How Hiring An HOA Management Company Can Save Your Community Money

Homeowners Associations (HOAs) include community members and managers. They come together to ensure that the neighborhood is kept in order and organized. But most importantly, then ensure that the community is safe for all the residents.  

However, this means there is a lot of work to be done, and it’s not something that each member can handle on their own. This is where professional HOA management companies come in.

Unfortunately, many HOA board members and property developers are not aware of the value that an HOA management company can bring to their property. 

In this article, you can discover how an HOA management company can save communities time and money. For instance, they’ll help streamline your process and help you get more efficient at running your HOA.

Top 5 Reasons to Hire An HOA Management Company 

Many HOAs take on a lot of unnecessary tasks trying to manage their communities. In many cases, they spend outrageous amounts of money on contractors that don’t deliver what they promised.

Below are the top five reasons every community can benefit from hiring an HOA Management Company. 

#1 They Negotiate Less Expensive Contracts with Vendors

HOA management companies work with many local COAs and other HOAs. So it’s likely that the company you work with has engaged a contractor to carry out ongoing tasks. For instance, things like lawn care, pool maintenance, and irrigation in other neighborhoods they manage are good examples. 

Another example is how a management company might hire a contractor to maintain pools or ensure that public areas are kept clean in certain communities. 

In fact, HOA management companies typically have a list of vendors that come with recommendations and have proven their value over the years.

They know people who provide outsourcing services and contractors who work in other communities or private homes in the area. They are also familiar with the going rates for specific services, including landscape and pool maintenance. 

Property management companies can negotiate cheaper service contracts with licensed contractors. This in turn allows property owners to achieve significant savings in the long run. 

# 2 They Have Vendor Connections & Networks  

HOA management companies, especially the established ones, have a considerable vendor network base. For instance, if they’ve been in the industry for many years, they typically have more resources. 

As a result, they have long-standing relationships and professional connections with horticulturalists, plumbers, carpenters, electricians, and other contractors. 

If you want to hire a contractor to do something for your community, you expect it to be done professionally and for a fair price. If you take on this task yourself, you’d have difficulty sifting through all the local vendors to determine which ones are reliable and trustworthy. 

Hire an HOA management company to save yourself the hassle of doing extensive research to ensure the professionalism of each vendor. They have already been thoroughly vetted and will assist you in choosing and hiring licensed, trustworthy contractors. 

This will also ensure you get high-quality service for all your projects at a lower cost! 

#3 HOA Management Companies Have Legal Knowledge

There are also legal benefits of hiring an HOA management company that can help you save money. These companies know the law pretty well, so they are quite knowledgeable about rules and current legislation that pertain to HOAs in your state. 

On the other hand, community board members often lack legal expertise and inadvertently break state laws, leading to high litigation expenses and penalties. 

If you work with an HOA management company, you can rest assured that your homeowner’s association’s activities will always comply with governing laws and regulations. Above all, it will also provide you with peace of mind knowing everything is handled correctly. 

Their team of experienced in-house lawyers will review your HOA policies and ensure everything complies with state laws. This is an excellent way to reduce the risk of facing unnecessary court costs. 

It’s not just one less thing to worry about; it also means financial savings for your community. Furthermore, HOA management companies will help you avoid paying attorney fees for legal advice or simple guidance. 

#4 They Can Complete Reserve Fund Studies for Your HOA

Every association-governed community is required to do a reserve fund study annually. It is intended to help property owners and community board members determine how much money they should set aside for replacements and major repairs.

For example, the reserve fund is often used to pay for things like:

  • Unexpected expenses, such as storm damage repairs
  • HVAC replacement or old heating system repairs
  • Roof and equipment replacement
  • Legal costs, such as court fees
  • Planned expenses, such as maintaining common areas (lobbies, parks, tennis courts, pools, etc.)

Even if you have a clear idea of what your HOA budget should include, hiring a management company to perform a reserve fund study for your community is still recommended. 

You will know exactly how much money should go into the reserve account based on the results. This will ensure that your community doesn’t divert money from another financial account to fund its reserve.

Once you’ve completed a reserve fund study, have an expert look at the long-term finances of your association. This is essential for future planning and benefiting from more significant savings for your community.

HOA management companies can save your community money by streamlining the annual budget. They can also give you some ideas for cost-cutting in administration, upkeep, management, and other areas.

#5 Eliminate HOA Website Expenses

Firstly, creating an app or building an HOA website can be costly. However, you can eliminate this cost by hiring an HOA management company and saving money. Secondly, they have all the tools and technology necessary to provide each community with the essential basics. 

For instance, many management companies run platforms that let residents pay various fees and dues online. Likewise, some use different apps that allow associations to monitor work orders from anywhere. 

Rather than paying for expensive IT services, hire a property management company that provides administrative and technology tools. They will help you host and run your website at a fraction of the cost. 

Lastly, look for an HOA management company that offers relevant software at no extra charge. That may include everything from homeowner to resident tools such as visitor tracking, work orders, violations, and collections. Use their existing infrastructure to your benefit!

Wrapping Up

In conclusion, homeowners associations provide a valuable service to communities across the country. If you are an HOA manager, you know how difficult it can be to handle many things. Above all, hiring an HOA management company can help reduce your HOA dues, save your community money, and benefit all members. 

Contact us today for more details about how we can make your life easier!