HOA Accounting and Management Articles and Advice
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.
Tax season is always a stressful time of the year. One of the questions HOA residents commonly ask is, “Are HOA fees tax deductible?” The answer, though, is not as simple. Are HOA Fees Tax Deductible? A homeowners association runs a community by imposing certain rules, preserving its aesthetics, and maintaining various aspects of…
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…
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…
Navigating HOA legal risk management is never easy, especially for volunteer board members who don’t know where to begin. Understanding the risks involved is a crucial first step, as it educates the board on how to prevent these risks from coming to fruition. The Importance of HOA Legal Risk Management Managing legal risks is…
For board members, the HOA vendor cost is one of the biggest considerations when planning the budget. With costs rising this year, boards must make the necessary adjustments and implement strategies to lower expenses without sacrificing service quality. Factors That Affect HOA Vendor Cost Board members are responsible for common area maintenance and repairs,…
Planning spring landscaping in HOA neighborhoods is one of the first major responsibilities boards face each year. Once the winter season ends, communities must quickly shift into the busiest maintenance season. Since landscaping affects many things, board members must make smart decisions. The Importance of Spring Landscaping in HOA Communities Spring marks the start…
Can an HOA invest reserve funds? This is a question many board members and homeowners ask. The answer isn’t so straightforward, as there are many factors at play. Plus, the HOA board must exercise caution and care when selecting which investments are worth getting into. Can the HOA Invest Reserve Funds? To a community…
An HOA loan default has serious consequences and can leave a long-lasting impact on a community’s finances. Board members should be careful when navigating loans, ensuring that their HOA has the capital to pay them off in the long run. Otherwise, the association would not only need to grapple for funds but also struggle with…
Can an HOA change rules without a vote? When faced with displeasing rule changes, homeowners often ask whether boards can change the rules unilaterally. Since homeowners are also members of the community, they wish to have a say in everything that goes on. But votes are not always necessary when it comes to rule changes,…
Smart financial planning begins with a sound budget, and the board can create one with the help of an HOA budget calendar. This calendar outlines the board’s timeline, beginning with data gathering and ending with final approval. While budget preparation may seem like a quick and easy process, it actually takes more time than most…
This year, more associations relied on technology in HOA management. Technological advancements tend to move fast, and next year will be no exception. Gone are the days of manual processes and hard copies. Digital tools reshaped daily operations and homeowner interactions this year, and it looks to be more of the same moving forward. …
Can a HOA management company add service fees not included in the contract? This is a common question among board members, especially when they see charges they don’t recognize on the invoice. Managers are supposed to make things easier for the board, but the working relationship can quickly become strained by unexpected fees. Understanding…
Financial-only HOA management can sound unusual at first, but in reality, many communities find it exactly what they need. Boards may assume that management must come in a single, complete package, but that is not always the case. In the end, financial-only management makes sense for associations that want to keep control of day-to-day operations…