Many people expect to have a yearly physical exam that includes checking pulse, blood pressure and cholesterol. The same principle holds true for homeowner and condominium associations. Just like having a healthy diet and balance in your personal life, maintaining the health of your HOA is essential.
Below is a list of items that the HOA Board should check annually to measure your performance. Some of these are a quick check based on your experience, so go with your first reaction. You may need to review some documents or your minutes for other items. Ask each Board member to rate these items on a scale of 1 to 5 (with 5 being the best), so you can easily identify gaps and improvement opportunities.
- Reserves – HOA has adequate reserves demonstrated by a reserve study and avoids special assessments.
- Insurance – HOA maintains all necessary insurance coverage.
- Leadership – HOA has adequate and effective Board participation and committee volunteers.
- Meetings – Board conducts effective and productive meetings (timely, agenda, results-oriented).
- Governance – Association is managed according to governing documents and applicable laws.
- Delinquencies – Assessment delinquencies are less than 5%.
- Financial – HOA has a formal budget, financial report and follows fraud protection measures.
- Covenants – HOA fairly enforces covenants and conducts inspections to ensure compliance.
- Maintenance – Program is in place for routine upkeep and replacements.
- Vendors – Contracts are awarded based on project specifications and vendor qualifications.
- Communications – Effectively reach residents via multiple communication channels.
- Forums – Owners and residents have an opportunity to address Board in a forum.
Summarize ratings from all Board members. You’ll probably find that most items are rated consistently by all Board members, but be on the lookout for a wide variance. If one member gives “Vendors” a 2 and another member rates it with a 5, that signals a need for discussion.
After you have a good understanding of the ratings and have the information summarized, you’ll see gaps at a glance. If your association’s “pulse, blood pressure or cholesterol” is a little high, implement a new fitness plan to get them back in shape. You’ll be running on a new and improved path in no time.
Wise Property Solutions serves condominium and homeowners associations by addressing their financial, association and facilities management needs. The only certified and licensed community association management firm serving the Mountain South (Virginia, North & South Carolina, Tennessee) with offices in the Tri-Cities and Knoxville. Wise Property Solutions provides condo and homeowners association management services in Johnson City, TN; Bristol, TN; Kingsport, TN; Knoxville, TN and the surrounding region.