The coronavirus outbreak has led to temporary business closures and a reduction of workdays. As a result, more homeowners are unable to pay their HOA dues. This is when HOA remote management during coronavirus becomes all the more important. In this article: Benefits of HOA Remote Management During Coronavirus The Importance of HOA Dues…
The coronavirus outbreak has forced many businesses to redefine the way they hold meetings. Homeowners associations are not exempt from this. Because board members make decisions during board meetings, most HOAs are concerned about halting operations amid the outbreak. But through HOA remote meetings, your HOA can continue to run without hindrance. In this…
A homeowners association thrives on assessments — fees regularly charged to residents of the community. It is the main source of income for any HOA. But, what if they’re not enough to cover all the expenses? Is there a way to increase HOA cashflow without raising dues? Proven Methods to Increase HOA Cashflow So,…
One very important aspect of maintaining the home values in the community is to have an established HOA architectural review board in place. Even though many HOAs have a system in place to review and approve any architectural requests from association members, few are fulfilling their obligations in a way that is simple for their…
Managing and overseeing the finances of your HOA should be one of the board’s main priorities. That said, many HOA board members may not have experience with HOA financial reports. If you still have questions about financial reports of your association, here’s what you need to know. HOA Financial Reports and The Board’s Responsibility…
Preparing your homeowners association annual budget takes a lot of time and effort. But, HOA budget presentation is an entirely separate undertaking — one that not many people know how to do. Thankfully, there are some tips you can adopt to effectively present HOA budgets to your community. Present HOA Budgets the Right Way…
Everyone knows how confusing governmental processes can get. The Federal Housing Administration is no exception. If you are considering FHA condo approval for your community, here are some of the things you ought to know. Common Questions About FHA Condo Approval Answered There has been a great deal of debate about how to successfully…
When relocating to a new state, it’s important to be aware of new legislation that can affect your housing circumstances. Established residents should also remain informed about housing developments and what protections they have. This is particularly true in the state of California where the Accessory Dwelling Unit law was just passed. What Is…
As volunteers, HOA board members are not always able to sufficiently manage their responsibilities, either because of a lack of expertise or due to time constraints. One of these responsibilities is to handle the financials of the association. A good way to make sure you are covered, financial management-wise, is to outsource HOA accounting services…
What is an HOA reserve study, and should you do it now? If you’re one of the board members and wondering what HOA reserve studies are for, this might just be the right time to learn more. A homeowner association reserve study is always a useful tool to have for budgeting. It’s true whether you…
Knowing what the HOA standard financial statements are as well as how these documents represent the movement of money within a homeowners association, are vital for transparency and accuracy. Homeowners pay monthly/annual dues. The last thing they’d want is to be kept in the dark as to where the funds are being allocated. Standard…
Proper HOA board budgeting is crucial in keeping an association operating year after year. However, issues may come up in a self-managed board with no financial experts in the team. HOA board budget mistakes can lead to serious conflicts between the HOA board members and homeowners. It’s the last thing any HOA management team wants…
HOA audit time is always a busy time for associations. At the end of the year, HOA board members have to start considering whether they need to get a financial audit started. Usually, it is a toss-up between getting a financial review vs audit for HOA books. For some HOAs, there is a need to…
HOA accounting is a vital part of operating a homeowners association, but it can be very tedious and difficult. Because it is so important, you want to avoid inaccurate or incomplete financial reports at all costs. The first step to financial success is to use the best HOA accounting method. The Three Types of…
Your homeowners association reserve fund plays a crucial role in maintaining community assets. To determine the necessary amount, you need to conduct an HOA reserve study. Since there are a lot of strict requirements involved, the process can be quite complex. If you want to properly establish an HOA reserve fund, it may be beneficial…
What are capital improvements, and how do they differ from HOA maintenance costs? Given that both terms deal with community assets, there seems to be some confusion between them. Knowing the difference between capital improvements and HOA maintenance is important — especially when allocating expenses in your annual budget. Here’s an in-depth explanation that will…
A conflict of interest in an HOA can threaten the association’s integrity and reputation. As a board member of a community association, you should understand how to recognize and avoid it. In this article, we will give you some tips on how to keep your community association free from possible conflicts of interest. Defining…
Winter is a wonderful time of the year, but it can also give rise to unexpected expenses for an association. HOA managers must think ahead and make sure the HOA snow removal budget is up-to-date. This way, you can ensure a community runs smoothly even during the cold months. Planning for HOA Snow Removal…
A smoothly run homeowners association proactively plans and tracks financial transactions. By not having proper systems in place or not having someone vigilantly keeping track of records, things can go south really fast. Here are some tips to protect your association’s money and improve overall HOA financial stability. The Keys to HOA Financial Stability…
The ideal bank for a community association is not necessarily the same one you would use for your personal savings. Knowing what to look for in a bank for an HOA, however, can make such a huge difference in the ease of your HOA finances. In this guide, we’ll take a look at how to…
Homeowners association fees are collected in most — if not all — planned residential communities. If you’re thinking about joining one, it’s normal to ask questions like, “What are HOA fees?” and “What do HOA fees cover?” In this article, we will provide an in-depth explanation of HOA fees and what they are used for…
Seasoned board members agree that knowing your association’s finances is essential for making good decisions for the HOA. But, an HOA’s finances are only as good as the system it follows. As such, every association must have a strong HOA financial system as a foundation. Have an Effective HOA Financial System in Place Keeping…
Having the finances well-organized in your community association is essential to maintain a great reputation amongst current and future residents. Many HOAs are not responsible with their finances, which causes them to not operate at their maximum potential. If you want to avoid money problems down the road, consider these financial tips for an HOA.…
A homeowners association budget is essential for the success of your community, but HOA budget planning isn’t easy. You need to organize your finances to cover all maintenance costs, capital improvement projects, and other community expenses. A proper community association budget keeps property values high and ensures the well-being of your residents. Here are important…
Managing your HOA budget is no easy feat. Many HOA boards are learning how to manage the community association budget as they go along. As a result, budgeting mistakes can become a regular part of HOA budget management in your community. However, community association budget management does not need to be a costly learning experience…
When you create your next community association budget, you will likely make some decisions that are unpopular with certain members of your community. To avoid unnecessary conflicts with community members, it is important to make residents feel like they are included in the budget process. Practicing budget transparency makes residents feel important and limits potential…
Modified Accrual Accounting is one of the most popular forms of accounting methods for HOAs. At first, it can be difficult to master for those that do not have prior experience in the accounting sector. To learn more about how to apply Modified Accrual Accounting to your HOA’s books, read and understand the information below.…
About 350,000 communities have HOAs in the United States. HOA stands for homeowners association. It refers to residential properties that are governed by a board of directors. In HOAs, residents are expected to follow rules and regulations. It’s easy to understand the HOA definition; however, there’s more to it than the question, “What does HOA…
HOA special assessments can be a source of friction between the board and community members. What is a special assessment, and how does HOA special assessment rules affect residents? Can an association just call for an HOA assessment or a condo assessment in the case of high-rise communities? Let’s take a look at why HOAs…
When you reside in a property that belongs to a homeowners association, you are asked to pay regular dues. But, many homeowners still don’t fully grasp what these payments are for and how they are computed. So, what are HOA dues? And does it really matter if you stop paying them? In this article:…
HOA, POA, and COA: many aspiring homeowners get confused with these acronyms. Many owners have to decide whether they want to work with any form of HOA, POA, or COA when they are trying to find a new place to live. Read here to learn more about these different types of associations. HOA, POA…
Many homeowners associations are still using traditional check payment methods. Not only does this take up a lot of time and slow down your cash flow, but it can also cause inconvenience to your residents. With the advent of new technologies such as the internet, you can easily start collecting HOA fees online. While integrating…
An HOA statement of receivables, or accounts receivable statement, is a document that details the outstanding charges owed to the community association. This can be from sources such as overdue assessments, vendor credits, late fees, or any other outstanding source of income. It is essentially a list of every account that still owes the HOA…
Among the many financial statements of an organization, the income statement is one of the most essential. But, what does an HOA income statement include? And what purpose does it serve a homeowners association? Let’s find out. In this article: What Is an HOA Income Statement? The Importance of an HOA Income Statement What…
A homeowners association must keep track of its financial transactions to accurately report and assess its financial health. In order to do this, you must have a central location and an organized procedure for recording your finances. Enter the HOA general ledger. In this artcle: What Is a HOA General Ledger? The Importance of…
Managing an HOA can be a time-consuming job. When all the members of the board of directors are volunteers with full-time jobs, families, and social lives, taking care of the many aspects of property management can be difficult. This is why self-managed HOAs require financial management services. Financial Management Services for the Self-Managed HOA…
Hiring an HOA financial manager is a crucial decision for any community association. The financial manager for an HOA does more than just accounting and banking. They provide expert financial management, just like most professionals in that area. More importantly, they specialize in HOA fiscal management, which makes them extra valuable for a HOA board.…
If your community has less than 200 units, chances are that your HOA is self-managed. It makes sense. Smaller homeowners associations do not have the funding or need to be professionally managed by a full property management company. If you self-manage a community association, here is how to do it. In this article: Tips…
bYOU SHWhether you are aware of them or not, HOA bank statements are a necessary tool in assessing the financial health of your organization. But, for many people, understanding bank statements is an uphill battle. Here is everything you need to know about HOA bank statements. In this article: What Are HOA Bank Statements?…
Any homeowners association relies on the standard financial statements to assess its financial health. One of these statements is the balance sheet. But, what actually goes into HOA balance sheets? And what is the key to understanding them? In this article: What Is a Balance Sheet? Parts of HOA Balance Sheets Assets Liabilities Equity…
HOA accounting is probably one of the most complex, and most important, responsibilities of the association board. Preparing financial reports on a regular basis is important for many reasons. They help financial planning. They also promote transparency between board and members. Or they could simply be required by law. The frequency of preparation of HOA…
HOAs, regardless of their size, need a formal structure. They need it in order to function in the best way possible for their residents. By having HOA governing documents, it is easier to resolve potential disputes that may occur down the road. Whether you are on the board of your HOA or simply a member,…
HOA bookkeeping is an essential aspect of association management. However, as many HOAs lack accounting and finance experience, it can be a struggle to deal with bookkeeping tasks and responsibilities. This can result in financial mistakes that could harm your community. If you need help in this area, it might be time to consider a…
What are reserve funds? Homeowners association reserve funds are one of two principal accounts necessary to manage your community. As a homeowner who pays monthly dues, it’s important to understand the purpose of reserve funding and how it is used by the association. Here’s everything you need to know about HOA reserve funds. What…
Does your homeowners association need professional help? Is there no room in your budget for an on-site HOA manager? Enter remote HOA management — the answer to all your problems. In this article: Hiring Remote HOA Management Services What is HOA Management? Roles and Duties What Is Remote HOA Management? Benefits of Hiring a…
Some HOA board members might consider accounting boring or difficult, but its role in financial stability is undeniable. Before anything else, your HOA must decide on a basis of accounting to use for financial reporting. While the cash basis for HOA financial statements is the easiest, it’s not exactly the best. In this article:…
The financial responsibilities of HOA boards are far-reaching and wide. While some of these responsibilities are obvious, others may surprise you. Let’s break down the many financial duties you, as a board member, must fulfill. Remember These Financial Responsibilities of HOA Boards As a member of an HOA board, you are representing your entire…
Remote HOA management — you have probably heard of the service from a friend or fellow board member. But, what is remote HOA management anyway? And is it really something your community can benefit from? In this article: What Is Remote HOA Management? Remote HOA Management Services Financial Management Back Office Services Collection Services…
Amenities. Comfortable community-living. Security and peace of mind. These are just some of the things that draw people to homeowner association communities. Services provided by homeowners association vendors are vital to keep a community attractive. Are you getting the right vendors for your HOA? The vendors in a community need to be vetted to ensure…
Developers usually enlist the help of an outside company to manage a new community. However, at a certain point, the management responsibilities are passed on to a board of elected officials. It is then their responsibility to figure out a management style. Unfortunately, many HOA boards aren’t aware of their options and simply continue to…
One of the essential duties of the HOA board is to review the annual budget and make adjustments when necessary. Unfortunately, not every budget will have enough wiggle room especially when it comes to operating expenses. The good news, however, is that there are other measures that can help trim your budget to more manageable…
HOA record keeping is more than just filing documents into a folder and stuffing it in a desk drawer to gather dust. It requires meticulous organization and an intricate system to carry out correctly. Unfortunately, not all HOAs have a good method for keeping records. HOA Record Keeping Done Right Sorting through a stack…
No community will ever be immune to homeowners association fraud, embezzlement, or mismanagement. Although no one wants to look upon other board members with suspicion or doubt, there are always risks when dealing with HOA finances. Board members should be on the lookout for red flags that may indicate that funds are being handled incompetently…
Can HOA fees go up, and when do do, how much can HOA fees increase? These are some questions many HOA members often ask about their homeowner dues. How often do HOA fees go up depends on the circumstances of a community. As a community manager, you have a lot to manage when it comes…
The financial health of an HOA is an important matter not just for the HOA board, but also for members as well. How would you know about the fiscal health of the HOA? There are many ways to check HOA financial health. Your home and neighborhood is always worth the time to look into your…
The management of a homeowners association involves several parts, the most confusing of which is financial management. HOA boards with no experience in preparing financial statements and filing taxes often look to professionals for help. Here is why a CPA for an HOA is essential and how to find the right one. In this…
Processing invoices can be a sore spot for many homeowners associations. It takes a lot of time and effort to organize and prepare them. If you fall find yourself in the same boat, then it is time to consider automated HOA invoice processing. What Is Automated HOA Invoice Processing? To put it simply, invoice…
Whether you are planning on taking the burden of the yearly budget upon the shoulders of your HOA board, or you plan to get the assistance of an HOA management company, the annual budget is one of the most important items on the agenda of any homeowners association. Here is your step-by-step guide on how…
Delinquent payments are one of the hardest things to deal with as an HOA board because you may be dealing with people who are your friends and neighbors. Although there are certain strategies for avoiding delinquent payments, every board will likely encounter this problem at some point. When you do, here is how you should…
It’s not easy to deal with delinquent homeowners association dues. While every board hopes that residents in their community will pay their HOA fees on time, you cannot always guarantee it. In extreme situations, the board may need to call on a debt collection agency for HOA delinquency cases. HOA collection services can be very…
Even with the advent of new technologies like the internet, many homeowners associations are still stuck in the paper age. If your community still uses traditional paper statements and checks, it’s time to upgrade your method of HOA collections. There are many advantages to paying HOA dues online — both for the association and the…
How to lower HOA fees and make residents happy? That’s a question many HOA board directors try to answer as they step into the position. But first, why are HOA fees so high in the first place? That’s a good approach to look for ways to reduce HOA dues. When HOA fees are too high,…
Tax season is upon us, and if you are new to filing taxes with your HOA, you may have many questions about which forms need to be filed, whether you are tax exempt, and what to do if your HOA has not filed in a couple of years. In this post, we will answer some…
As a homeowners association (HOA) member that pays fees each month, it’s only right that you know what your money is being used for. One of the most important tasks of an HOA board is to allocate these funds. HOA fees are usually distributed to two accounts: operating funds and reserve funds. While both accounts…
A homeowners association is led by competent leaders in the form of a board of directors. One of the members in an HOA board is the treasurer. But, beyond being responsible for money matters, what does an HOA treasurer do? Let’s find out. What Tasks Does an HOA Treasurer Do? Whether you are a…
Self-managing your own HOA finances is a fairly difficult undertaking. Successful HOA finance management requires a certain level of expertise and experience. For that, look to HOA financial management services. Why Hire HOA Financial Management Services? It can be tempting for HOA board members to try and handle all aspects of association management themselves.…
HOA budget committee responsibilities come up in a major way once a year. When it’s time to draw up a budget, most HOA committee guidelines have provisions for a budget board. The need for this specific committee is pretty obvious then. But what does a budget committee do the rest of the year? As it…
Hiring an association management company can be a great way to increase the quality and efficiency of your community. But, unless you know what to look for, bringing on the wrong management can potentially cause more trouble than it’s worth. To avoid the latter, here are the qualities to look for when searching for your…
When individuals are elected to the HOA board, they take on the responsibility of managing the community. Board members have to make important decisions for the association so they need to have a solid grasp of community management. HOA board member training is one of the best ways to prepare them for what’s ahead. Here’s…
How much does an HOA audit cost? As board directors go over their HOA audit fees, they often wonder if the cost of HOA audit is money well spent. An homeowners association audit does not come cheap. Given the average cost of an audit, paying for a specialized one for an HOA can get costly.…
Break out your year end accounting checklist, time to close out the year end accounts. Check every box of your fiscal year end closing procedures. Cross out each line of your accounting closing checklist. It’s a lot of work, but we hope this year end closing checklist helps you with your accounting year end procedures.…
Hiring a professional HOA management company is an important decision. There are many factors to consider such as monthly costs and the board’s available time. Some self managed associations can run efficiently through their board members while others need a manager to take over daily operations. Which option is the best for your community? If…
Many board members misunderstand their role when it comes to homeowners association accounting. This becomes a big problem when a financial issue you must handle arises. It’s important to become well-versed in all accounting aspects to better perform your duties in an HOA. In this article: Understanding Homeowners Association Accounting Breaking Down Monthly HOA…
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