While serving as the board member of HOA in Winston Salem is certainly a privilege, it also entails taking up a lot of responsibilities. The board members of the HOA are the trusted members of the community, who are trusted to take fair decisions for the progress of the people and the neighborhood.
While most of the members are aware of their responsibilities and follow the rules of the HOA judiciously, some may accidentally end up committing a mistake at times.
Here are some tips to avoid mistakes while you serve as a board member.
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Read and Abide by the Governing Documents
The duty of a Winston Salem HOA board member primarily is to enforce the rules and regulations that are stated by the government. Hence, it is crucial that you regularly go through the updated government documents and abide by the laws and policies drawn for an HOA member.
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Conduct Meetings Correctly
One of the most common board member mistakes is conducting meetings incorrectly. A lack of fixed procedures for conducting an HOA meeting can create potential issues like accidental discussion of confidential matters outside the meeting. Therefore, it is essential to set a list of official rules and regulations related to the protocols and confidentiality of the meetings.
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Do Not Mismanage Community Funds
Appropriate management of the community funds is the duty and the chief responsibility of the board members. The mismanagement of the funds, such as mixing the funds with an individual’s personal accounts, utilizing funds for personal use, excess or unnecessary utilization of funds, or unfair allocation can lead to a lack of funds for important property management issues. Not only is this a legal violation, but the misappropriation of funds can very easily cause the tenants and residents to lose faith in the HOA board.
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Seek Legal Advice
Many times, when property owners are signing new contracts, have issues with the tenants, or have other residential problems, they might look to the HOA for advice. In such cases, it is essential to seek legal advice for the respective situations and guide the stakeholders accordingly to ensure that the issues are resolved in an appropriate manner.
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Budget for the Future
Maintaining the financial records of the neighborhood and budgeting for the future are some of the key tasks of board members. Improper budgeting can often lead to losses, resulting in misallocation of funds by the HOA. The HOA answers to the people, and their needs must be prioritized at all times. For instance, if painting the community hall is a priority, but the budget is allocated to making new fence gates, it would be a misallocation of the funds and a serious board member mistake.
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Do Not Work Outside of the Board Under Your Own Authority
While the members might have connections within or outside the committee, it is unethical and illegal in many situations to work outside of the board. It is the responsibility of a member to keep the board informed about their decisions and actions related to the HOA. Avoid using confidential information to further personal goals or agendas outside the HOA.
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Do Not Change Policies or Make Decisions Hastily
Some tasks, such as hiring vendors, coming up with a quarterly plan of action, or changing policies, require a dedicated amount of time. These should be done with a common consensus and not with haste. Avoid making rushed decisions that may make you seem like you are favoring a particular vendor or pushing your own agenda.
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Communicate With Your Fellow Board Members and Residents
As a board member, you must be honest and respectful towards your fellow board members and build trust among the residents of the neighborhood with effective, open, and transparent communication. Keep a track of past mistakes and learn from them to avoid making common board member mistakes in the future.
These tips can help you at every step of your journey as a board member. At Capstone Realty Consultants, we have extensive knowledge of the Winston Salem real estate market and provide a detailed understanding of how HOA boards work. For more information and practical tips on avoiding common HOA mistakes, connect with us at Capstone Realty Consultants.