Homeowners associations (HOA) play a crucial role in maintaining a cohesive and attractive community, particularly so in Winston-Salem where vibrant living spaces define the cityscape. Running an HOA can be complex, with plenty of regulations to follow and residents to please. If you’re a member of an HOA board here in Winston-Salem, you know that the success of your community relies heavily on effective management. Here, we outline the essential do’s and don’ts that will help steer your HOA towards success and harmony.
DO: Understand and Adhere to Local Laws
HOA boards must be familiar with any laws and regulations that govern homeowner associations within North Carolina. This includes understanding state statutes and local Winston-Salem ordinances that affect your HOA’s operations. Stay informed and compliant to avoid legal challenges.
We have talked about some of the most important state laws that govern how your HOA is established and managed. Here’s a quick synopsis:
- North Carolina Planned Community Act
The North Carolina Planned Community Act governs homeowners associations in North Carolina, including how they must be created, managed, and operated. It requires compliance from any HOAs that came into being from January 1, 1999, forward.
- North Carolina Nonprofit Corporation Act
Your HOA is a nonprofit. You DO have to think of it that way, and this means you must abide by this law, which provides operational practices and requirements for your association.
- North Carolina Condominium Act
If your association is a condo association, you’ll want to pay attention to the requirements in this law on how your association is formed and administered. It applies to condo associations formed after October 1, 1986.
Follow all fair housing laws, too, on a state and federal level. These prohibit discrimination from homeowners associations on the basis of:
- Religion
- Race
- Familial status
- Color
- National origin
- Sex (including gender identity and gender expression)
- Disability
DON’T: Neglect Transparency
Transparency is key in all HOA operations. Ensure that all board decisions, financial reports, and rule changes are openly shared with association members. Lack of transparency can lead to mistrust and legal headaches.
A transparent HOA does more than just share information. It inspires trust. Members are more likely to follow rules and contribute positively to the community when they understand the decision-making process. They feel valued and heard, which can lead to a stronger, more harmonious community. HOA board members, therefore, have the responsibility to not only relay decisions but to explain the rationale behind them.
Transparency also combats misinformation or bad information. Misinformation can spread like wildfire when there is an information vacuum. By communicating openly on all operations, from vendor contracts to dispute resolutions, HOA boards can diminish the scope of misinformation. This proactive approach to communication stops rumors before they start and ensures that homeowners have accurate and complete information.
DO: Regularly Communicate with Residents
Open lines of communication create a collaborative atmosphere. What can help you communicate?
- Regular newsletters
- Online resources like a website and social media groups
- Community meetings
- Accessible contact information
Good communication will encourage input and feedback, and it also keeps residents informed of the issues and initiatives that affect their community. HOA board meetings should be open to all association members with schedules and agendas disseminated well in advance. This openness ensures members can participate and contribute their thoughts on community matters.
Maintain comprehensive and accessible records of all HOA operations, from meeting minutes to expense reports. These records should be readily available to association members upon request.
You want to make sure you’re communicating regularly if you want to run a successful HOA.
DON’T: Ignore Maintenance and Repairs
Ignoring or delaying maintenance and repairs can lead to significant problems down the road, not only for the success of your HOA but also for the condition of your community and the properties that are in it.
These issues not only affect the quality of life within the community but can also have legal and financial repercussions for the HOA. Prioritize regular maintenance tasks and address repair needs promptly to maintain the community’s value and residents’ satisfaction. Make sure you have a solid team of vendors, contractors, and service professionals in place so they can respond to repair needs as soon as possible. A broken handrail is a liability issue. Everything must be addressed with a sense of urgency.
DON’T: Overlook Preventative Maintenance
Maintenance keeps the community running smoothly and properties valuable. Establish a schedule for regular, routine, and preventative maintenance and stick to it, ensuring that common areas, amenities, and landscaping are well cared for. Deferred maintenance increases costs down the line and can diminish residents’ quality of life.
When you’re willing to invest in preventative maintenance, you’ll find that you reduce the risk, cost, and frustration of those emergency repair requests.
DO: Foster Community Spirit
The sense of community is often one of the most appealing aspects of HOA-managed neighborhoods. Residents feel like they’re supported and included. When you can, organize social events and communal activities. Something as simple as a monthly potluck or a coffee hour every Saturday morning can give your homeowners an opportunity to get to know one another. There are fewer conflicts and disputes between your residents when you have an inclusive community.
It’s also a good idea to welcome new residents. Successful HOAs will have a full orientation when new homeowners move into the neighborhood. Make sure they feel welcomed and invited to be full members of the community and the association.
A strong community can work wonders for making an HOA thrive.
DON’T: Be Difficult and Inflexible
Rules and regulations are necessary, but an overly rigid approach can stifle the community. Be willing to listen to residents’ concerns and adapt policies when necessary. Flexibility demonstrates responsive leadership.
According to The Community Association Institute, the most controversial aspect of the HOA is the rulemaking. Many see the rules as either too strict or not strict enough. Take a look at this data they’ve gathered based on surveys:
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TOP THREE MOST HATED HOA RULES |
TOP THREE MOST DESIRED HOA RULES |
| Lawn appearance. Boards and management companies can be picky about lawn maintenance. | Improved parking. |
| Parking regulations. The parking rules can be strict. | Stricter noise regulations. |
| Pet restrictions. Many residents are frustrated with pet restrictions. | Rules requiring residents to clean up after pets. |
As you can see, it’s hard to keep everyone happy and meet everyone’s needs. That’s the challenge for boards and management companies that want to be successful.
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DO: Manage Finances Responsibly Sound fiscal management is the backbone of a prosperous HOA. Create comprehensive budgets, plan for future expenses, and build a healthy reserve fund. Financial mismanagement can lead to increased fees and special assessments, which are generally unpopular. |
DO: Provide Value to Members Remember that an HOA exists for its members. Everything you do should aim to enhance the livability, safety, and property values of your community. Provide amenities, services, and governance that contribute to an appealing and functional community. |
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DON’T: Ignore Conflict Resolution Disputes will occur, but having a clear procedure for conflict resolution eases tensions. Address issues promptly, treat all parties involved fairly, and aim for constructive, peaceful solutions. |
DON’T: Overstep Authority Board members should always act within the powers granted by the HOA’s governing documents and laws. Do not exceed your authority or make arbitrary decisions, as doing so can lead to serious concerns or legal action from residents. |
DO Work with HOA Property Management Professionals in Winston-Salem
Managing an HOA successfully can be challenging, and it requires an experienced and objective approach that considers the needs of the board as well as the homeowners throughout the community.
If you’re serving on an HOA board yourself, consider the expertise and the automation that a professional management company can provide. If you’re not already working with an HOA management company, we strongly recommend that you begin. This is perhaps the most important resource in running a successful HOA.
- Why Work with an HOA Management Company in Winston-Salem?
Most of the HOA boards in Winston-Salem and throughout North Carolina are self-managed by volunteer members of the community. This requires a lot of time, and it can also put you in an awkward position with your neighbors. You’re responsible for enforcing the rules and regulations of the association.
HOA boards have a lot of authority and a lot of responsibility. That can be stressful. It can be difficult to prioritize everything that needs to be done, and delegating to your experienced HOA management partner can be a huge relief. If you’re not sure about all the work that’s required or you’re busy putting out fires every day, you could find yourself unprepared for the meetings, correspondence, financial oversight, and maintenance that’s necessary to keep an HOA running smoothly and successfully.
A management company provides some breathing room for HOA board members, in addition to the experience and the resources that your community needs.
- Benefits of HOA Property Management
A professional property management company that works with HOAs can provide a number of advantages. We offer solutions, tools, resources, and technology that can help you solve some of the major problems that have faced your community for years or that may be recent, thanks to the changing market dynamic and the local economic picture.
When you work with an experienced management company that has helped HOAs like yours, you can count on them knowing the current industry trends and best practices. Keeping up with these innovative methods for handling complaints and demands can really improve your HOA’s relationship with homeowners in the community.
- Professional Management Improves HOA Communication
Communication is more important than ever in homeowner associations. Volunteer HOA board members often find themselves struggling to find the right way to communicate with homeowners. Your management company can facilitate smooth communication, making your board more responsive and your homeowners more receptive.
In addition to more organized and consistent messaging, you can count on a professional association management company to provide the technology that facilitates better communication. You’ll see this in everything from financial reports to online documentation and social media platforms. It’s a better way for your HOA to do business.
- Leverage Vendor Relationships and Community Maintenance
Your property management company can share the good relationships that they have with outside vendors. This often results in lower rates for your HOA when it comes to insurance, lawn maintenance, general contracting, and other maintenance work.
Property and association managers work closely with these preferred vendors to ensure there’s a high quality of work that’s done on time and for less money than you’d have to pay an outside contractor who you’ve never worked with before.
- Financial Oversight and Guidance
Property managers can also assist your HOA with financial management. Most association management companies have years of experience collecting dues and fines and assisting with the development of a yearly budget. Your property manager can help you manage that budget and assist with the establishment of reserve accounts and long term capital plans to benefit your community.
- Assistance with Enforcing HOA Rules
Professional association management also delivers rules enforcement. Expect regular inspections and homeowner notifications when they’re out of compliance with the rules and regulations. We follow up with any notices that were served or fines that were levied. It’s easier for a third party to do this. If you’re serving on the board, you don’t want to confront your neighbors when there’s a violation to address.
Your property manager can also be a huge asset when it comes to legal representation. Property management companies work with attorneys in multiple different areas, so we can help your association hire the right expert if there’s a contract dispute, collection matter, or other legal issues to deal with.
- Raising Property and Community Values
Lastly, good association management means that the values in your community are maintained. All of the board’s tasks will be completed in a timely fashion, the common areas will be kept clean and maintained, and the board can be sure they’re in compliance with rules, regulations, and laws. The uniform set of standards will create an enriching living environment for everyone in the community.
The Importance of Ongoing Education for HOA Board Members
A successful HOA provides for ongoing education and professional development for HOA board members. In addition to adhering to local laws and regulations, it is important for HOA board members to continuously educate themselves on best practices and industry standards. This can include attending workshops and conferences, staying up to date on new laws and regulations, and networking with other HOA board members.
Ongoing education helps ensure that the HOA is well-informed and equipped to make wise decisions for the community.
Create a Sustainable and Diverse Community
As you may have noticed, sustainability is becoming increasingly important in today’s world, and HOAs can play a significant role in promoting sustainable practices within their communities. This can include implementing recycling programs, encouraging energy-efficient practices, and utilizing eco-friendly materials in community projects and renovations. By being mindful of the environment, HOAs can not only reduce their carbon footprint but also save money on long-term maintenance costs.
This will be supported by a lot of homeowners, and you’ll find that you’re also able to keep energy and utility costs lower. Converting to LED light bulbs, for example, could mean that you don’t have to continuously replace those less efficient bulbs every few months or years.
Encouraging diversity and inclusivity is also extremely important in managing a successful and modern HOA. Winston-Salem is a diverse city with residents from various backgrounds and cultures. It is important for HOAs to promote diversity and inclusivity within their communities, creating a welcoming environment for all residents. This can include organizing community events that celebrate different traditions and cultures, promoting open communication and understanding among neighbors, and enforcing fair housing and anti-discrimination policies within the association.
Embrace Technology for Your Winston-Salem HOA
Your homeowners are using apps and online resources to manage just about every part of their lives. In today’s digital age, technology can greatly improve the efficiency and communication within an HOA. Consider utilizing online portals for dues payments and communication, implementing electronic voting systems, and using software to manage community maintenance requests and financial records. Embracing technology can save time, reduce paper waste, and increase transparency within the association.
Running a successful HOA in Winston-Salem requires a delicate balance of strong leadership, clear communication, and community engagement. By following these do’s and don’ts, you can foster a harmonious and well-managed community that residents are proud to call home.
Ensure that you’re not just operating within the best interests of the community, but also with the residents’ best interests at heart. Engage with your community, maintain the shared spaces with care, and manage the association with transparency and efficiency. By doing so, you’ll help create an environment where every resident feels heard, valued, and satisfied.
We can help with all of this. Please contact us at Capstone Realty Consultants. We’d love to talk about making your HOA a huge success.
