Do you Need a Property Insurance Policy for HOAs?

When becoming a member of HOA, residents give some amount of money per month or year to maintain their property values and share common areas with their neighbors. HOA board members or property managers become responsible for maintaining common areas (pools, athletic courts, tennis, park, clubhouses, etc.). They manage the budget, assess HOA dues, communicate with residents, acknowledge reports, and monitor the repairing, replacing, or landscaping services. HOA management enforces the rules that the overall community should follow to maintain a safe and clean neighborhood. The money that homeowners give to HOA regularly covers the services mentioned above. But wait, [...]

September 20th, 2021|Tags: , |

HOA Liability for Neighbor-to-Neighbor Disputes & Harassment

It is never pleasing to see how your neighbors have disputes with each other. This not only disturbs the comfort and peace of the community but also creates an overall tense atmosphere. The case is especially true for residents within the area of the homeowner's association (HOA). The organization maintains property rules for residents and homeowners, and by becoming an HOA member, homeowners follow those rules and pay HOA fees. The money that residents pay monthly helps them maintain their properties, shared spaces, and amenities. HOA maintenance management is responsible for maintaining the property values of neighborhoods. Residents cannot regulate [...]

Good HOA Board Member Qualities

To determine board qualifications, every HOA should review state legislation and its operating papers. However, there is currently no statute that specifies who might serve on an HOA board. Furthermore, many HOA rules do not demand board members to meet certain credentials. The qualities mentioned in the regulations are generally just suggested since it’s important to remember that board members are selected on a volunteer basis. Remember that the requirements of the HOA board of directors’ qualifications must be reasonable in order to be enforced. Adequate criteria can be found in the following examples: It is necessary to be a [...]

August 29th, 2021|Tags: , |

Step-By-Step Guide To The HOA Assessment Collection Process

Collecting dues for many homeowner associations can be a difficult task, especially when there are a large number of tenants. Fortunately, by following a straightforward procedure and examining all of your alternatives, you can make HOA assessment less of a hassle. Dues are the principal source of revenue for an HOA. An association would be unable to perform its responsibility to maintain the neighborhood if homeowner dues were not paid. Vendor services, repairs, and maintenance are not inexpensive. When an HOA fails to collect dues, it effectively paints itself into a corner. This soon leads to a decrease in resale [...]

Reserve Funds For Homeowners’ Associations

Just as it’s optimal for each individual to have their own savings account, a reserve fund acts as the same for homeowners associations. Emergencies are inevitable and they require quick responses which are often directly related to large sums of money. Your HOA’s preparedness for these emergencies with the help of HOA reserve funds maintains the homeowners’ satisfaction in the community. Here is everything you need to know about HOA reserves. HOA Reserve Funds vs. Operating Funds It’s important to distinguish two key accounts for HOAs — the operating funds and reserve funds. Operating Funds Daily expenditures and continuous upkeep [...]

July 29th, 2021|

HOA: A Start-To-Finish Guide For Homeowners

In comparison to the difficulty of maintenance, more and more homeowners are attracted to the security and convenience of belonging to a privately regulated community. Perhaps there isn't an HOA community in your neighborhood, or perhaps starting one has always been your desire. There are various advantages to owning a home, but it also comes with a set of obligations. You could be asking how to start an HOA community, whatever the case may be. Follow this step-by-step instruction on how to start your own homeowner’s association. 1. Analyze the Level of Interest in a Homeowners' Community Starting to establish [...]

July 21st, 2021|Tags: , |

HOA Protected from Fraud and Embezzlement

Communities are assigned a board of directors to oversee the everyday operations, needs, and concerns of the community. However, this does not protect your community from fraudulent activity. The more informed you are about common HOA scams and fraud types, the more effectively you can take preventative measures to protect your HOA.  Hoa Common is Fraud in HOAs? More than 40 million households belong to HOAs and HOA fraud costs the nation millions of dollars each year. HOA fraud is certainly not an uncommon occurrence since the community funds of these communities are often targeted. All in all, preventing HOA [...]

July 12th, 2021|

HOA Budget 9 Best Practices and Importance

One of the most important responsibilities of the homeowners association (HOA) board is to create a budget. A well-managed HOA budget can help you successfully maximize funds while also improving your residents' quality of life. It's challenging to plan an HOA budget, especially if you've never done it before. It's easy to lose track of the details when there are so many to consider. Here are HOA budget guidelines that can ensure a smooth preparation. How Important is an HOA Budget? What is the objective of a budget for HOAs? One of the most important best practices is to understand [...]

June 30th, 2021|

Does an HOA have to conduct a reserve study?

First off, let’s briefly uncover what a reserve study is and what it entails. It is merely a report that reflects the useful life each common area component has remaining. Also, the report assigns dollar amounts associated with each component. These amounts reflect the amount needed from each owner to replace each item when it’s life ends. This is a very common question and the short answer is YES! Per Civil Code §5550, an onsite reserve study must be conducted once every three years. The following link will lead you to the actual law and guidelines:                                                                Furthermore, this report shall [...]

April 29th, 2021|Tags: , |

Paying too much for your monthly HOA dues?

Paying too much for your monthly HOA dues? A lot of homeowners think that paying a high amount for their HOA dues is bad. However, it is better to pay a higher amount rather than have low reserve funds. Every HOA has a budget and a reserve study report. Those tools determine what the monthly HOA dues shall be. The board of directors shall exercise due diligence in setting the right amount. This amount shall be enough to cover monthly expenses, budgeted items as well as monthly reserve contribution. By doing so, the HOA will have a less likelihood [...]

April 22nd, 2021|Tags: , |
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