Can Small HOAs Afford Management?
Ironically, it is the small homeowners’ association that needs the most support and can least afford it. These small associations are faced with very limited resources including an extreme shortage of willing volunteers and thus a very real shortage of time. While even the largest HOAs would say there is never enough time or willing volunteers at the ready, this pain is felt acutely by the small, self-managed HOA. A rule of thumb is that one-third of your homeowners possess the natural skills and personality traits to be an effective board member. For a small community, this means you may have already tapped into your best volunteers. While turnover and “new blood” in board membership is generally a good thing; after several board terms, small communities can easily run through the list of all the homeowners who are willing and able to serve.
Typically the larger HOAs can afford to rely upon a management firm for support. A good management company has knowledge of the community association industry, best practices, legal requirements and responsibilities. HOAs without access to a management company, must invest numerous hours researching their state’s homeowners’ association laws and engage in a process of self-education. Obviously this doesn’t leave much time for board meetings, neighborhood communications, or time to build a stronger sense of community. The end result is often a burned out, frustrated association board… that is ready to throw in the towel and give up. If this sounds like your association, don’t give up yet! There is hope and new options available.
An alternative to “traditional association management” is homeowners’ association consultative services. Consulting services provide access to the knowledge base offered by most community association managers without the expense of full management. Consultation allows a partnership, or collaboration, between the association board and an expert, eliminating the need for hours of research and giving the board the confidence to make “informed decisions” based on community association best practices.
A good consultant can provide training and tools to help the association become stronger and self-sufficient. Some communities simply want a consultant to help the board get “back on track” so they can then operate independently of the consultant. Others may want to engage the consultant for help on an annual basis with very specific and challenging tasks. Either way, engaging a consultant often provides enough support and confidence to give exhausted volunteers a second wind. Sometimes knowing that as a board member you will be able to tap into the skills of a professional, may be enough of a carrot to stay engaged. It is can also make serving on the board more appealing to prospective board members.
When selecting a consultant to hire, be sure to do your homework and check credentials. There are many management consultants, but only a limited number that specialize in homeowners’ associations and understand the legal requirements and business practices.
