Many homeowners association boards assume that you need to have a large budget to work with an HOA management company, but that’s not always the case. Since not all associations need full-service management, there is the possibility for choosing a la carte services to fit within your current budget.
There are two main areas an HOA management company can improve in an association: collection of delinquent HOA fees and financial assistance.
Collecting Delinquent Fees
Hiring an HOA management company to assist you in collecting HOA fees can be a huge help to your association. It’s many well spent when your board is able to have someone else handle the monitoring of delinquent accounts as a neutral point of contact. Your management company can keep up with collection statuses and track delinquent accounts.
An HOA can get into some trouble if board members are not educated or experience in the management of financials for an association—which includes planning for the reserve fund, a very important part of HOA management. This can be fatal for your association without the proper experience.
By hiring an HOA manager, you’ll have someone to put a budget together or point out any areas in your current accounting. They can also assist with routine reviews of finances, which should be done every three months.
An HOA management company can also help with the reserve fund, which includes things that will need to eventually be replaced in your association and the associated costs. You’ll be able to plan for the amount of money to be set aside each year for upkeep. A manager is especially helpful for guiding your board through a full reserve study.
Hiring an HOA management company for specific services can be very beneficial to your association. You just want to keep in mind you must have a clearly defined contract in place so that both the board and the management company understand expectations and the context of the services. For more information on a la carte HOA management services, contact Cedar Management Group today.