The Top 10 Tasks an HOA Management Company Can Help You With

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HOA management companies are essential to a well-run HOA or condominium community. However, if you are new to these companies, you may not be sure what tasks you can expect an HOA management company to help you with.

Don’t despair. In the rest of this article, we answer that very crucial question.  

The Top 10 Tasks That an HOA Management Company Can Help You With

An HOA management company provides a wide range of services to help effectively manage and maintain a community. Below we describe the top 10 tasks an HOA management company can assist you with. 

1)      Administrative support
Administrative duties often provide the biggest drain on Board resources. They can be time-consuming and monotonous. An HOA management company can take on all these tasks, including the following.  

·         Budgeting
·         Coordinating meetings
·         Answering phone calls and emails
·         Creating reports 

2)      Common area maintenance
The common areas are the heart of an HOA. These are spaces for homeowners to gather and the community to come together. The best HOAs have immaculate common areas, a goal an HOA management company can help you achieve. You can expect the following common area maintenance services from these companies.  

·         Maintain storage areas
·         Enforce rules and regulations
·         Hire and oversee vendors
·         Manage trash and yard maintenance in common areas 

3)      Vendor management
Vendors do most of the services provided to HOAs. Your Board can spend much time hiring and maintaining vendor relationships. And in some crowded specialties, finding the best vendors can be a challenge.  

With HOA management companies, those issues go away. They will provide the following services.  

·         Interview and hire vendors
·         Manage contracts
·         Obtain bids
·         Oversee vendor performance 

4)      Financial management
One of the most crucial tasks of an HOA is financial management. A financially sound community will attract homeowners and stand out. HOA management companies can help you keep your HOA in good financial standing by doing the following.  

·         Collect and manage dues
·         Create a budget
·         Handle financial reporting and statement
·         Pay bills  

5)      Community improvement projects
HOA communities should always attempt to improve themselves. Undertaking regular community improvement projects, such as tree planting or trash pickup days, are a good way to do this. An HOA management company can organize and oversee all projects to improve your community.  

6)      Communication
You will have less conflict in your HOA if you communicate well. Let your HOA management company stay on top of communication with residents so you do not have to. They will do this in the following ways. 

·         Create a community website and online portal
·         Provide online payment systems 

7)      Board training
HOA Boards are comprised of volunteers. They may need training to be the best at their job. HOA management companies can provide this training, along with the following:  

·         Help in strategic planning and decision-making
·         Provide guidance
·         Offer their expertise  

8)      Dispute resolution
No matter how well-run your HOA is, there will be conflicts. When disputes happen, an HOA management company can be an objective third party and help you resolve those issues. Common disputes that HOA management companies can handle include  

·         Noise complaints
·         Property line encroachments
·         Rule violations 

9)      Community policies enforcement
Everyone in the HOA needs to abide by the rules. That is why all HOAs have a CC&R, covenants, conditions, and restrictions. Your HOA management company can help enforce the rules in these documents. 

10)  Billing and collections
Finally, HOA management companies can assume the two important billing and collections tasks. These involve the following.  

·         Bill residents
·         Collect dues
·         Handle delicate accounts
·         Issue delinquent notices 

If you are ready to experience the difference an experienced HOA management company can make, contact Association Management Group (AMG). Our experience will translate into a successful community for you.

Navigating Rising Property Casualty Insurance Rates in 2023: Best Practices for Condominium and Homeowner Associations

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As a professional condominium or HOA manager or community leader, it's essential to stay informed about the latest trends and challenges that impact your community. One significant concern that has emerged in 2023 is the rising property casualty insurance rates. In this blog post, we will explore the reasons behind these increases, discuss the extent to which rates are rising, and provide best practices to help your association mitigate the impact. We strongly advise relying on a qualified insurance professionals for specific guidance tailored to your association's unique circumstances.

Understanding the Reasons for Increasing Rates:

Several factors contribute to the upward trajectory of property casualty insurance rates in 2023. These include:

1. Natural Disasters: Climate change has intensified the frequency and severity of natural disasters, leading to an increase in insurance claims related to property damage. Severe storms, wildfires, and flooding events strain insurance providers, prompting them to adjust rates to maintain financial stability.

2. Inflation and Rising Construction Costs: Inflationary pressures and escalating construction costs have significantly impacted insurance premiums. The costs associated with repairing or rebuilding damaged properties have surged, consequently driving insurance rates upward.

3. Legal and Liability Concerns: The legal landscape surrounding liability claims has become increasingly complex. Growing litigation trends and higher settlements have elevated insurers' risks, leading to higher premiums for policyholders.

The Extent of Rate Increases:

The magnitude of rate increases can vary depending on various factors such as location, property type, claims history, and coverage limits. However, it is not uncommon for property casualty insurance rates to rise by double-digit percentages in 2023. Some associations, even with no recent claims, have reported premium increases of 20% or more during policy renewals. These significant jumps can strain association budgets and require proactive measures to minimize the financial impact.

Best Practices to Mitigate Higher Rates:

While it may be challenging to avoid rising property casualty insurance rates entirely, there are several best practices your association can implement to minimize the impact:

1. Risk Management and Loss Prevention: Prioritize proactive risk management practices to reduce the likelihood of claims and property damage. Implement preventive maintenance programs, enforce safety protocols, and engage with insurance professionals to conduct regular risk assessments.

2. Review and Update Insurance Policies: Work closely with insurance professionals to review your association's insurance policies annually. Ensure your coverage adequately reflects the current value of your property and aligns with your risk profile. Consider higher deductibles or alternative risk transfer mechanisms, such as captive insurance or self-insurance, if appropriate for your association's financial position. Also, consult your attorney to make sure the association understands its duty based on governing documents and laws related to insurance. 

3. Seek Competitive Bids: Regularly solicit competitive bids from multiple insurance providers to ensure you are obtaining the most favorable rates and terms available in the market. Engage insurance brokers or agents who specialize in community association insurance to navigate complex policy options effectively.

4. Loss History Management: Develop a comprehensive loss history report and demonstrate your association's commitment to risk management. Highlight steps taken to address any previous claims or property damage and show insurers that your association is proactive in mitigating future risks.

5. Engage with Insurance Professionals: Establish a collaborative relationship with insurance professionals who specialize in community association insurance. Their expertise and guidance can help navigate policy complexities, negotiate favorable terms, and identify risk mitigation strategies specific to your association's needs.

The rising property casualty insurance rates in 2023 pose a significant challenge for condominium associations. Understanding the underlying reasons for these increases, monitoring the extent of rate jumps, and implementing best practices can help associations mitigate the impact on their budgets. Remember, seeking guidance from insurance professionals tailored to your association's unique circumstances is crucial for making informed decisions and safeguarding your community's financial well-being.

6 Fall Tasks For HOAs

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September officially ushers in the fall season. It’s time to gather the board and make plans for the coming months. Fall is a great time for community holiday centered events. If your community is in the cold part of the country, the coming months can bring cold temperatures.

Here is a task list every HOA should implement while the weather is still mild.

1.       Maintenance & Repairs: Assess the common area buildings and exterior property needed after summer repairs and maintenance. It’s important for the board to start initiating work orders for any needed repairs on the exterior surfaces of the community.

2.       Plan Fall and Winter Lawn Maintenance with Landscape Vendor: The mowing schedule will change during the fall and winter. Summer season flowers or shrubs may need to be replaced. Mulch and other ground maintenance may need to be put in place for the fall season. In the off-season residents, visitors, realtors, and prospective buyers will notice an unkept community during the winter. It is important for the HOA board to have new schedules and changes put in place until spring rolls around.

3.       Fall and Winter Amenities Preparation: Swimming pools, golf courses, playgrounds, and other amenities need to be prepared for the cooler months. If your HOA closes the pool during extreme snow or cold, it is important to schedule this with your pool company. If your HOA is shortening hours for outdoor recreation areas due to shorter daylight hours, it is important to notify residents of changes and closings.

4.       Plan for Fall and Holiday Activities: Add a planning session to your board meeting agenda for holiday events, fall festivals, holiday parties, and community gatherings. Plan well in advance to give the community plenty of time to add events to their busy holiday schedule. Consider community entrance decorations and expenditures for holiday related costs. Notify residents in advance of any specific rules pertaining to holiday gatherings.

5.       Community Safety Changes During Fall and Winter: If your community has a security vendor or security guard, the hours may change due to shorter days. During the holidays there may be visitors parking throughout the streets of the community. Designate parking for community events. Assess streetlights in the community, community emergency lighting, community entrance lighting, and lighting around the common areas and amenities. Notify residents of any policies regarding property decorations and lighting. It is important to be aware of holiday decoration safety issues around Halloween and Christmas.

6.       End of Year Budgeting: As things begin to slow and the fiscal year comes to an end, preparing for the New Year is essential. HOA boards should have next year’s important items on the agenda and begin advance planning for large additions, community expenditures or major projects slated for the spring season.

Fall brings excitement leading up to the holidays. HOAs should always put safety first and make this time of year enjoyable for all residents. We hope this task list will help your association or management team provide a safe holiday season for everyone in the community.