- January 5, 2019
- Posted by: Scott
- Category: Business plans, Community, Finance & accounting, HOA
When you purchase a home that involves a homeowner’s association, you have a legal and financial responsibility to the community. You have a voice. In fact, all homeowners share in accessing and in using all of the common areas, as well as in the inherent risks or liability associated with community ownership. A Board is elected to manage these issues, to represent the interests of all homeowners and to act as the calming voice of reason. No matter what their private opinion or personal biases are, association members expect:
- They act in a fair and consistent manner
- They refrain from voting on issues or making decisions that present a conflict of interest
- They maintain confidentiality and integrity
- They treat homeowners and other Board members with respect during discussions and throughout any dispute resolution
Expectations from a HOA management company
To offset the weight of liability and litigation, HOAs are contracting with third party management services. However, the Board does not let their HOA management company establish any rules or regulations. Or, should they allow them to independently run your community. Instead, third party services manage your community through your HOA Board. A management company’s role is to implement the guidelines set forth by the HOA. They simply act upon the rules according to your governing documents. Their services should ensure that the HOA is working in accordance with the state and national laws that protect homeowners.
How do HOA management companies help the Board?
The HOA management company should be the Board’s closest and most trusted business relationship. They are there to provide a service and operate within the intentions of the contract or agreement that was signed. They should always work to protect and to increase property values. They do this by implementing resources such as:
- Making sure the common areas are maintained in accordance to the Board’s direction
- Making sure the association’s liability exposure is low
- Ensuring that the account manager who is working with the Board is the right fit
- Helping to engage neighbors and build a sense of community
- Provide ongoing mentoring, resources and assistance for their HOA Board
Facilitating the right fit
HOA Boards and management companies have two completely different roles. By clarifying responsibilities and understanding roles, residents can address their concerns with the appropriate party and avoid confusion about how each party supports the other.
Looking for an HOA management company?
MGM Association Management has been serving Idaho for over two decades. They are an active member of the Community Association Institute, a national advocacy and legislative organization that provides guidance and oversight to over 34,000 members and 64 chapters across the United States. MGM is a strong advocate that HOAs belong to the people who live there. Their service style embraces the belief that engaged neighbors result in a more thriving community and higher home values.
For more information, contact MGM at (208) 846-9189 or go to https://www.gomgm.com