As HOAs continue to increase in size, we must prepare our communities for successful growth. As a board of directors, you’re obligated to protect and preserve the value of your community. By doing this, we must consider what factors and steps are necessary to build a strong community.
Financial management is one of the most critical steps in building a better HOA. Financial assessments are a large part of what makes up the financial position of an HOA. By evaluating your HOA’s expenditure, the HOA can identify opportunities that could potentially lead to decreasing costs and expenses.
Suppliers and vendors - Review your HOAs list of suppliers and vendors for areas of opportunity that could help reduce costs and fees. In addition, your HOA should evaluate service contracts, and yearly renewals that play a large part in the HOAs budget — contracts such as this are a great way to approach vendors about customer loyalty programs or special discounts.
HOA yearly budget - The purpose of an HOAs budget is to financially maintain the community's value. Many line items included in an HOA budget are there to help operate the HOA, such as maintenance, the reserve fund, landscaping, common areas, vendors, property taxes, events, legal fees, and utilities. In addition, many communities are now including HOA software as a new line item in their yearly budget. As more HOAs enter into a digital way of living, boards are now noticing the need to enhance their current software and digital forms of communication.
Financial records - Improving your HOA’s financial records is another way to help build a stronger community. Financial records can contribute toward helping the board in making educated decisions about future spending and expenses. They also help increase financial transparency and areas of opportunity that could potentially help lower costs. Thanks to the many advancements in HOA software, HOAs can now utilize financial software and applications specific to their needs. For example, TownSq offers communities the opportunity to process online payments, request and participate in open forums, organize critical financial records, and manage contracts through a secure online portal.
As the world of HOA software continually rises, we expect to see a significant shift of enhanced advancements in 2023. HOA software has shown to increase communication and streamline many of the day-to-day responsibilities necessary to run a community.
Software updates - One of the best ways to improve your community is by ensuring your HOAs software is up-to-date. Boards and managers are now finding it necessary to evaluate their HOAs software and lack thereof. A few examples may include:
One of the most talked about HOA topics going into 2023 is the desire to increase community engagement. Now that more members are ready to step outside their doors, HOAs should consider this a new opportunity to create innovative ways for their members to get involved.
Community involvement - Consider ways for newer members to get more involved by conducting new member meetings for those that may be more curious about getting involved. Other examples of community involvement include special committee groups, planning social mixers, or participating in community service events.
Welcome committee - A welcome committee works as a great way to greet and invite potential members to the community. It also allows the community to present its HOA in a more positive spotlight.
Increasing communication is a critical step in building a better HOA. As a board member, it’s important to understand why communication helps members stay connected.
Your HOAs guidelines and governing documents are one of the most important parts of maintaining an HOA. They protect and provide structure for all members of the community.
Security is known to be one of the most important factors in why members decide to live in an HOA. People want to feel safe and secure in their homes, especially when a family is involved.