HOA Management Blog

Homeowner associations (HOAs), like most organizations, have adopted information technology for everything from accounting and bookkeeping to email and other forms of communication to preparation of documents and presentations, etc.  However, HOA board members and their management staff must recognize and address the risks inherent in modern electronic technology, especially data breaches & server hacks that compromise information the HOA is responsible for keeping private.

Groups that are run by volunteers that handle money are particularly vulnerable to fraud, embezzlement, illegal activities, and scams. HOA boards are no exception. Access to funds is a temptation that some cannot resist.

Dishonest board members can exploit the fact that most volunteers don’t know the details on how to financially manage the HOA’s funds. They also know other board members are busy with family life, jobs and hobbies and may not have the time to scrutinize every transaction. Board members with a bit of financial savvy can “cook the books” to embezzle money or collude with outsiders to collect kickbacks.

Does providing security measures, such as cameras, security guards or security companies, make the association liable for security breaches that cause harm to others? Is there a price for your safety? Many homeowner’s associations hire private security patrol or contract with the city they live in.

Having security or patrols present in a community can help promote a sense of safety and a common feeling of unity. We all have families, loved ones and priceless possessions to protect. To what extent is the association responsible for providing HOA security?

The risks of not having enough HOA reserve funds for your community are as serious as the risks of not having enough emergency savings for your family.  Imagine needing to pay for college tuition increases or costly medical expenses without having enough money set aside to do so. Now imagine fellow homeowners having their family budgets crushed by emergency assessments because there aren't enough HOA reserve funds for repairs.  They’ll likely call you as a board member to complain!

Why not avoid these situations altogether? Having HOA reserve funds readily available “just in case” offers you and your fellow homeowners financial peace of mind.

If you’re a member of an HOA board, one of the reasons you chose to hire a property manager to help your community association is because you can’t keep up with all of the information you need to know. New and updated laws, reserve studies, annual meetings, trends, and resources are all things you need to have in your board member resource bucket, but can be very overwhelming. You trust your HOA manager to give you good and accurate information, but how do you know it really is legit?

Making positive touch points in your homeowners association is an important job of HOA board members. It helps foster relationships with residents in the community so that if an issue arises – either positive or negative – they feel comfortable and confident that they can bring it to the attention of the Board. There are many different ways to make these positive touch points. A newsletter, whether written or electronic, is a great way to communicate with each member of the Association. Below are 8 rules to follow when creating effective newsletters.