Managing an HOA as It Ages: How Management Should Adapt
HOA management should evolve with the community. As the association ages, board members need to pay attention to major maintenance and upgrades. They should set budgets and plan accordingly. If your association is more than ten years old, you should start making decisions that can benefit your community today while you set the HOA up for success in the future. Reputable phoenix hoa management companies can help you make this happen by determining what must be improved and what steps to take to improve them.
What Your HOA May Have Overlooked
As your HOA ages, regular maintenance won’t be enough. However, HOA assessments can underestimate the current replacement cost. Rather than patching street holes, associations may need to repave entirely. Rather than just trimming trees, your HOA may need to replace them or give the landscaping an overhaul. The board must take these costs into account and expect the scope of dues necessary for meeting future financial needs.
Importance of Having a Clear Vision
The HOA board must have a long-term vision for your community. They must determine what they can do to drive resale and increase the values of properties. They should have a concise strategic plan for the community that includes the kinds of actions they will take to make sure property values are protected. Also, they must do something to promote your community as an ideal place to live. An HOA company can offer examples of strategic plans for reference.
Importance of Communication
The average homeowner does not pay attention to financial considerations such as strategic plans. Thus, the board must communicate such objectives to members. Once a homeowner understands the substantial value they get in exchange for their dues, they may support increases.
An established HOA has an advantage over a new one. It has overcome basic challenges and is now focused on operational and administrative matters that align with heir community’s lifestyle and pace. To maintain this position in the future, the board must pay attention to the unique vision of the association and the needed financial support to turn this vision into reality.
Complete or Review Your Reserve Study
Although HOAs in Arizona are not required to prepare a reserve study, your association can benefit from having one. This budget planning tool reviews your association’s main capital systems. It assesses how long an item can still be used and the cost of replacing it when it wears out. Also, it calculates the amount of money your association must set aside yearly to ensure there is enough to be used for replacing items in common areas. Your HOA must not only collect sufficient reserves for funding the vision of the community but also ensure it has the working capital necessary to respond to code requirements and legislative changes when they arise.
