone else to handle those tasks. What most non board members don’t see is the immediate financial advantages you can have with a management company working for you. We have time and time again immediately lowered our communities costs relating to utilities, assessment collection, service contracts, insurance, and even maintenance. These small changes and modifications can add up real quickly. We have even had a few cases where the communities overall operational costs have decreased more than the costs or our monthly services. These situations are very realistic with the right knowledge, organization, and attention to detail that a successful association management company can give you.
Deed Restriction administration
Deed restriction enforcement in a self managed HOA can be a real stressful chore. No one wants to be “tattletale” in their own community. Most people have a good knowledge of the deed restrictions for the most part in their community. However, there is something about being told by a neighbor how they need to maintain their own property that can really rub people the wrong way. Having a fair and unbiased third party handling your deed restriction enforcement and violation administration can be a stress relief for a board of directors. Our goal is help all self managed associations avoid all of those really awkward conversations and accusations at the community mailbox and neighborhood block parties. Having a HOA management company on your side to help educate the residents on the “laws of the land” can help improve overall community communication and in turn help improve property values.
We love helping communities reach a new level of success. To get their, you need a the right knowledge, tools, and time commitment. This is hard to come by with many busy association board member volunteers. Consider leveraging your efforts with an experienced team that has been in the business of helping communities thrive. It’s a choice many communities wish they had done sooner.