Did you know as of 2023, there are around 350,000 Home Owner Associations in the United States?
Every year, more and more groups add to this growing number. Since the industry is growing, it is not surprising there are several benefits to HOAs. They can maintain your property's value, resolve disputes, or improve your neighborhood.
Unfortunately, despite its hard work, the HOA board is still facing several problems. Below, you can uncover three of the most common HOA conflicts and how to combat the issue.
1. Budget Management
Studies show eight out of ten firms fail due to finances. Therefore, budget management for the HOA board of directors is vital.
Although it's not easy to overcome, budget management can prevent issues from arising. This is one of the significant aspects of your system, and there are three key aspects to manage.
- Setting annual budgets
- Collecting fees from homeowners
- Allocating funds for expenses
Since Colorado Springs, CO, has various homes, delegating funds can be challenging. It's crucial to note the size and location of the setting to ensure you stay within your budget.
For instance, the average HOA fee for homeowners is between 200 - 300 USD monthly. But if you are in a large community in Broadmoor, people can expect to pay double, if not triple that amount.
2. Complying With Legal Regulations
Legal issues are the quickest way to land yourself in significant trouble. Learning the ins and outs of the regulations in your area is the most effective way to stay clear of stormy waters.
As an HOA in Colorado Springs, you must adhere to local, state, and federal regulations. In addition, stick to the community's governing documents and bylaws.
Ensuring compliance with these rules can be challenging. This is especially true when dealing with owners who may not know or agree with restrictions.
As an HOA board member, you may need to navigate legal matters, handle disputes, and enforce rules.
3. Communication and Conflicts of Interest
Nobody enjoys disputes, and HOA conflicts are no different. Problems can arise at any time and due to a diverse range of issues.
HOA and Community Association services can organize and fix problems. Some of the most common for members to handle are the following:
- Nonpayment of dues
- Maintenance and repairs
- Rules and regulations
- Noise complaints
- Pet issues
- Insurance claims
- HOA violations
Treating everyone with equal measures is crucial. Not only is it moral, but it can also stop cases from evolving in the future. If residents believe you are too lenient on a specific tenant, it will cause tension.
Clear communication through HOA meetings is essential to stop conflicts of interest. This will prevent arguments from breaking out between board members and homeowners and among the residents. Everyone will have a clear picture of the rules in place.
Overcome the Challenges Faced by the HOA Board
Being a part of the HOA board is a worthwhile experience. However, it does come with a few hurdles to overcome.
After reading our guide, you now understand the most common conflicts of interest. More so, you have discovered our insider tips to help combat issues and prevent them from transpiring in the future.
If you are ready to take your HOA board to the next level, dive into Colorado Casa PMI professional services!