How can an HOA software help with accounts receivable?

With an HOA software, you can manage multiple communities, customize assessments and fees, save time through automated processes, make collections and follow-ups easy, generate reports quickly, and take advantage of an integrated accounting system.

What is the best property management software?

When deciding on which software to use, it is essential to examine the features and functions each prospect offers. Some of the best commercial property management software come with a complete set of tools and features, such as: accounting tools, analytics and reporting tools, automatic alerts, budgeting, communication tools, maintenance management, mobile applications, online payment processing, online user portals, scheduling tools, and third-party integrations.

What are the features of a good commercial property management software?

Some of the best commercial property management software come with a complete set of tools and features, such as: accounting tools, analytics and reporting tools, automatic alerts, budgeting, communication tools, maintenance management, mobile applications, online payment processing, online user portals, scheduling tools, and third-party integrations.

What are the benefits of a commercial property management software?

With an end-to-end commercial property management software, you can expect fewer errors or loss of data, automated tenant management, streamlined and faster cycle times, more efficient financial management, and easy access to KPIs and reporting. Plus, it is a more sustainable alternative to manual or disjointed processes.

How does HOA software make billing and payment processing easier?

HOA billing and payment processing have many benefits. It provides homeowners with more convenient payment options, allows for easier payment tracking, automates the HOA billing process, has full-service accounting features, and provides real-time financial reporting. It is also easy to use and compatible across different devices.

How can an HOA management software help you keep up with service requests?

An HOA management software is an all-in-one solution that can help you streamline processing, achieve a faster response rate, simplify actions with the use of commands, restrict user access, keep your data secure, and monitor performance. It is convenient and scalable, too.

What are the benefits of HOA management software?

With management software, your self-managed HOA can streamline various processes, digitize records and communications, track requests efficiently, and generate real-time accounting and financial reports. Additionally, software is both eco-friendly and cost-efficient.

What are the reasons to levy HOA special assessments?

An HOA may decide to levy a special assessment to cover inadequate budgets, to defray the costs of capital improvement projects, to cover insufficient insurance, to replenish reserves, and other reasons deemed appropriate by the board.

admin, Author at HOA Management Software

How Can Association Management Software Help With Accounts Receivable?

admin on November 13, 2020

Although homeowners associations are non-profit organizations, they still earn money for the purpose of maintaining the community. Keep up with your HOA accounts receivable with the help of an association management software.

What Are HOA Accounts Receivable?

A homeowners association receives money from its members in the form of regular dues or fees. The association treats this as revenues, which are then used to fund the various expenses within the community. Not all of these revenues are received at once, though. This is what is referred to as HOA accounts receivable.

Simply put, accounts receivable are money the association expects to receive. It is money that debtors owe to the HOA. This can take many forms. As explained in the previous paragraph, it can be the regular dues that homeowners owe to the association. It can also take the form of fees or monetary fines that homeowners incur as a result of violating covenants or rules.

Other times, an association’s accounts receivable can come from vendors issuing refunds. If an HOA undergoes litigation with a homeowner or vendor, any monetary damages the association expects to receive as a result can also be considered as accounts receivable.

Benefits of an HOA Software

While some homeowners associations can manage their receivables manually, there are many advantages to switching to a digital platform. In addition to other benefits such as work order management and homeowner communication, here is how an HOA software can help your association with HOA accounts receivable:

1. Manage Multiple Communities

HOA boards are usually responsible for looking after their own community, but that is not the case with management companies. Association management companies typically handle multiple communities at a time.

With so much on their plate, it can be difficult to track which receivables belong to which community. Additionally, every community has its own set of rules and payment guidelines.

With HOA software, management companies can juggle multiple accounts simultaneously. Separating communities into profiles makes it easier to stay on top of accounts receivables as well as other items.

2. Customize HOA Assessments and Fees

It is not unusual for regular assessment amounts to vary each year. A surplus in the budget for one year could affect the following year’s budget.

Rising labor rates, inflation, and a number of other factors can also influence how much an HOA charges in fees or the need for special assessments. Moreover, some associations do not charge a flat rate across all members. Some homeowners may pay more depending on the size of their unit.

This constant change can make things confusing when recording assessments manually. Plus, extra fees like pet fees and violation fees can further complicate the matter.

An HOA software, though, can simplify the process by allowing customization of fees and assessments. You can designate a profile for each homeowner and modify the charges as you see fit.

3. Save Time Through Automated Processes

It is no secret that technology has helped streamline many of our modern-day processes. The same applies to HOA accounts receivables. Manual processes can take up so much of your time — time better spent on more important issues plaguing your community. Additionally, a manual approach has more room for error.

An HOA software comes with fully automated features that can save you both time and money. You can pull up and print out statements of accounts for each homeowner with ease.

You can send out reminders for upcoming or overdue receivables. Most programs come integrated with calendars that you can use to schedule reminders so that they go out on their own at the appropriate time.

Management companies, in particular, can significantly benefit from automation. When you handle a multitude of associations and communities, the ability to process account statements and send reminders in large batches become a necessity.

4. Make Collections and Follow-Ups Easy

Perhaps one of the most tedious jobs associated with accounts receivables is the collection. Even though you send out timely reminders, some homeowners just miss deadlines either accidentally or intentionally.

With the help of an HOA software, you can keep track of these overdue accounts receivables in one neat place. Monitor how long payments have gone unpaid for each homeowner. You can also send follow-up reminders to homeowners who have yet to settle their balances.

In addition to this, you can also keep tabs on debtors who have settled payments with the association. For example, if a homeowner pays their association dues, you can log this information into the program immediately. Most programs even allow you to attach supporting photos and documents (such as deposit slips), making it easy for you to cross-reference payments.

5. Generate Reports Quickly

Accounting will always remain a part of association management. That means preparing various accounting reports, such as income statements, balance sheets, and the like.

When it comes to accounts receivables, the associated report is the HOA statement of receivables.

Preparing the HOA statement of receivables is no easy task. If you have no prior experience or familiarity with this statement, you will find it fairly difficult to create or understand one.

An association management software, though, does the job for you. With technological help, you can generate a statement of receivables for any time period and learn how much the association is owed in one fell swoop.

A statement of receivables also usually comes with aging information. This will help you determine which overdue accounts have gone past 30, 60, and even 90 days.

6. Integrated Accounting System

Association management software offers fully integrated accounting solutions that comply with Generally Accepted Accounting Principles (GAAP). On top of keeping track of your HOA accounts receivable, an HOA software can help you with other accounting problems, too. This includes managing your HOA accounts payable, which are amounts and payments your association owes to other parties.

Efficiency Beyond Manual Solutions

Managing HOA accounts receivable can come as a challenge, especially for large associations or management companies with plenty of clients. When done improperly, accounts can get mixed up and overdue amounts may go uncollected. With an HOA software, though, you can say goodbye to endless hours of perusing through books and statements.

If your association or management company requires help handling accounts receivable, Condo Manager offers a fully integrated HOA software. Reach out to us today to learn more!

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Can A Commercial Property Management Software Help You?

admin on November 2, 2020

Managing commercial properties is no longer an easy task when done manually. Commercial property owners find themselves needing to adjust to an ever-evolving technological landscape. And, for that, you must turn to commercial property management software.

Understanding Commercial Property Management Software

The road to successful commercial property management is paved with many difficulties and hindrances. In order to overcome these challenges, you must be equipped with the proper tools. One of these tools is a commercial property management system.

Simply put, a commercial property management software helps you accomplish various day-to-day tasks and operations through automation in a digital platform.

This kind of system enables property managers and owners like you to streamline processes, such as the collection of payments, maintenance tracking, and the like. It is designed for a wide range of commercial properties, including retail spaces and office buildings.

Benefits of a Comprehensive Property Management Software

If you remain unconvinced about the value a property management software can bring you, here are the benefits of investing in an end-to-end system:

1. Fewer Errors or Lost Data

Before the advent of software, commercial property managers and owners used to rely on manual processes. With the introduction of technological developments, a shift soon began.

More and more property managers started to adopt the use of multiple platforms. And while this helped digitize and automate some of the management processes, it still stands inferior to an end-to-end management system.

A comprehensive commercial property management software provides you with all the features you need. It takes elements from multiple platforms and combines them into a single, all-inclusive system.

Because you have everything you need in one place, it reduces the risk of errors. It also eliminates the chance of lost data stemming from transferring data sets across different platforms.

2. Automated Tenant Management

Good tenants are not all that hard to come by — they just take more effort to find and land. If you want your vacant commercial spaces to be occupied by quality tenants, a property management software can help.

Comprehensive digital platforms typically have tenant management functions in place. This functionality allows you to manage tenants from the screening process all the way through communicating with them and tracking their maintenance requests.

3. Streamlined and Faster Cycle Times

You know what they say, “time is money.” That saying rings especially true for businesses. Manual or disjointed processes are not only susceptible to errors and loss of data, they are also more time-consuming. Plus, the time you spend on management multiplies as you acquire more commercial properties.

When you switch over to a computerized system, you can save a significant amount of time. Furthermore, when these systems are connected in an end-to-end management software, you can streamline processes and make way for faster cycle times.

You also eliminate the need for you to run from one property to another. An all-in-one automated system will allow you to manage multiple properties simultaneously right from your computer.

4. More Efficient Financial Management

Perhaps one of the most difficult aspects of managing a commercial property is getting a handle on your finances. The main purpose of a business is to earn money, But it is not always easy to improve your cash flow, particularly when you have a lot of commercial properties you need to juggle.

With a commercial property management program, you can look forward to more efficient and effective financial management. You can use technology to your advantage, accomplishing tasks ranging from automated billing to processing payments electronically.

Accounting tools and functions will also make it simpler to get your finances in order. With such an asset on your side, you can pinpoint problem areas, keep costs low, and maximize your profitability.

5. Easy Access to KPIs and Reporting

A large pitfall of a manual or disjointed system is the lack of reporting and data analytics. So much of the business landscape revolves around the ability to obtain key statistics instantly. Let’s face it — no one has time to ruffle through past data records just to analyze them.

This is where a property management software can help. With an automated and digitized system, you can promptly retrieve data for analysis and even generate reports on the spot. You can even set parameters according to a number of filters, such as date ranges and tenant types. Then, you can use the insight you gain from this data to inform your future business and financial decisions.

6. A Sustainable Alternative

Automation is all well and good, but an important yet often overlooked advantage of a property management software is sustainability. It is, now more than ever, glaringly clear that the world is experiencing a shift in favor of greener solutions. Younger generations, in particular, are more inclined to partner or work with companies that advocate and practice sustainability.

A management software does not only save time and money, but it also has a significantly lower carbon footprint. It supports environmental sustainability in a number of realms, including invoice processing, tenant and vendor management, and maintenance requests.

Features to Look for in a Commercial Property Software

When deciding on which software to use, it is essential to examine the features and functions each prospect offers.

Some of the best commercial property management software come with a complete set of tools and features, such as:

Accounting Tools. Every transaction creates an accounting entry that goes straight to the general ledger and allows you to generate financial statements in real-time.
Analytics and Reporting Tools. Organized and categorized data can help property managers and owners analyze the performance of the business.
Automatic Alerts. A feature that automatically notifies you of important events and tasks can serve you well. You can also set it up to send automated reminders to tenants.
Budgeting. A budget module can help you keep track of your expenses and make sure you do not go over the set amount for each item during the time period.
Communication Tools. It is always a plus to have built-in communication tools such as emails and text messages.
Maintenance Management. Commercial properties require regular maintenance. Stay on top of maintenance requests, work orders, and quotations with a helpful maintenance management feature.
Mobile Applications. You are not always glued to your computer, and neither are your tenants. A mobile application for your property management software gives you access to your system on the go.
Online Payment Processing. With this feature, tenants can electronically send you payments for rent or other fees.
Online User Portal. An online portal will allow users (tenants and property owners) to access important information and financials without fear of viewing or tampering with confidential data.
Scheduling Tools. A calendar and scheduling tool can help you stay on track of events and tasks.
Third-Party Integrations. Your management software should be third-party integration-ready for seamless program-to-program functionality.

The Price of a Commercial Property Management Software

Management software for commercial properties can vary in cost depending on the developer or provider and your specific needs. Non-enterprise systems can run between $5,000 to $10,000 annually. Generally speaking, though, if you have more properties or units to manage, you should expect the price to go up along with it.

While the cost of investing in such software can definitely sway your decision, you must remember that its benefits far outweigh the price. Additionally, many cheaper alternatives exist, although they do not typically come with extensive management tools.

A Step into the Future

Property managers and owners alike will benefit greatly from a commercial property management software. An end-to-end automated system offers many features that can lighten your workload, reduce errors or loss of data, and streamline processes. All you need to do is take that first step.

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HOA Billing And Payment Processing Made Easier With HOA Software

admin on August 7, 2020

Managing a condo or homeowners association is very time-consuming. Board members must be able to balance complex responsibilities including accounting, billing, and payment processing. Thankfully, there are HOA software programs that automate a lot of these responsibilities — resulting in more efficient day-to-day operations. If you’re interested in HOA billing and payment processing software, here’s what you need to know.

Maximize Efficiency with HOA Billing and Payment Processing Software

The latest advancements in technology have allowed community association management to evolve. Gone are the days when board members or managers had to file paperwork into cabinets, send notices by snail mail, or sit by the phone to await calls from homeowners. Today, HOA software has become the norm as it accomplishes the same tasks — but with increased efficiency, less operational expenses, and less effort.

If you’re interested in automating your association’s day-to-day operations, HOA billing and payment processing is a great place to start. Here are the benefits of having HOA software.

1. More Convenient Payment Options for Homeowners

With HOA payment processing software, homeowners can settle their monthly or quarterly dues online. This is much more convenient than having to physically hand over cash payments to the association or deposit checks to the bank. Homeowners also have more payment options such as credit cards, debit cards, or e-checks. As an added benefit, the convenience of online payment can also increase on-time payments from homeowners.

2. Easier Payment Tracking

The HOA software payment processing feature means easier tracking for board members or managers. Since most payments are made online, you can use the software to track which homeowners have settled their accounts and which haven’t. Having digital records of financial transactions will make financial tasks such as accounting and bookkeeping much easier as well.

3. Automated HOA Software Billing

HOA billing is one of the most important tasks of an association. There are also many components such as HOA utility billing and HOA fee billing. If these tasks are done manually, they can take up most — if not all — of your time. HOA software can automate the billing process and make it more convenient for board members. Even if your community continues to welcome new members, the association won’t struggle with the billing process. With HOA software, you can also automatically send invoices and notices to the entire community.

4. Accurate and Full-Service Accounting Features

HOA software will have all the accounting functions you will ever need. You no longer have to switch between different programs, which can increase accounting errors or emissions. Associations can also easily modify or reverse transactions for more accurate accounting. Boards can be more efficient since accounts payable, accounts receivable, and other important financial documents can be found in one place.

5. Real-Time Financial Reporting

HOA software will automatically update your accounts based on money coming in and out. Thus, associations can create real-time financial reports whenever they need it. You can easily customize reports with cover pages and other available templates. These reports also present financial information clearly and simply. It will be easy for board members to understand.

6. Simple and Easy-to-Use Interface

A lot of associations are hesitant to use HOA software because it sounds complicated to use. However, this software is specifically designed for associations. Thus, it is very simple and easy to use. The interface is very intuitive so both board members and homeowners alike will not have a hard time navigating through the different features. Moreover, HOA software comes with a support team that can assist you with whatever you need.

7. Mobile Compatibility

One of the best things about HOA software is that you can access it anywhere and anytime. As long as you have an internet connection, you can use your desktop, laptop, tablet, or smartphone. Board members can continue to monitor the association even if they are outside the office.

Likewise, homeowners no longer have to call or email the association in order to access important information. They can simply log on to the website portal and find the documents they are looking for.

HOA Billing and Payment Processing Software Makes Community Association Management Easier

HOA billing and payment processing software is a worthwhile investment for any association. With HOA software, benefits like increased efficiency and productivity far outweigh the costs. HOA board members can become more effective because of the automation of time-consuming tasks such as accounting and billing. Homeowners can also benefit from more convenient payment options and 24/7 access to important documents.

Investing in HOA billing and payment processing also makes your community future-proof. It can stay competitive with other communities and continuously attract more homebuyers. If you have further questions, feel free to contact the Condo Manager team today!

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How Can A HOA Management Software Keep Up With Service Requests

admin on July 17, 2020

One of the duties of HOA boards and management companies is to oversee and respond to service requests from homeowners. Over time, requests and work orders begin to pile up, and manual processing no longer seems realistic.

Track Your Service Requests Better With HOA Management Software

In a homeowners or condominium association, residents make all kinds of requests all the time. From maintenance requests to architectural requests, board members must manage and respond to these requests in a timely manner. As associations grow larger, though, service requests can start to pour in by the hundreds. The same goes for HOA management companies with multiple associations under their supervision.

When you have a lot of homeowners to please, you must avoid delays and unresponsiveness, especially when it comes to emergency requests. Thankfully, technological advancements have made it possible to simplify service request management.

Today, community associations and management companies can purchase HOA management software as an all-around tool. This typically comes with a diverse set of modules, such as a Violations and Architectural Request module, designed to make processes more efficient.

Here are the ways an HOA management software can help you keep up with service requests:

1. All-in-One Location

Traditional processes rely on physical copies of request forms, usually filed or submitted manually. This setup, though, requires you to sort through multiple forms and documents. It also carries the risk of misplacing forms, especially if you lack a good filing system.

When you invest in HOA management software, you can access all the service requests in one neat location. With a few simple clicks of your mouse, you can also sort orders by date, name, nature, or sender. Best of all, you can look for specific documents using a search function.

You can choose to put your system in the cloud or limit it to your network. Either way, a single location for all your service requests makes for easy access. Somehow, it is also much easier to manage work orders when they come in digital form rather than piles of paperwork.

2. Streamline Processing

When it comes to processing, manual setups usually require a team of people, each one with a specified task. As forms get passed around from one person to another, they can easily get lost in the hubbub.

Before long, homeowners will be following up on the status of their request, and you either have to look for the form in a sea of records or ask the homeowner to file another request at the risk of igniting their wrath. Worse yet, you will start pointing fingers as to who is responsible for the loss.

With an HOA management system, though, you can process service requests like a well-oiled machine. A typical work orders module will allow you to assign requests to individuals and even has an audit trail to pinpoint who exactly touched the request last. It is an asset to all self-managed HOAs.

3. Faster Response Rate

A more streamlined process will naturally lead to increased efficiency and a faster turnaround. With the help of an HOA management program, you can search, review, approve, or deny requests at a quicker rate. Most systems even come with email integration so that you can send work orders to vendors and reply to homeowners without leaving your seat. Plus, a faster response time equates to happier residents.

4. Simplified Actions With the Use of Commands

How many times have you come across the same request from different homeowners? Manual processing requires you to staple them all together. But, with HOA management software, you can merge similar tickets with ease.

This will allow you to declutter your Inbox and free up some storage space without needing to delete any requests. All requesting homeowners will still be attached to the ticket, so you don’t have to worry about leaving anyone out. A lot of systems also allow you to duplicate requests if the need arises.

5. User Access Control

You may have a number of people using the same software for different purposes. The beauty of going digital is that you can restrict user access so that only individuals with clearance can manage certain modules.

Those responsible for tracking and managing service requests can be limited to just that module. This way, they can’t obtain or view any sensitive information.

6. Data Security

The problem with physical request forms is the risk of getting lost or blemished. With the world moving to a largely digital format, the problem now lies with privacy, security, and data loss.

Modern problems require modern solutions. Whether you put your system in the cloud or restrict it to a local network, performing backups is generally painless. Some programs can even execute automatic backups at fixed times. In terms of privacy and security, software developers make sure to place security protocols, such as SSL encryption, to protect your information. Password protection is also a standard.

7. Assess Performance

The best way to improve your process is to take a step back and review the statistics. This is nearly impossible with manual setup unless you are meticulous enough to time how long it takes for each service request to get processed. A digital approach, on the other hand, makes it easier to measure performance. Using management software, you can pinpoint areas of improvement, minimize delays, and optimize your system.

8. Convenience

Arguably the biggest selling point of a digital system is convenience. Gone are the days of filling out handwritten or printed forms and then sending them through mail or email. An HOA management software allows homeowners to send service requests directly to your inbox. Some programs even let you attach photos as supporting documents.

9. Scalable

A chief concern among homeowners associations is how to scale their processes as the community grows. More new homeowners mean more service requests. Before you know it, you will find yourself buried in a mountain of paperwork. The beauty of HOA management software is that it is expansion-ready. The only real change you need to make is adding more user accounts to the homeowner online portal.

The Future Is Digital

Answering and addressing service requests is a primary responsibility of HOA boards and management companies. The job can come as a challenge, though, if you continue to use traditional methods. Step into the modern world and make life much easier with HOA management software.

While you can buy separate modules with distinct functions and attempt to stitch them together yourself, it is much better to invest in an all-around HOA management system. This is where Condo Manager comes in. Call us at 800-626-1267 to learn more about our software or fill out an online form to schedule a free demo of our product.

5 Benefits of a Homeowner Online Portal

admin on June 30, 2020

Modern-day technology has allowed for a myriad of advancements in the condo and HOA management sphere. One such advancement is a homeowner online portal, a tool that has made leaps and bounds in helping associations everywhere.

What Are the Benefits of a Homeowner Online Portal?

Technology has come a long way in the last 30 years and has changed our lives in a major way. In fact, the past decade alone saw progress in various fields such as cloud computing, artificial intelligence, and virtual reality.

Social media is ubiquitous, a fixed presence in the online world. Businesses rely on technology now more than ever, and community associations are no exception.

Homeowners and condominium associations have largely depended on manual processes and physical copies of documents. The advent of online portals, HOA software, and websites, though, has made a huge difference in the way these associations are managed.

Making the switch can feel daunting, especially for an association that has primarily employed a traditional system. But, a homeowner website portal does pose many advantages. If you are hesitant to transition to a digital format, here are some benefits of a homeowner online portal to convince you:

1. Convenience

One of the most obvious benefits of homeowner online accounts is convenience. Setting up an online portal where homeowners can access various information is useful for all parties involved — HOA management, board members, and homeowners.

By simply logging on to their accounts, homeowners can view their ledger and account balance as well as manage their contact details. No more jumping through hoops and submitting a sundry of request letters. All you need is a stable internet connection, and everything is just a few clicks away.

2. Security

It is only natural for homeowners and HOA managers to feel concerned about privacy and security. There are so many horror stories about software and websites getting hacked, with personal data leaking. However, these kinds of stores are few and far between.

In truth, homeowner online portals and websites are very secure. Developers put in a lot of work to create security protocols and privacy measures, such an SSL encryption, that will safeguard user information. Servers also typically have numerous firewalls and off-site backup drives to protect end-users. Additionally, accessing such online portals will require homeowners to input a user ID and password that are unique to each user.

3. Control Information

The ability to control information is a chief concern among HOA management companies. Such companies usually have multiple clients, with every user having their own homeowner online account. The beauty of an online portal is that the HOA management company can adjust its settings and set which information to publish for all owners to see.

There is also a function that allows the company to specify which items are for managers only, board members only, or for everyone. That means, if something is confidential (like a delinquency report), the company can hide it from homeowner accounts and leave it open for managers and board members only.

4. Make Dues Payment a Breeze

How many times have associations fallen short on income because homeowners forgot to pay their dues? A homeowner’s online portal gets rid of the middleman and streamlines the assessment collection/payment process.

Homeowners can simply log on to their accounts and settle their fees with a few clicks. This will greatly lower the delinquency rate in an association and increase homeowner engagement, to boot.

5. Lighten the Load of HOA Management

Managing an association is no joke. It involves a lot of time, hard work, and patience. With the use of a homeowner online portal, though, HOA management can look forward to a lighter load.

Aside from effortless dues collection, a website can make communication easier, improving the relationship between the homeowners and management. Moreover, since homeowners now have access to everything they need, such as personal data and association documents, this equates to fewer phone calls and emails requesting for such information.

Connecting Homeowner Accounts With HOA Management Software

A homeowner online portal is beneficial for both the association and the HOA management company. However, it is not a complete package. For that, you will need an HOA management software that comes with all the bells and whistles, such as report generation, accounting, and processing of receivables and payables.

It is a good idea to connect homeowner online accounts directly to the HOA software. This way, management can streamline processes and close the gap between the two programs. You can painlessly send information from one software to the other.

Not all developers offer both programs, though. Some associations or management companies utilize an online portal from one developer and management software from another. However, there are developers that offer both programs, making it easier to integrate the two.

Educate Homeowners on the Online Account Portal

While homeowner portals do provide plenty of advantages, they are virtually useless without proper education. An association or HOA management company that opts to use a website or portal should take the necessary steps to teach all community members how to use it.

Some homeowners may be able to teach themselves, but not everyone has a sufficient understanding of the way technology works, especially the older demographic.

To make sure the investment does not go to waste, it is important to guide your homeowners to learn how to use the online portal. This means scheduling training sessions, creating an educational video, and handing out pamphlets with detailed instructions. Associations can even distribute these instructions via the community newsletter. The effort will pay off in the end.

The Bottom Line

From convenience and security to making administrative work a breeze, the benefits of a homeowner online portal are clear. Both the association’s members and HOA management companies can gain from the use of such portals. Apart from practicality, online portals and websites add to customer retention for HOA management companies and homeowner satisfaction for HOA boards.

If your association or HOA management company requires an effective and reliable homeowner online portal, Condo Manager has everything you need. Call us at 800-626-1267 to learn more about our services. Alternatively, you can fill out an online form or schedule a free demo of our product.

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9 Non-Negotiable HOA Software Features

admin on June 16, 2020

HOA software is an essential tool that helps associations become more efficient. Since there are a lot of options to choose from, it can be difficult to determine the best HOA software for your community. To aid in your search, here are nine non-negotiable HOA software features to look out for.

HOA Software Features: Why Do You Need Them?

HOA board members know that it is not easy to manage a community. Apart from dealing with complex tasks such as common area maintenance and financial management, there are countless administrative tasks that eat up most of your time. For instance, it takes a lot of time and effort to manually look up association records, process homeowner requests, deposit checks to the bank, send mail to the post office, and so on.

It’s important to remember that HOA board members are volunteer positions. Board members have full-time jobs and other responsibilities too. They cannot spend all their time dealing with association tasks. This is where HOA software comes in.

HOA software is a digital tool that will eliminate most — if not all — of the manual administrative tasks. Depending on your homeowners association software features, it’s possible to accomplish all of the essential administrative tasks in one place. This will streamline your association’s processes and make it more efficient. Board members will not only be able to save time but having HOA software can be cost-effective for the HOA as well.

As a board member, you have a lot of HOA software options to choose from. Some are all-in-one systems, which serve most associations’ general needs. Meanwhile, there are also specialized HOA software that can cater to the specific needs of your community. Regardless of which option you choose, there are some features of HOA software that are non-negotiable.

9 Must-Have HOA Software Features

HOA software is a major investment so it’s important to pick the best one for your community. Before you make your final choice, though, make sure that it has these nine must-have HOA software features.

1. Accounting and Bookkeeping

Keeping track of finances is one of the most complex and time-consuming aspects of managing an HOA. Proper financial management is also key to the success of your community.
Having an accounting and bookkeeping feature in your HOA software means that you no longer have to manually keep track of all the financial documents.

Since everything is uploaded to the system, it will only take you seconds to pull up the documents you need. A digital general ledger also makes it easier to keep track of all the money coming in and out of your accounts.

2. Financial Reporting

A financial reporting feature should go hand in hand with the accounting and bookkeeping feature. HOA software should allow you to create financial reports whenever you need them. Make sure that your software can create both simplified reports, which homeowners can easily understand, as well as comprehensive reports with graphs and charts to help the HOA board when making important financial decisions.

3. HOA Member Portal

HOA software should also make your homeowners’ life easier. With a member portal and log-in feature, homeowners can access their own accounts. They can keep track of assessments and overdue payments, make amenity reservations, and access the community’s governing documents. Since everything is available on the system, homeowners are less likely to call the HOA office. Fewer phone calls will free up a lot of the HOA boards’ time.

4. HOA Resident Database

An online resident database is also a must-have HOA software feature. The system will keep track of all homeowners and their personal information. When assisting homeowners with their requests, the HOA will be able to pull up their records quickly. Thus, communication with homeowners is faster and more efficient.

5. Online Payment System and Bank Integration

An online payment system is more convenient for both the HOA and the homeowners. You can automate the invoicing process, which means less expenditure on office supplies and postage costs. Meanwhile, homeowners can easily pay their monthly assessments from the comforts of their own homes. Since the payment process is more convenient, it can also help decrease delinquencies in your community.

Then, with a bank integration feature, all payments will go directly to your account. You no longer have to personally deposit the checks to the bank each month.

6. Maintenance Management

Make sure to choose HOA software that has a maintenance management feature. Since maintenance tasks entail a lot of scheduling and monitoring, this feature will be able to save you a lot of time. The HOA will be able to track all the maintenance requests, work orders, and vendor payments.

7. Violation Tracking

Depending on your governing documents, violation letters should still be sent to homeowners via certified mail. However, HOA software with a violation tracking feature will still be very helpful. If you have a large community, you might have numerous violations at any given time. With this feature, you can easily monitor homeowners’ violations. You’ll also know which homeowners have been sent notices and which ones have not.

8. Communications and Events Platform

Sending newsletters and posting announcements is time-consuming and labor-intensive. You can save a lot of resources by having a communications and events platform integrated into your HOA software. The HOA can communicate with homeowners through the system. You can update homeowners on upcoming events — whether it’s a social gathering or a board meeting — which can help increase attendance and participation.

9. Mobile Compatibility

Mobile compatibility is an important HOA software feature. Even if you are out of the office and far from a computer, you will still be able to accomplish important community management tasks. Homeowners will also be able to access all the information they need through their smartphones or other mobile devices.

Additional Considerations for HOA Software Features

Apart from the nine non-negotiable features, here are the other things you may want to have in your HOA software.

Simple and Clean Interface — Your HOA software should be intuitive and easy to use. It won’t matter if you have the most comprehensive HOA software if you cannot use it properly.
Versatile and Customizable — Your community’s needs today might be different tomorrow. Make sure to choose HOA software that can adapt as your community grows.
A Secure, Cloud-Based System — Since the HOA software will host all the important community documents you need to make sure that the system is secure. A cloud-based system also allows you to recover important data even if your computer hardware malfunctions.
Specialized Features — Your community may have additional management needs that can only be addressed by specialized HOA software.

HOA Software Features to Secure Your Community’s Success

A community’s success will depend on how the HOA is able to manage its finances and operations. Many HOA communities only realize this after they have made major missteps in their operations. HOA software is a big investment but it can make community management much easier and more efficient. As a result, the HOA board members have more time to focus on their tasks and responsibilities. As long as you consider these nine non-negotiable HOA software features, you’ll be able to choose the best one for your community.

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Management Software For Self-Managed HOAs: How Can It Help?

admin on June 3, 2020

Many homeowners associations across the country choose self-management over hiring professional services. This can prove difficult as the association grows bigger and more tasks start piling up. If that situation sounds all too familiar to you, consider getting software for self-managed HOA communities.

Benefits of Software for Self-Managed HOA Communities

It is easy to dismiss self-managed HOA software in favor of doing things the traditional way. But, with the ever-evolving landscape of technology, self-managed HOAs can quickly fall behind. One of the primary benefits of hiring a professional management company is access to the latest tools and software. Though, there is also software for self-managed HOA communities, specifically designed to fit their needs and make the board’s jobs easier.

Still on the fence? Take a look at the many benefits of getting software for self-managed HOA communities:

1. Access to Association Records Anytime

With using a program, you no longer need to flip through hundreds of physical records to find the one you are looking for. All you need to do is type in the record’s filename and locate it with just the click of a button.

If you have got a printer hooked up, you can print out multiple copies without missing a beat.

Physical records also take up a lot of space. As the years go by, you will need more and more space to accommodate new records and documents. Furthermore, it is not advisable to throw away association records once you are through with them. With software, you can keep all association records indefinitely, provided you have enough storage space either internally or in the cloud.

2. Easy Homeowner and Vendor Communications

Communication is an integral part of running an HOA community. Normally, professional management companies take care of homeowners and vendor communications. But, for self-managed HOAs, getting software is the way to go.

Management software allows you to print out or email customizable letters to homeowners. It can also keep track of every email you send so you can refer back to such data in the future. Being an HOA board member also means you take calls and emails from homeowners and vendors all the time. With software, you can take down notes easily and log in the number of hours you spend monthly on communications.

3. Efficient Request Tracking

Requests from homeowners can quickly accumulate and bury you under a mountain of paperwork. Worse yet, hard copies get lost or damaged. With software, you no longer need to worry about that.

Management software lets you track requests in real-time, making sure no request is left unanswered. Any architectural change requests can go right through the software. Your ARC committee can then review these requests and send approval or denial letters using the software.

4. Streamlined Processes (Violations, Invoicing, Collections)

As with requests, invoicing, collections, payments, and violations management can get lost in the shuffle. And, as any self-managed HOA board knows, inefficient processes can have serious consequences. For instance, late payments to vendors can lead to a strained working relationship or service interruptions.

With using management software, you can streamline all your HOA processes. That includes utility billing, payment processing, invoicing, and assessment collections. You can even track homeowner violations for effective covenant enforcement. With faster and more functional tools at your fingertips, you can look forward to a successful self-managed HOA.

5. Real-Time Accounting and Financial Reporting

By far, one of the most challenging aspects of HOA management is accounting and financial management. Not all board members have the background to deal with financial reporting. This is why management software can be beneficial to self-managed HOAs.

With software, you can enter your financial transactions and get real-time reporting. The software will take care of the books for you. You receive monthly reports, take care of bank reconciliations with ease, and get help with budget planning through historical data and projections.

Fraud and embezzlement are also growing concerns among HOA communities. Traditional methods make it all too easy to falsify financial records. A management software fights fraud with the incorporation of an audit trail. This lets you see who added or changed each record. With software, you can run your association with accountability and transparency.

6. Built-In Calendar

Far too often, self-managed associations fall behind on tasks and schedules. This is because HOA boards typically consist of community volunteers with full-time jobs and other priorities.

When juggling your personal and professional lives, it can be easy to forget about HOA activities. Unfortunately, a missed deadline can give rise to other problems.

Management software usually comes with a built-in calendar. From there, you can plot all the important tasks and deadlines you must remember. Some programs even come with alert systems to remind you of an upcoming event, such as a board meeting or spring cleaning day. With software, you can stay on top of all your duties and responsibilities without trouble.

7. Eco-Friendly

In addition to being beneficial to the association, using a program can also be beneficial to the environment. By adopting a management software, your HOA can significantly reduce paper use. No more having to fill up forms in triplicate and then having those forms pile up needlessly in a corner.

8. Cost-Efficient

Contrary to popular belief, using management software can actually save you money in the long run. The cost of the investment may seem high to you now, but keep in mind that your HOA will be using this software for many years to come. Additionally, by cutting back on paper use, you can also find more room in your budget.

The Best Software for Self-Managed HOA

Your HOA board may be reluctant to switch over to management software, and that is understandable. Switching to using a program and learning how to use it can take a lot of time and effort. But, the process is relatively simple if you put in the right amount of work. As you can see, the benefits of software for self-managed HOA communities clearly outweigh the time and cost it will require to start using it.

If your association is looking at HOA software options, consider Condo Manager USA. Contact us today and ask for a free demo!

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What Should An HOA Do With Late HOA Payments

admin on August 30, 2019

Late HOA payments are one of the most common problems homeowners associations face today. With assessments playing a critical role in the continuous operation of the HOA, it is imperative to know how to collect these late payments.

How to Deal with Late HOA Payments

It is not that difficult to understand how an HOA works. Homeowners who live in the HOA community contribute monthly payments or dues. The association then uses the collected payments to fund various HOA activities, maintenance, and repairs.

But, what happens if you don’t pay HOA dues? There are a number of possible consequences you might experience because of late HOA payments. In some cases, an HOA may even use the law against you. If you want to know what your specific HOA can do about overdue dues, though, it is important to refer to both your state laws and HOA governing documents.

How to Collect Delinquent HOA Dues

HOA dues are the lifeblood of any homeowners association. Therefore, it is essential for the HOA board to get a handle on overdue HOA payments to avoid running into funding issues. Here are some of the best ways to collect late HOA payments from homeowners:

1. Send Out Reminders and Provide a Grace Period

Although paying dues is a regular part of HOA living, many homeowners still forget to settle them on time. The HOA board should send out timely reminders before a fee is due.

It is a good idea to post this reminder on bulletin boards as well as your HOA’s website or social media pages if your HOA has them. The HOA should also send the notice via email, SMS, or newsletters.

If a homeowner is already late on their payments, the board should send them a delinquent HOA dues letter informing them of the overdue fees. This way, the homeowner can’t claim that they didn’t know about the delinquency.

It is also common for HOAs to offer a grace period for monthly dues. This is to allow for some breathing room and time for checks to clear in the bank.

2. Offer a Payment Plan

Homeowners can fall on hard times and start to struggle financially. If that happens, the HOA board can offer the homeowner a payment plan. Payment plans vary from association to association, so it is best to check your governing documents for the right provisions to follow. Keep in mind, though, that payment plans are usually not permanent. It is a temporary solution to a temporary problem.

3. Suspend Member Rights

Some associations have the authority to suspend the rights of homeowners when they fail to settle their balance. Florida Statute 720, for instance, gives associations this right. Rights that HOAs can temporarily revoke include voting rights and the right to use the association’s amenities. It is best to consult your HOA attorney first, though, before deciding to follow this path.

From a Fellow Homeowner’s Perspective

It can be difficult to imagine an HOA operating smoothly when other homeowners are not paying their dues on time or are defaulting on them altogether. As a member of your HOA, you naturally want the best for your community. Unfortunately, there is not much you can do to make your neighbors settle their delinquent homeowners association dues.

Increased HOA dues are another point of concern for homeowners when there are delinquencies. Because of the lack of funds, the HOA might charge special assessments or raise the current dues to make up for the loss. Although you can express your worries about the issue, all you can really do is trust that the HOA board will do its job right.

You also have no way of learning which of your neighbors specifically is delinquent, and the HOA board can’t disclose that information. Even if you somehow find out who is late on their payments, taking any action against them can be regarded as harassment.

Setting Up an HOA Late Fee Policy

The idea of having to pay a late fee on top of the monthly dues is sometimes enough to scare homeowners straight. When crafting a policy for charging HOA late fees, though, HOAs must consider the following:

1. Account for the Grace Period

If your HOA has a grace period, don’t forget to take it into account. Although payment is considered late the day after the deadline, most HOAs don’t charge a late fee until a day after the grace period ends. The HOA board must check its governing documents and state laws to verify when it is right to apply the late fee.

2. Check State Laws

Every state has its own set of rules when it comes to late HOA fees, though some states don’t have them at all. The HOA board must refer to state and local laws to ensure it does not run into legal trouble.

For instance, California has a law specifying how much an HOA can charge in late fees. Unless the HOA’s governing documents indicate a lesser amount, the late fee should not go over $10 or 10 percent of the delinquent amount, whichever is greater. The same law states that HOA dues are only considered delinquent 15 days after the due date.

Another area where state laws have a say is how to apply the payments for late dues and fees. In Florida, if a homeowner failed to settle their January dues but pays in February, the HOA will apply the February payment to January. That means the homeowner still has an outstanding February balance and a late fee for January on top of the late fee for February. If the homeowner pays in March, the payment will first apply to the January late fee, and whatever is left will apply to the February dues.

3. Communicate the Policy

An HOA that has a late fee policy should know how to effectively communicate it to its members. If the policy is new, the HOA board should make sure it disseminates the information using all available channels. It is also a good idea to include a copy of the late fee policy in notices and reminders.

Liens, Lawsuits, and Foreclosures: Worst Case Scenario

What happens if you don’t pay homeowners association fees? Apart from charging late fees and suspending member rights, the HOA can also take legal action against you. The HOA board can choose to file a lawsuit and take you to small claims court. Other possible remedies include filing a lien on your property and foreclosing on that lien.

When the HOA files a lien on your property or unit, you will have a hard time selling it. If you do manage to sell the house, you may wonder, “Who is responsible for past due HOA fees?” Although state laws differ, in most cases, the owner of the property will shoulder the responsibility of settling the fees. That means either you or the new owner will pay for it, depending on what you agree upon.

An HOA can also decide to foreclose on your property after placing a lien on it. Although these routes are admittedly more extreme, they do happen, quite often even.

The Best Course of Action

Some homeowners want to learn how to get out of paying HOA dues. The bad news is that there is no way around it. You agree to pay your share of the dues the moment you signed into the association. Provided the HOA followed its governing documents, it is best to just pay the dues and avoid late HOA payments. After all, you are benefiting from the HOA’s amenities and services.

Keeping track of delinquent homeowner accounts can come as a challenge without the proper tools. Use Condo Manager’s integrated HOA and condo association management software today. Schedule a free demo, call us at (800) 626-1267, or contact us online for more information.

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Your Ultimate Guide to HOA Fees

admin on August 30, 2019

HOA fees — they are a staple in any given homeowners association. But, what are they exactly? And what purpose do they serve?

What Are HOA Fees?

What is an HOA fee? Also known as HOA dues, HOA fees are fees that homeowners associations collect from its members, i.e. homeowners. When homeowners purchase a property within the HOA community, they agree to a set of covenants and rules set forth by the association. This includes paying HOA fees.

While HOA fees are paid regularly, the exact frequency depends on the association. Some HOAs have an annual payment setup, while others use a quarterly structure. More often than not, though, HOAs charge fees on a monthly basis.

What Do HOA Fees Cover?

Homeowners associations require funding in order to operate smoothly and continuously. But, not all HOAs are created equal. As such, the services HOA fees cover can vary from HOA to HOA. Typically, though, you can expect your homeowners association dues to cover the following:

Maintenance and Repairs. Common areas and shared spaces require regular maintenance and the occasional repair work. In order to keep the community looking great and functioning well, a portion of the HOA fees should be allocated to maintenance and repairs.
Landscaping. Beautiful landscaping can have a significant impact on curb appeal. When curb appeal is high, property values tend to follow.
Insurance. Every HOA requires appropriate insurance coverage for various liabilities.
Amenities and Services. Living in an HOA community grants you access to members-only amenities such as swimming pools, private parks, clubhouses, playgrounds, and fitness centers. HOA fees also usually cover services such as trash removal, snow removal, and security services.
Reserve Fund Contributions. All HOAs need a reserve fund, which is set aside for future replacements, emergencies, and unexpected expenses.

If you want to know what HOA fees cover, it is imperative to ask the association you intend to join. Therefore, make it a part of your routine to ask for a copy of the HOA’s governing documents, especially the CC&Rs. These documents will contain specific information on restrictions and coverages.

How to Calculate HOA Fees

The process of calculating how much to charge homeowners in HOA fees is relatively simple. The HOA board is responsible for determining the amount after planning the annual budget.

They go over what the HOA expects to incur in costs for the upcoming year. This includes maintenance and repair services, insurance, utilities, landscaping, wages, and other vendor services. They also make sure to allocate enough money to maintain the right reserve fund level.

After arriving at the total anticipated expenses, they will then divide this by the number of homeowners in the community. This is the amount each homeowner must pay for the year. If the HOA collects on a monthly basis, the amount is further divided by 12. Keep in mind that board members are not exempt from paying HOA dues.

It is worth noting that not all HOAs divide the total expenses equally. Some homeowners may need to pay a larger fee depending on the size of their property. As always, it is best to check your HOA’s governing documents for confirmation.

How Much Are HOA Fees?

While there is no blanket answer to this question, average HOA fees can give you a rough estimate of how much you should set aside. HOA average costs can change depending on your location and the type of community you live in as well as what amenities and services your HOA provides. It could extend anywhere from $100 to $1,000. On average, though, HOA fees tend to play between the $200 to $300 range.

Why Are HOA Fees Too High?

There are a few factors that can influence how much an HOA charges homeowners in monthly dues. A high delinquency rate, for instance, can tip the scales.

If there are too many homeowners not paying their dues on time, the HOA board might raise the fees in order to make up for the loss and stay solvent. Emergencies can also cause homeowner association fees to rise.

Sometimes, though, expensive HOA fees are a sign of poor financial management. It could indicate that the HOA is paying too much for services or is in a bad contract with a vendor. There have even been a handful of fraud cases involving HOA funds.

It is essential for the HOA board to remain transparent when it comes to financial activities. The board should always present the annual budget and financial statements to homeowners. This way, homeowners know where their money is going.

If you want to review your association’s financials, you can usually request a copy from the HOA board. After all, homeowners have a right to review the HOA’s financial records. Should the HOA board refuse to comply with a reasonable request, the homeowner can take legal action.

Low HOA Dues Can Be Equally Bad

On the other hand, having low HOA dues is not necessarily a good sign either. When fees are too low, it could mean that the association is skimping on essential maintenance and services. In doing so, it fails to provide homeowners with adequate common areas and amenities.

You might not immediately feel the effects of subpar maintenance. But, over time, you will start to notice things around your community not working properly. Furthermore, poor maintenance can affect curb appeal and bring down property values along with it.

Charging HOA fees that are too low can also give way to surprise costs. With a lack of funding, the HOA will be forced to levy special assessments when unexpected expenses crop up. And nobody wants to pay extra for something that should have been covered by the HOA fees from the beginning.

What Happens If You Don’t Pay HOA Fees?

Some homeowners might not want to pay HOA fees for whatever reason. When that happens, the HOA has multiple recourse options. Provided state laws and the HOA’s governing documents allow it, these options include but are not limited to the following:

Late Fees. The HOA board can charge late fees when a homeowner misses a deadline for paying association dues.
Suspension of Rights. Delinquent members may have their rights revoked until they settle their balance. This includes the right to use community amenities and the right to vote.
Small Claims Court. With the help of an HOA attorney, the board can choose to take the delinquent homeowner to a small claims court to force the member to pay.
Lien. Placing a lien on the homeowner’s property usually happens in more serious cases, but it remains a possibility even for smaller debts.
Foreclosure. When the homeowner still refuses to pay their overdue HOA fees (plus any late fees), the HOA can foreclose on the lien and seize your property. Foreclosures can also affect your credit score.

How to Get Out of Paying HOA Dues

Homeowners agree to abide by the covenants and rules of the HOA when they purchase their property. Part of that is consenting to the payment of regular HOA fees.

By now, you already know that there are certain consequences of refusing to pay HOA dues. You could even lose your home. If you are struggling financially, consider talking to your HOA board and asking them to set up a payment plan that works for you. But, unless you want to face the repercussions of defaulting on your dues, it is best to continue paying them.

A Symbiotic Relationship

Living in an HOA community offers many benefits. These benefits, though, come with a price — HOA fees. Sometimes, people only rebel against something because they don’t understand it. Now that you know what HOA fees are for, you can think of it as quid pro quo. Your HOA provides you with value in the form of maintenance, services, and amenities in exchange for your diligent payments.

Collecting HOA fees can be a hassle if you lack the proper tools. With HOA management software from Condo Manager, you can streamline processes with ease. Schedule a free demo, call us at (800) 626-1267, or contact us online for more information.

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When Should Your Association Levy HOA Special Assessments?

admin on August 30, 2019

In certain situations, a homeowners association may decide to levy a special assessment. Most homeowners are not amenable to this because of the unexpected financial burden. To prevent any misunderstandings between homeowners and the board, here’s what you need to know about HOA special assessments.

The Basics of HOA Special Assessments

Living in an HOA community comes with perks and privileges. You gain access to attractive amenities such as swimming pools, basketball courts, and gyms, as well as convenient services like landscaping, maintenance, and security. In order to pay for the maintenance and upkeep of these common areas, the HOA will collect monthly or quarterly assessments. However, many new homeowners are surprised when they are asked to pay for an additional fee called HOA special assessment.

What Is an HOA Special Assessment?

Compared to monthly or quarterly HOA assessments, HOA special assessments are one-time fees used to finance capital improvement projects. Ideally, HOA reserves fund capital improvement projects.

However, not all associations are able to maintain adequately funded reserves. HOA boards may also decide to levy a special assessment due to significant property damage following a natural disaster. Since these events are unexpected, the association may not have saved enough to pay for the repairs and replacements.

Are Homeowners Required to Pay for HOA Special Assessments?

Yes, homeowners are legally obligated to pay HOA special assessments. Every HOA will have a section regarding special assessments written in their Covenants, Conditions, and Restrictions (CC&Rs). A standard Covenant to Pay Assessments will include the annual/quarterly/monthly assessment dues, assessments for rule violations, and special assessments. Upon joining an HOA community, homeowners sign a contract which means that they accept all the stipulations in their governing documents.

How Does a Special Assessment Work?

HOA boards must first send an HOA special assessment notice to inform homeowners of an impending collection. However, if the amount exceeds the HOA special assessment limit stipulated in the governing documents, the board must obtain approval from the homeowners.

For instance, the governing documents stipulate that special assessments must not exceed 5% of the total budget. If the HOA needs more than 5%, they must hold a meeting with a quorum. The board needs a majority vote to proceed with the special assessment. Although, this requirement can be waived in emergency situations.

The board must send the HOA special assessment notice 30 to 60 days ahead of the established due date. After the due date, homeowners who do not pay their assessments within 15 to 60 days may be declared delinquent. The HOA can levy late fees and interest charges. They could also place a lien on delinquent homeowners’ properties.

How Are Special Assessments Calculated?

When the board collects a special assessment, the total amount must be equally divided among the homeowners. Each homeowner must pay the same rate.

Does Homeowners Insurance Cover Special Assessments?

If homeowners have loss assessment coverage, their insurance provider may cover the costs of HOA special assessments. Make sure to double-check with your insurance provider to avoid unexpected or surprise charges.

Reasons to Levy HOA Special Assessments

HOA boards have the authority to levy a special assessment on homeowners. However, they must abide by the HOA special assessment rules or limits written in the governing documents. Here are possible reasons why your HOA might levy a special assessment.

1. A Special Assessment to Cover Inadequate Assessments

The HOA may levy a special assessment if they determine or anticipate that the association funds will not be enough to cover the expenses for the fiscal year. This could be due to extraordinary circumstances, which led to spending more than what was budgeted, or it may also be due to improper budgeting.

2. A Special Assessment Due to Defray Costs of Capital Improvement Project

HOA special assessments can also be levied to cover the costs of capital improvement projects. If the association’s reserves are not enough, the special assessment may be necessary to pay for the repairs or replacements of major components or assets.

3. A Special Assessment Due to Insufficient Insurance Coverage

HOAs can rely on their insurance coverage to cover the costs of property damage due to natural disasters. However, there are instances when the insurance payout is not enough to cover.

Thus, the board may decide to levy a special assessment to make up the difference between the insurance payout and the actual cost of repair or replacement.

4. A Special Assessment to Replenish Reserves

HOA boards may levy a special assessment to replenish the reserve account. Associations must always have an adequate amount saved in their reserves in case there are emergencies, natural disasters, and other unfortunate situations.

5. Other Reasons Deemed Appropriate by the Board

The board has the authority to levy special assessments for reasons that they deem appropriate. They could use it for expenses incurred as a result of performing their duties and obligations. However, in some cases, the governing documents will first require approval from the homeowners via a majority vote.

What Are Special Individual Assessments?

There are also cases where the HOA board may levy special assessments to specific homeowners. Here are some possible reasons for levying special individual assessments.

A special assessment to cover property damage in common areas caused by the willful misconduct or negligence of a homeowner.
If a homeowner’s property is creating a nuisance or hazard, the HOA may levy a special assessment to cover the costs of correcting the said nuisance or hazard.
If a homeowner’s action results in the increase of HOA insurance rates, the board may levy a special assessment to cover the additional insurance costs.
A special assessment to cover the delinquencies of a homeowner who was responsible for maintaining/overseeing a project.

Understanding Why Boards Levy HOA Special Assessments

It can be shocking to receive a notice for a special assessment — on top of the HOA fees that you already have to pay. However, homeowners must also understand the reasons why the board has decided to levy the special assessment. If major components are left unfinished or utilities are left unpaid, there will be major consequences for the entire community. Your quality of life could deteriorate without the added funds from HOA special assessments. To avoid them in the future, homeowners should consider working with the board to find better financial management solutions.

Need help with HOA special assessments? Condo Manager has the software that can make HOA financial management a breeze. Call us at (800) 626-1267, email us at sales@condomanagerusa.com, or contact us online to learn more about our HOA software solutions.

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