There is often a question of ethics and fairness when an HOA profits from HOA dues. Since a homeowners association exists to maintain the community, its primary goal should not be to earn a profit. It is not a for-profit organization. However, many often wonder if it is legal and what an HOA can do…
When an HOA is in debt for years, it can create serious issues for the community. Homeowners associations are responsible for managing common areas, maintaining property values, and ensuring residents’ good quality of life. However, financial mismanagement or unexpected expenses can push an HOA into long-term debt, affecting operations and causing satisfaction to plummet. …
Unfortunately, it’s not uncommon to find suspicious financial activity in HOA communities. HOAs hold a lot of power over community life. The board and staff are responsible for managing the HOA’s finances to ensure smooth operations. Not all of them are trustworthy, though, so fraud can happen. Here’s what to do if you suspect illicit activity…
Integrated banking systems for HOAs are designed to bring all financial activities under one digital roof, offering a seamless experience for both administrators and residents. Given the critical role HOAs play, efficient financial management is essential to ensure smooth operations. With an integrated banking system, the days of juggling spreadsheets, manual accounting, and physical bank…
Board members should familiarize themselves with the process of HOA bank reconciliation. This practice, typically done regularly, can be a powerful tool in helping prevent fraud within the association. With the prevalence of fraud and fund mismanagement cases, keeping a close watch on your association’s finances is becoming even more essential. What Is Bank…
Many homeowners associations mistakenly believe that they require full-service management for smooth operations. However, this kind of mindset might cause associations to overspend on an expense they don’t even need. What Is Full Service Management? Full-service HOA management refers to professional management performed on-site. With a full service management setup, an HOA manager typically…
Practicing checks and balances in your HOA is a good way to protect the association’s funds, but not many boards even know where to begin. Fortunately, there are some steps you can take to ensure you keep your finances in check. The Importance of Establishing Checks and Balances in Your HOA Homeowners associations deal…
As an HOA board member, finding vendors for your HOA is one of your most important duties. Unfortunately, many boards opt to settle for cheap vendors that deliver poor results all in the name of saving the association money. What these boards don’t know, though, is that vendor selection can impact the HOA’s bottom line.…
In a homeowners association, what is the role of the finance committee? For some, an HOA financial committee is a prerequisite to success while others do not seem to be convinced of its importance. When it comes to your HOA, do you really need a finance committee? Here’s what you need to know to answer…
Homeowners associations rely on a constant stream of funds in the form of assessments to cover the community’s operating expenses. But, there might come a time when this stream is interrupted for whatever reason, necessitating an HOA loan. What Is an HOA Loan? Simply put, an HOA loan is a sum of money your…