Most HOA boards are comprised of volunteers from within the association. Chances are, not all members have the same level of knowledge or expertise necessary to manage the community. Plus, they have different approaches to management as well as values.

As a board member or community manager, you’re aware that these aren’t excuses to allow issues to arise and escalate. You want your HOA to function well even on days that you aren’t present physically. Nobody wants to deal with problems but they’re a natural part of your role.

2022 HOA mistakes to avoid

The good news is that there are ways to face challenges before they arise, since prevention is always better than a cure. What this means is that you must be aware of your actions and how they affect the community. One of the smartest 2023 HOA tips is to refrain from committing these mistakes:

Improper email voting

Let’s say the board is taking a vote on administrative assistant hiring or some other matter. The only proper way to vote is to call for a meeting but this isn’t always possible. When facing safety restrictions or inclement weather, boards may have to rely on email.

Two standards must be met with email or written voting: (1) there must be unanimous consent and (2) every member has to vote. When an individual doesn’t respond, the problem isn’t considered properly voted upon. In this case, turn to phone or video meetings instead.

Underestimating the costs

Boards must always remember that costs change from year to year. For instance, just because that was the rate to hire a property manager for an Airbnb in 2022 doesn’t mean that it will stay the same in the months to come. You must also account for inflation as the prices for goods and services will go up over time.

It’s crucial to have a buffer in your budgeting to consider the fluctuations. You might include a line item for inflation that covers for a 3% increase in costs per year. Also, work with your maintenance team to get a better estimate of expected repair costs.

Overlooking governing documents

In the same way that you want your new hire virtual executive assistant to read their job offer, you want your board members to read the governing documents so they’re familiar with the rules. Some people assume that the regulations are the same in every HOA but that’s not always the case.

Unless you make it a requirement for them to become a board member, they risk enforcing rules that they have no idea about. They may punish residents unfairly by asking for too high fees or imposing fines for paint colours that are actually allowed.

Failing to reserve funds

One of the most common mistakes that associations make is forgetting to save money for emergencies. These funds are necessary for unexpected maintenance and repair expenses. Without them, you may be forced to take out a loan or raise your dues to cover the costs.

You never know when bad weather might sweep through your neighbourhood and damage your common areas. There’s no telling if you have enough to hire a property manager when your current one falls badly ill too. At least 10% of annual budget is a good amount to set aside for your reserve fund.

Overstepping architectural rules

Architectural restrictions must be limited to aesthetics to ensure that properties look harmonious and consistent. Also, they must apply only to the exterior of the homes or units. If you find their fuchsia pink kitchen distasteful, for instance, remember you have zero authority to have it changed.

When evaluating requests, don’t meddle with the permits to avoid exposing the association to liability. Let’s say you approved a shed and it collapses, you might be named a party to the lawsuit. This is because you’re aware of the permit or the lack thereof so you must also be held accountable.

Neglecting to communicate

Amongst the many 2023 HOA trends is one called going virtual. Many associations had to turn to online platforms to connect with residents, vendors, and sellers alike during the pandemic. While this made conversations more convenient, it adds communication challenges there were previously non-existent.

For example, the board assumes that all is well because the group chat or email inbox is empty but the residents think the board doesn’t care that they’re struggling with the hot weather. Create an environment where everyone is comfortable with contacting each other to voice their opinions, ask questions, and more.

Checking budgeting irregularly

You want to be sure that the association is in the black at all times. This means you must evaluate your budget on a regular basis to know if you still have money or not. If you review your budget only once a year, you’re going to face big problems later on.

If you made major financial decisions like hiring a property management company in the past year, it’s even more important to check your budget. There are additional expenses related to your new hire property manager for rental units outside of their on-boarding after all.

Staying in disagreement

There are going to be times when board members disagree with each other, especially during elections or voting. It might be about hiring a rental property manager, choosing a construction contractor, or deciding on a budget for the community-wide picnic. It’s vital to acknowledge the differing opinions but don’t let it escalate.

Once the board has reached a decision, all of the members must stand behind that choice even after voting against it. When an individual remains resentful about a decision, they may involve other members of the community causing confusion and anger. It may even lead to lawsuits when the disunity gets out of hand.

Forgetting to ask residents

Although it’s the HOA board that decides what to do about the budget and rules, you want to consider the opinion of the residents as well. You don’t want them to think that you only have the board’s best interests in mind. Make residents feel represented in your choices and the budget too.

To achieve this, talk with the residents either in person, by phone, through chat, or by email. Ask them about any ideas they might have about admin assistant hiring, pool installation, community gatherings, and more. Their insights give you a better perspective while keeping everyone happy.

Forgoing legal advice

It’s nice to be eager about improving your homeowners association and community. However, before taking any action, make sure to seek legal advice, especially with matters that may put the HOA in trouble with the law. Being too passionate might be viewed as attempting to gain control over the rest of the board.

Never have meetings with vendors, contractors, and residents without the permission or knowledge of the board. Also, always consult with a lawyer or your HOA attorney for important decisions, such as when signing a new vendor contract, hiring an administrative assistant, or facing a problematic resident.

Now hiring an administrative assistant for your HOA?

Being part of the board means investing much resources and time into the neighbourhood. You’re more than just an observer meant to pass judgement without taking action. You’re in a position of authority so you have the responsibility of ensuring the association is managed properly.

While this is easier said than done, you may consider HOA assistance from one of our Workmates here at Remote Workmate. We’re connected to a large network of virtual professionals; some who are experienced in working with homeowners associations.