There are over 350,000 HOAs or homeowners associations in the US. They represent over 53% of owner-occupied homes and 26% of the US population.
This growth has also increased the need for community volunteers to manage them. 2.5 million US homeowners served on an HOA board as of 2021, and more are sure to come.
What do they do for the communities they serve? Read on to learn the duties of the HOA board.
Setting and Enforcing Rules
HOA communities run well when everyone follows certain rules. It's the board's job to create and enforce them.
Penalties may include fines or suspended privileges. Repeated violations could lead to the board placing an HOA lien on a property. This means that they can foreclose and sell it.
Maintaining Common Areas
The responsibility for maintaining each property in the community falls on the residents. The same isn't true for shared common areas such as:
The board keeps these areas clean and functional. They can also discuss options for updating and renovating them during board meetings.
Planning and Hosting Events
Have you ever been to a block party, a fundraiser, or another community event? They're an effective way to bring a community together.
The board is responsible for planning and hosting them at an HOA. They organize them, secure the necessary resources, and advertise them so that community members attend.
Managing Community Finances
The HOA Board needs to watch over the finances of the entire community. This means:
- Setting budgets
- Collecting assessments
- Distributing funds
- Keeping records
These duties primarily fall on the treasurer, but the rest of the board also has a say.
Community members can go to the board members whenever they have a dispute. These often start over a difference of opinion about the community rules.
The board serves as the mediator. They'll try to solve the disputes and find a fair solution for everyone.
How Property Management Helps
Homeowners in an HOA manage their own properties. The board doesn't have to handle everything, but they can still become overwhelmed. Large communities with too many buildings or large common areas can be too difficult for a small board to manage. The same is true if there aren't enough skilled volunteers willing to sit on the board.
Professional HOA management services fill in the gaps. They provide the experience to perform all the duties of the board and more.
Their efficiency saves time and money that can go put back into the community. They'll also make sure everyone is compliant with the HOA rules. It's better for everyone when they enforce them instead of a neighbor.
Most property management companies have lawyers on staff to deal with community disputes. This also ensures compliance with local, state, and federal laws.
Get the Management Your Investment Needs Today
An HOA board helps manage a homeowner's association. An HOA property manager helps them do it more efficiently and affordably.
PMI Garden State is a full-service real estate asset management company with over 20 years of experience. Contact us for help managing your community property today.