Addressing Chronic Issues in the HOA Property Management Industry
The HOA Management industry is plagued with several chronic issues: a lack of planning, inconsistent communication from property managers, financials that arrive late and/or are inaccurate, and unpredictable timelines for general deliverables. At CAP Management, we have developed five core guarantees to ensure these shortcomings do not affect your HOA.
1. Complete, timely, and accurate financials.
Board Members are the financial stewards of their HOAs, and timely access to accurate financials is crucial. Reviewing financials before the Board Meeting allows the Treasurer to ask informed questions about the financials and their relation to the reserve study and upcoming cash needs. At CAP Management, we address this by employing a rigorous three-step review process:
- The accounting department posts expenses to the appropriate accounts.
- Your property manager, who has direct knowledge of the invoices, double-checks the accuracy of the coding.
- Finally, the Accounting Manager performs a final review to ensure precision.
2. A Weekly Email Update to the Board of Directors
The top complaint we hear regarding other HOA management companies is managers who are inconsistent in their communication and a general lack of reporting. We interact with Board members all week long, but we know that Boards can benefit from a clean summary of what has been done, any delays that may be encountered, issues that the Board may be unaware of, seasonal reminders, etc. But a report of our accomplishments, setbacks, updates on new and old business, and general reminders, is provided weekly to your Board of Directors via email. And it all ties to a 12-month strategic plan…
3. A Strategic Plan for all HOAs
There are so many priorities in an HOA. Some are actionable, others theoretical. Some pressing items need immediate attention (bids for a new landscaping vendor). In contrast, others are simply ideas that we want to ensure don’t slip through the cracks (is our HOA eligible for any grants or credits for water wise landscaping?). Keeping track of action items, strategies, and goals is essential. To help Boards stay on track, we collaborate with them to create a “two-page strategic plan” for the upcoming year. This plan serves as a guiding document that aligns with the HOA’s mission and the Board’s vision and includes a detailed 12-month, 3-month, and 1-month to-do list. As we complete the tasks for each month, we roll down the 3-month tasks into the 1-month list and reassess the 12-month plan to ensure ongoing alignment with the HOA’s goals.
4. Timely Board Packets and Draft Minutes
We’re all busy people, and having the time over the weekend before the Board Meeting to review the Board Packet eliminates last-minute questions and provides for a smooth-running meeting. While the meeting minutes are not approved until the next Board Meeting, a transcription no later than three days after the meeting allows everyone to make sure they are on the same page and that the minutes accurately describe the decisions made at the meeting. Fun Fact: HOA minutes are a record of decisions made, not conversations. We work to be clear and efficient.
5. Monthly E-blasts to All Homeowners
Communication is not just for Board Members: we also report to owners monthly because the industry is hungry for it. Those who attend the Board Meetings and the Board are intimately involved with everything that is going on in the community, but owner participation and engagement are down. Keeping everyone else in the loop replaces the monthly newsletter we used to mail to all homeowners. This communication includes updates, accomplishments, recommendations, and helpful tips such as local restaurant openings, seasonal maintenance considerations, and industry best practices.