For homeowners association board members and owners, there comes a time when a bad HOA manager will end up making things more complicated than they need to be. It’s always a good thing to make sure the person running the HOA is well-qualified. Is the manager going above and beyond or are they cutting corners? Are they serving the association as a whole or causing much more stress than needed?
It’s important to answer these questions and evaluate just how well an HOA manager is performing. Here are some guidelines that can help determine this, which can help provide direction for board members.
Pay Attention to Laws, Practices, and Liabilities
Planned developments and condominiums usually hire management companies to help them make sure they’re complying with current legal stipulations and avoid legal risks. One thing that can be done on their end is investing in HOA insurance coverage, such as Directors and Officers coverage, which can protect an HOA from claims made against their leaders.
In the case of legal responsibilities that an HOA has, a manager could help keep things in line. Managers should understand the requirements of current HOA laws, and follow a plan to stay in the know. Also, they should make the board aware of developments.
Stay Away from Liabilities
A manager should do what they can to not expose the HOA to liabilities. By demonstrating integrity and careful attention to detail, managers can stay away from exposing the HOA to liabilities such as fraud, unlicensed contractors, and lapsed insurance.
Work for the HOA’s Best Interests
HOA managers should be working with the best interest in mind for their HOA. While individual managers are employees of the management company as a whole, they should never have a conflict of interest when it comes to influencing their decisions for the HOA.
HOA’s should keep ethical governance policies in mind when working with an HOA manager. There have been times when a manager has suggested a course of action for the board that goes against the law. HOA’s should value honesty and be willing to sacrifice a business relationship in order to keep things above board.
Managers should also advise boards when it comes to expiring vendor contracts and give an HOA plenty of time to decide whether or not to renew a contract.
Keep Communication Open
Good management requires constant communication that’s frequent and clear and open. HOA boards should talk to their manager about their needs and provide the right kind of direction if they want to receive exceptional service. An HOA should do the legwork to define what good management means to them and outline the right expectations for a working relationship with a manager.
Finally, a good HOA manager can benefit from having annual reviews and quarterly check-ups to get feedback, give feedback, and decide on a course of action moving forward. Also, acknowledging their success and offering praise will help to bolster a feeling of support and camaraderie, and even encourage them to continue their efforts to help the HOA.
About Kevin Davis Insurance Services
For over 35 years, Kevin Davis Insurance Services has built an impressive reputation as a strong wholesale broker offering insurance products for the community association industry. Our president Kevin Davis and his team take pride in offering committed services to the community association market and providing them with unparalleled access to high-quality coverage, competitive premiums, superior markets, and detailed customer service. To learn more about the coverage we offer, contact us toll-free at (877) 807-8708 to speak with one of our representatives.