The Homeowners Association (HOA) is a body formed by a group of neighbors that manage a property and shared areas in a neighborhood. The HOA chooses a board of directors that create conditions and rules that govern the homeowners and ensures that all the characteristics of a particular community are maintained. This may include managing common areas such as the roads, pools, and parks. Homeowners are required to live by the set conditions and restrictions outlined.
HOA management companies, on the other hand, are hired experts that have vast experience, training and are knowledgeable. They have quite a lot of responsibilities such as helping with finances, collecting dues and making the best business decisions. Are HOA management companies important? This is a question most HOA ask.
HOA Management Companies Help with Achieving a Higher ROI
Every activity that you carry out in real estate should always focus on increasing the Returns on Investments (ROI). The Return on Investments in a property is the measure of profitability that is evaluated by the performance of an asset.
Did you know that HOA management companies can increase the ROI of a property? HOA management companies aim at conducting their roles with an interest on expanding the property value of the HOA. Here are some of the ways that professional HOA management companies can help you increase your ROI:
Collecting Dues and Fines on Violations
Experienced HOA management companies will ensure that the rent is paid on time. The HOA management companies also collect the set fees that facilitate continuous maintenance of your property. This will save you from routine repairs that are costly, and that add to expenses.
As previously mentioned, the HOA is made up of a group of homeowners. At times, some of the residents will violate the set rules and this is when HOA management companies help with collecting fines and taking the necessary legal measures. These actions will prevent you from receiving complaints from homeowners over a particular resident being favored. Collecting fines serve to deter residents from activities that would attract fines.
Once in a while, the architecture, flower beds or parking spaces need to be modified. HOA management companies manage facility and property repairs and save you the effort of taking on common improvements. Your time is valuable and better spent outsourcing the work that should be carried out on your property.
Every day there is a possibility of a property going unrented. An unrented apartment means that there is a loss of revenue for you. You can entrust your HOA management company to attract the right resident and get them to lease a property quickly. This results in a higher ROI in the long-run.
Handling Problems that Arise
It is essential that you understand the laws that govern your property. HOA management companies conduct thorough screening to choose the qualified residents for a property. However, sometimes problems arise and HOA management companies may need to evict your tenants.
HOA management companies also keep records to protect you from tenants that may sue you for various reasons such as evictions.
Your HOA management company does not set the rules that govern your property, however, they do implement them and make sure they are followed. From finances to leadership, to meet the set ROI, you need to seek an expert from the many HOA management companies that have these broad skills. They will make sure that everything is in place.
Contact RS Fincher today
Running an HOA community is no simple task and you shouldn’t have to do it alone. RS Fincher is proud to support local Raleigh HOAs run their communities with a comprehensive list of services. These include everything from bookkeeping, accounting, and financial reporting to managing service requests and overseeing board meetings. We will work closely with the board president and board members to understand what goals the community has, then do everything we can to help you reach them quickly and affordably. If you have any questions or you’re ready to get started, request a proposal today.