Compliments to you for your new role as an HOA board member! Give yourself a pat on the
back for your new position.
Being an HOA board member comes with a lot of different responsibilities and requires you to wear a lot of different hats.
To help you get started on your new role, Atlantic and Pacific management has put together five useful tips.
1.) Understand Your Role and Governing Documents
You will need a clear sense of everyone’s roles inside and outside of the association. Understanding the roles and responsibilities of the board, association members, and the management company will help you assimilate how each contributes to the success of the association.
Reading your covenants, by-laws, and other governing documents will also help you learn how your association works. There is an abundance of legal and industry terms you will need to familiarize yourself with as well. Knowing the governing documents and legal terms will not only help you understand your role, but also help you when explaining things to your community.
2.) Understand Finances
Managing an HOA budget can be similar to managing the budget of a small business. It can be a lot to take in, and if you are not familiar with finances and budgeting, it can be hard to understand.
You should first review the financial statement with the HOA treasurer or the property manager. It is the responsibility of the HOA board to make sure that the budget, cash flow, and reserves are being managed effectively. Conducting a midyear budget review is always a good idea, and don’t be afraid to reach out to your HOA management company for assistance.
3.) Plan and Make Decisions Efficiently
Being an HOA board member is a big responsibility and can become time consuming. It also comes with a lot of decision-making power. Keep in mind this is something you are volunteering to do, and you most likely have a job and family to tend to as well. Plan out and organize the time that you are dedicating to the HOA board and make the most of it. In the time you are allotting yourself to the board you want to be productive, so prioritize needs such as community projects and vendor contracts. Don’t rush decisions either. It is ok to wait on making final decisions to ensure the best outcome.
4.) Communication is Key
Communication between the HOA board and the community is essential to keeping a happy and trusting relationship. Make sure the board is being transparent with the community and listening to feedback. The community should be made aware of what’s going on with the board, in the association, and how money is being spent. There will be times where the information being passed won’t be what everyone wants to hear, but that is a part of building a trusting and informed community.
5.) Ask Your Management Company for Education and Assistance
The community association management company provides instruction, service, support, enforces your association’s policies, and ensures appropriate communication is delivered to all homeowners and residents.
They also assist with financial management and budgeting, creating your reserve study, maintaining records, managing vendors and connecting you to additional expertise when you need it.
More Tips, Information, and Assistance
Atlantic and Pacific Management offers a full spectrum of HOA management and residential support services in San Diego County. A&P can review all your HOA needs including assistance with your budget. Reach out and see for yourself how A&P can help your HOA become more successful.