- #Temple managing property and liability risk 2 how to
- #Temple managing property and liability risk 2 professional
#4 leads into #5…who’s the advocate for the HOA members (residents)?
#Temple managing property and liability risk 2 professional
A professional HOA management company can offer protection against this. In some cases, this can even result in ethical breaches. Once in a while, there’s often the “my way or the high way” mentality from a heavy-handed Board member that wants to strong arm their way into power and influence.
This leaves no room for transparency on either side. There’s no accountability involved which makes it difficult for community members to stand up the HOA Board. When your homeowners association is self-managed, it can be hard to maintain accountability for the HOA Board members. Risk #4 – No Accountability or Transparency
A professional community manager makes the success of your HOA operations their full-time pursuit. Between coordinating meetings, preparing HOA board packets, collecting dues and fees, dealing member requests and complaints, negotiating with vendors, maintaining finances…phew! Do you have the time or enough volunteers? Keep in mind – although volunteers have good intentions and can do a lot of great work when placed in the best suited positions ( read 5 Personality Types for the HOA Board), they can not match the efficiency and resources of a community manager. There’s a lot of work that goes into managing an HOA community. A good homeowners association management company will make sure your HOA does everything it needs to put in place the right kinds of insurance to defray any potential legal action. If your HOA is self-managed, you may not know what coverages you need or who is a reputable insurance agent that can help you. Do you know how much Director and Officers Liability coverage is needed? Are you familiar with Non-Monetary Claims (2nd most common lawsuit against HOA’s)? It’s also possible that your association has these insurance coverages, but may be under-insured. If your HOA doesn’t have proper insurance coverage, it leaves itself open to potential lawsuits.
#Temple managing property and liability risk 2 how to
Self-managed HOA’s can very easily break the law, completely on accident, simply because no one on the HOA Board knows how to interpret what the laws actually say – or know they even exist! For example, conducting a reserve study and annual reserve update, practicing accurate and ethical accounting methods, submitting annual disclosures, and staying up to date with changes made to state HOA laws is a legal requirement of the HOA. Many self-managed HOAs are breaking the law – or at least not staying compliant – and don’t even know it. Six risks the HOA can avoid when hiring a homeowners association management company: Some of these risks are minor, but some can cause tremendous financial and legal problems. Knowing those risks is important for making a wise decision about your HOA management needs. Unfortunately, there are several significant risks HOA boards take on when they choose to be self-managed. After all, can’t their community be self-managed? Is it required to hire an HOA management company? The answer isn’t that simple and there are factors that need to be considered before going down the road of self-managing the HOA. Many HOA boards think they have it all together and can easily manage the HOA on their own. On the surface, managing the homeowners association may seem simple and straightforward.
Octoby Courtney Schwartzel / Beginners Guide for Rookie Board Members, HOA Accounting, HOA Directory and Officer Liability
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