How HOA Management Companies Can Help Your Community Financially
Some association-governed communities hesitate to hire HOA management companies to save money. However, when you consider the ways in which working with HOA management companies can benefit a community financially, hiring an HOA manager can be less costly than not hiring one. Below are four important financial benefits that an HOA management provider offers to association-governed communities like yours.
1. Outsourcing Services
A community management provider can help your neighborhood stretch its operating budget by outsourcing services that are essential for the proper maintenance and operation of the neighborhood, such as: landscaping, financial planning, HVAC maintenance, and legal advice.
Using third party service providers to render these services and others can be significantly less expensive than hiring full-time employees to perform the services in house.
2. Vendor Contract Reviews
If the board agrees to outsource services to third party vendors, it will need to have vendor contracts reviewed before they are accepted. HOA management companies can ensure that the neighborhood receives fair contracts by performing the reviews.
Management providers can also handle the vendor bidding process, and perform scheduled inspections to ensure that work is performed as described in service contracts.
3. Reserve Fund Studies
Association-governed communities need a reserve find that is used for unexpected expenses, such as storm damage repair and legal costs; and planned expenses that are still in the offing, such as roof replacement and the replacement of old HVAC equipment.
Most community management providers recommend a reserve fund study to be performed annually. Using the results of the study to properly fund the reserve account can prevent your community from having to divert money from other financial accounts to the reserve fund.
4. Project Planning/Management
Without proper planning and management, the expense of a community project can spiral out of control, and the project may run over schedule, as well. A community manager can prevent these occurrences by performing project planning and management. The provider can also perform quality control inspections to ensure that work is performed as described in the contract.
Need an HOA Manager?
Association-governed communities often hire an HOA manager to assist board members with business matters that the board lacks the time or training to handle. However, as time goes on, communities often realize that the management provider does more than just provide the board with more time and resources; it also helps to improve community finances in various ways.
For more information about the financial benefits of hiring an HOA management company, contact an experienced HOA management consultant today to schedule a free consultation.