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9 Valentine’s Day Ideas For Seniors In Your Community

A lot of brands and communities focus on the younger crowd when using Valentine’s Day as a tool for engagement. But, senior residents also deserve to receive love from their homeowners association this time of the year. Here are some Valentine’s Day ideas for seniors.

 

Fun and Suitable Valentine’s Day Ideas for Seniors

While older adults are more likely to live with extended family in other parts of the world, the United States stands out. In fact, in the U.S., 27% of adults aged 60 and older live alone. There are also a number of seniors who live with their partners but not their children. This is common across the country, with many communities specifically housing adults aged 55 and above. For these communities, it can be difficult to think of Valentine’s Day activities and events that fit the resident demographic.

Here are some ideas to get you started.

 

1. Send a Valentine’s Day Card

One of the simplest and most affordable ways to celebrate Valentine’s Day in a senior community is to send a card. Buy enough Valentine’s Day cards for all the residents, then write a heartfelt message inside each one to show them how much they mean to the community. It does not even need to be long or poetic. Something short yet sincere can work wonders. While you can mail these cards to each resident, delivering them by hand will make the gesture more special.

 

2. Send Flowers or a Houseplant

valentine's day for the elderlyWho doesn’t like receiving flowers on Valentine’s Day? The seniors in your community will certainly appreciate a bouquet of roses or tulips — or any other flower, for that matter.

The price of flowers tends to skyrocket during Valentine’s Day, though, so you can send a houseplant instead. Houseplants are great because they add soothing energy to any room. Plus, there are many houseplants that don’t require a lot of care or attention, making them perfect for senior residents.

 

3. Share Homemade Pastries

Valentine’s Day is all about sweet treats, so why not share them with the elderly residents in your community? You can gather some of the younger residents together to bake pastries for the older adults in the neighborhood. Alternatively, you can just purchase pastries from your local bakery and then hand them out to the senior residents. The best part about this is that there is no shortage of pastries you can give away. Cakes, cookies, or candy hearts — take your pick!

 

4. Send a Care Package

Many senior residents, especially those living alone, don’t receive gifts on Valentine’s Day anymore. One way the community can make seniors feel appreciated is to put together and send them care packages. You can assemble a standard care package or, if you know residents well enough, tailor each care package according to the personality and needs of every resident.

Here are some ideas of what you can include in your Valentine’s Day senior care package:

  • Books
  • Fruits
  • Cookies
  • Wine
  • Snacks
  • Teas
  • Cocoa packets
  • A food service subscription
  • A small pillow
  • Socks
  • A blanket
  • Slippers

 

5. Hold a Movie Night

A movie night might be one of the simpler Valentine’s Day ideas for seniors, but it has a couple of benefits. For one thing, the seniors in your community will appreciate watching a movie without having to go all the way to the cinema. It also gives the residents in the HOA a chance to get together and bond with each other.

Of course, given that it is Valentine’s Day, the best movies to watch are romcoms. Some communities are opting for rom-com movie marathons, but older adults might get tired easily and want to go home after only watching one film. As such, you can take your pick from some of the best romcoms and go from there. It can be a single-night event or an event that takes place over multiple nights, with each night showing a different flick.

 

6. Host a Tea Party

A tea party is a great way to gather senior residents under one roof and have a lighthearted Valentine’s Day celebration together. Brew some tea and put out some biscuits or pastries (or both). Play some soft music in the background for a calm and comfortable atmosphere. You can do this indoors or outdoors, with garden tea parties being a particularly popular choice.

 

7. Organize a Walk

Another good way to celebrate Valentine’s Day for the elderly is to organize a walk in the community. This is perfect if your neighborhood has greenspaces, a park, or a walking trail. Exercise is good for the health no matter how old you are. As such, getting seniors to walk together not only promotes a healthy lifestyle but also encourages residents to get to know each other.

 

8. Arrange a Game Day

valentine's day ideas for seniorsWhen you think of Valentine’s Day ideas for seniors, a game day is probably one of the last things that come to mind. But, older adults enjoy playing games just as much as younger ones.

Sure, more active or physical games are probably off the list, but there are other games you can play together. Some examples include bingo, card games, word searches, sudokus, and other puzzles. It gives residents a chance to show their competitive side while still enjoying the company. You can do this at the clubhouse and even allocate a prize for the winner.

 

9. Give Back to the Community

Many seniors like to knit or sew. You can tap into this hobby and organize a charity drive wherein elderly residents can make hats, gloves, or scarves to donate to a local hospital or shelter. Senior residents will definitely appreciate having a creative outlet while simultaneously being able to share the love with those who need it most.

 

Spreading Love to Seniors on Valentine’s Day

Senior community residents often feel alone or left out on special days like Valentine’s Day. After all, not a lot of associations create specific events that cater to this demographic. Whether you run a 55-and-older community or an HOA with a sizable elderly population, these Valentine’s Day ideas for seniors are sure to make a huge impact.

 

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10 Most Common HOA Service Requests And How To Handle Them

HOA service requests come in all shapes and sizes. But, more often than not, associations don’t have the tools and resources to handle each one.

 

What Are the Most Common HOA Service Requests Boards Receive?

Homeowners and condo associations collect regular dues from their members. They use these dues to fund the various expenses in the community, including insurance and management fees. These dues also go into maintenance and repairs of common elements as well as shared facilities.

Every once in a while, though, these elements can break down or become damaged, resulting in a need for repairs. Boards may not always notice these damages, so it is up to the homeowners to report them.

This is where service requests come in. Service requests, also known as work orders, are requests that homeowners or staff members submit to the association. Typically, the HOA manager or HOA board will review these requests and take action if necessary. These service requests come in different forms, though some are more common than others.

 

1. Broken Windows and Entryways

Whether it is at the clubhouse or shared as a common element in a condo, broken windows and entryways are nothing to brush off. A damaged door, for instance, might not close or lock properly, making it a security issue. A damaged window is the same way, but with the added risk of being dangerous to others.

No matter the damage or condition, it is imperative that boards inspect these service requests right away. In doing so, they can prevent further damage and make needed repairs immediately.

 

2. Damaged Sidewalk or Road

road repair | HOA service requestsFor non-gated homeowners associations, sidewalks and roads likely fall under the jurisdiction of the local government. In that case, if an HOA receives a service request concerning sidewalks and roads, it is best to forward it to the correct authority.

There are many homeowners associations, though, that are located inside gated subdivisions. For such communities, the responsibility of repairing sidewalks and roads may fall on the HOA. It is not uncommon for streets and sidewalks to become damaged after prolonged use. These surfaces suffer damages due to accidents, too.

When an owner submits a service request for this, boards must spring into action. That way, no further damages and accidents can occur. Moreover, damaged sidewalks and roads contribute to lower curb appeal.

Potential homebuyers will take one look at the state of these surfaces and immediately walk away. Leaving sidewalks and roads in disrepair for a long time can give the impression that the association does not care about the upkeep of the community.

 

3. Malfunctioning Elevators

Elevators are more common in condo or high-rise communities, though it is not unheard of to find them in the common facilities of single-family communities. Regardless of where they are located, elevators should receive regular maintenance. Boards must hire a professional to inspect all elevators on a routine basis to see if everything is working well.

But, even with regular inspections, elevator breakdowns can still happen. When an owner reports this to the HOA, boards must act quickly. A malfunctioning elevator is not only a nuisance but can also pose certain dangers to the well-being of members. This can result in potential liability for the association.

 

4. Water Filter Replacement

Some HOA communities use shared water filters. When these water filters become worn or accumulate a lot of sediment, they can affect the quality of water that comes out of the tap. Before long, the board will receive tons of the same service requests from unit owners simultaneously. Since water filters are more of a health issue, it is best to replace them when necessary and when the board gets a lot of complaints.

 

5. Landscaping

landscaping | HOA service requestsProper landscaping can breathe new life into any space. The added greens and beautiful layout can significantly boost the curb appeal in a community.

As such, it is important to have a professional company maintain the association’s landscaping.

Sometimes, though, bushes will begin to overgrow and the branches on trees will start to droop over. Grass will grow long and hedges will look unruly. An owner may submit a service request to have common area landscaping redone or retouched. In some communities, the HOA will hire a single landscaping company to take care of the common areas as well as individual owners’ homes (for a fee, of course).

 

6. Lightbulb Replacement

It may seem trivial to report a single dead lightbulb to the HOA, but it is still within the best interest of the community for the board to take a look at such a request. Replacing a lightbulb does not take a lot of time or effort. But, if the board notices that the same bulb always goes out, then there might be a larger underlying problem.

When replacing lightbulbs, it is a good idea to go with an energy-efficient option. Most local home improvement stores sell LED bulbs at affordable prices. These bulbs also tend to last longer, allowing for fewer service requests concerning lightbulb replacement.

 

7. Plumbing Requests

Whether it concerns a shared facility or a common element, plumbing requests are some of the most common HOA service requests boards will encounter. Plumbing systems can experience wear and tear, resulting in damage over time. When that happens, boards should expect owners to report the problem.

Boards must swiftly address any plumbing concerns. When left unresolved for even a short period of time, plumbing issues can quickly escalate and turn into water damage.

 

8. HVAC Maintenance

HVAC maintenance | HOA service requestsHeating, ventilation, and air conditioning (HVAC) systems require regular maintenance. This will minimize the risk of a breakdown.

But, sometimes, an HVAC system will still suffer damage even with careful cleaning and maintenance. There are a number of things that can go wrong — from clogged air filters and damaged condensers to malfunctioning ignitions and refrigerant leaks. Whatever it may be, it is best for the board to take immediate action and have a professional deal with the problem.

 

9. Pool Cleaning

There is just something alluring about living in a community with a swimming pool. But, without proper care and maintenance, pools can quickly turn disgusting.

Homeowners associations can prevent this by actively maintaining a pool cleaning schedule. But, an owner might still lodge a request to clean the pool every now and then.

 

10. General Cleaning

Shared spaces can quickly become dirty in an HOA community, especially the larger ones. Boards should expect owners to file service requests asking for a common facility or area to be cleaned. This may be due to someone spilling a lot of food somewhere or walking inside with muddy shoes. Whatever the case may be, general cleaning is one of the most common requests associations will receive.

 

How to Handle HOA Service Requests Using Software

Juggling service requests used to be more difficult in the past. But, in the digital age, homeowners associations no longer need to rely on pen and paper. With HOA software, owners can simply submit service requests online through a member portal. The board or responsible committee will then receive these service requests, sorted in whatever way the board chooses.

It is also possible to combine similar service requests into one. This way, there is no need to respond to each request individually. Once a request has been addressed, the board can simply reply and close the ticket. Then, it is time to move on to the next one.

Another benefit of HOA software is scheduling. Homeowners associations can minimize the number of service requests they receive by following a proper maintenance schedule. A lot of software comes with maintenance scheduling options that boards can tailor to their own specific needs. Once a maintenance task comes up, the software will remind the board and contact the necessary vendor/s.

 

The Importance of HOA Service Requests

HOA service requests are essential to the smooth functioning of any planned community. These requests notify the board of any problems within the community, allowing the board to inspect the problem for any potential damage. In doing so, the board can address these problems before they worsen.

In need of HOA management software that comes equipped with a service request module? Condo Manager is your best option. Call us today at (800) 626-1267 or contact us online for a free demo.

 

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How To Read HOA Financial Statements And Understand Them

Every member of a managed community should know how to read HOA financial statements. This knowledge will help owners understand how the association is doing financially and be able to determine whether the board is doing its job well.

 

HOA Finance 101: How to Read HOA Financial Statements

Homeowners associations operate largely like corporations. There is a Board of Directors that calls the shots and ensures that the organization is running smoothly. The HOA board is also responsible for preparing regular financial statements, though this job can also fall on the HOA manager.

Typically, financial statements come at the end of every month and at the end of the fiscal year. In many states, such as California, the law requires homeowners associations to make these statements available for members to review. Homebuyers can also have access to such reports, as assessing the financial health of the association will help them make a decision on whether or not to buy into the community.

 

What Are the Benefits of Knowing How to Interpret Financial Reports?

It is important for both board members and homeowners to learn how to read HOA financial statements. For one thing, it is part of the board’s job to do so. Knowing how to interpret financial statements will help the board prepare an accurate annual budget. It will also inform the board’s discussions when it comes to the association’s finances, allowing them to make sound financial decisions.

For homeowners, understanding HOA financial statements will let them stay on top of the association’s financial condition. Homeowners benefit from the community’s financial success, as it has a direct impact on property values. As such, it only makes sense to keep track of its finances. Homeowners also have a right to know where their money is going. After all, owners pay regular dues for the purpose of maintaining the community.

Beyond all else, knowing how to read financial statements will help both boards and owners in preventing fraud. If only one person understands these reports, then it would be easy for that person to cook the books and steal money from the HOA. Learning how to read financial statements will allow owners to spot any signs of fraudulent activity.

 

A Guide on How to Understand HOA Financial Statements

Unfortunately, not everyone in an HOA community knows what the numbers mean in financial reports. But, once one knows about the basics, it is actually relatively easy to learn how to read HOA financial statements.

 

Balance Sheet

understanding hoa financial statementsThe balance sheet shows a snapshot of the association’s financial condition. It presents the HOA’s assets, liabilities, and equity — all in one neat report. It is called a balance sheet because the association’s total assets should equal its total liabilities and equity.

Through the use of financial strength ratios (such as working capital and debt-to-equity), an owner can determine whether the HOA can meet its obligations. These ratios, along with several others, give owners an idea of the association’s financial stability. While the balance sheet is an integral part of any HOA’s financial package, it usually requires the accompaniment of other reports to fully understand the association’s financial health.

 

Income Statement

The income statement is a detailed view of the association’s income compared against its expenses. It essentially shows whether or not the HOA was able to meet its financial obligations with the funds it has accumulated over a set period of time. The income statement consists of the HOA’s revenues, expenses, and reserve contributions. Totaling all of these numbers will arrive at a net profit or loss for the association.

Though it is not an HOA’s main goal to earn a profit, a net loss would indicate that the community had more expenses than revenue streams in the past period. This means the board either did not practice smart spending or failed to prepare an accurate projected budget. Sometimes, it could point to an underlying financial issue such as fraud or embezzlement.

Owners should look for overly inflated expenses or redundancies to spot fraudulent activity. For instance, it would not make sense to spend five figures on office supplies. Members should remember that it is okay to question the board’s spending and that such a practice is healthy and helps keep the board in check.

 

Cash Flow Statement

The cash flow statement consists of three parts: operating activities, investing activities, and financing activities. Analyzing the cash flow statement will allow boards and owners to understand how the association is handling its money.

Under operating activities, owners will find the association’s cash sourced and spent on business-related items. This could mean dues from owners, fines, salaries, and other operating expenses. Under investing activities, owners will find items that are considered investments, such as assets or equipment. Any reserves invested should also be presented here. Finally, under financing activities, owners will find cash sourced from investors such as banks.

 

Accounts Receivable Report

how to understand HOA financial statementsThe accounts receivable report tells boards and owners how much is owed to the association. It is a summary of all the money the association expects to receive. It could include dues from homeowners, rental income from a facility, etc. This could also come in the form of an aging report, which shows how long each account has remained unpaid.

The HOA should maintain a fairly reasonable AR report. It should not have too many receivables, especially overdue receivables, as that would mean the board is not putting a lot of time into collection efforts.

 

Accounts Payable Report

The accounts payable is similar to the accounts receivable report but in reverse. Instead of showing amounts owed to the HOA, this report shows the amounts the HOA owes. As with the AR report, it may also show how long each account has remained unpaid. Too many payables would indicate that the association is not paying its debts on time or that there is not enough money to settle the balances.

 

A Form of Protection

Boards and homeowners alike must learn how to read HOA financial statements. In doing so, they can interpret the reports accurately and make smarter financial decisions. It is also a way to protect the association from fraudulent acts. When it comes down to it, understanding financial statements should not be a job left only to one person.

Homeowners associations can significantly make financial statement preparation easier with the help of HOA software. Call Condo Manager today at (800) 626-1267 to learn more or contact us online for a free demo.

 

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11 HOA New Year’s Eve Party Ideas For The Community

A new year marks the beginning of a new chapter, which is why cultures around the world celebrate the momentous occasion. For homeowners associations, it is a chance to bring residents together. If you’re running out of HOA New Year’s Eve party ideas, you’ve come to the right place.

 

Welcome 2022 With These HOA New Year’s Eve Party Ideas

The holiday season is the perfect time for people to relax and enjoy quality time with their loved ones. For many others, though, it is a time to celebrate and let loose. After a physically and mentally exhausting year for homeowners associations, a celebration is certainly deserved.

One of the challenges of planning an HOA New Year’s Eve party, though, is coming up with ideas. From party themes and favors to activities and costumes, here are some of the best ideas for New Year’s Eve events.

 

1. Livestream the Ball Drop

The Times Square Ball Drop is a headline event that attracts at least a million attendees every year. But, for those who can’t make it in person, the event is televised on a national scale. As a way to bring the community together, consider counting down to the new year by streaming the ball drop at the community clubhouse. The HOA can organize the event, serve simple snacks and drinks, and show the ball drop through a screen or projector.

 

2. Stick to a Simple Dance Party

HOA new year's eve party ideasWho says HOA New Year’s Eve party ideas need to be complicated and fresh? Even a modest dance party can do wonders for community spirit. The great thing about a dance party is that it caters to all ages. Kids, adults, and elderly residents alike can participate and have fun. Add some refreshments, a few snacks, and perhaps even a disco ball, and you’ve got yourself a banger!

 

3. Countdown With a Movie Marathon

Parties don’t have to be physically engaging. Homeowners associations can keep it simple by organizing a movie marathon that ends at midnight on New Year’s Eve. Guests can bring their own snacks and beverages or the HOA can provide them for a fee. Some of the best movies to watch this holiday season include “About A Boy,” “Sleepless In Seattle,” “Love Actually,” and, of course, the star-studded “New Year’s Eve.”

 

4. Bring Vegas to Your Community

In need of HOA New Year’s Eve party ideas for adults? Bring out the poker sets and blackjack tables — it’s Vegas night!

To plan a Vegas-themed New Year’s Eve party, an HOA will need a space big enough to accommodate card tables and guests. The community clubhouse will usually suffice. It may also be necessary to rent gaming tables, though a DIY approach is also possible. Of course, it is a good idea to play with fake money for legal reasons.

 

5. Get Started With a Workout Party

The two most popular New Year’s resolutions for Americans this year are to improve their fitness and to lose weight. Homeowners associations can encourage residents to get a head start on their resolutions by counting down with fitness classes. This one is relatively easy to set up if the HOA already has a gym or fitness center. Though, classes can also take place in other common spaces. Some of the best community workouts to organize include aerial silks, cycling, restorative yoga, and dance classes.

 

6. Get Fancy With a Masquerade Ball

HOA new year eve party games ideasTransformation is a key element of New Year’s celebrations, so it makes sense to plan a masquerade ball. To attend, guests must wear masks and formal attire.

Associations can also provide masks at the venue to take the burden off of residents. With a masquerade ball, HOAs can encourage residents to tap into their mysterious sides. For an extra dash of adventure, count down to midnight with a New Year’s Eve kiss before asking guests to take their masks off.

 

7. Get Competitive With Games

Parties are more fun with games, so associations can consider planning a game night instead. Residents can bring their own board or card games from home to share with everyone else. Alternatively, the HOA’s social events committee can organize party games ahead of time and even offer a prize for the night’s ultimate winner. Gift checks to local shops and restaurants work great, though cash prizes are fine, too.

Some of the best HOA New Year Eve party games ideas include:

  • Musical chairs
  • Charades
  • Pictionary
  • Heads up
  • React and act

 

8. Have a Bubble-Themed Night

One of the more unique HOA New Year’s Even party ideas is a bubble-themed night. To throw such a party, HOAs can decorate the venue with balloons and streamers. For kids, associations can hand out bubble blowers or bubblegum to enjoy. As for refreshments, you can get creative by serving bubbly water, champagne, and even bubble tea. Then, before the night ends, the HOA can give away bubble bath bombs as party favors.

 

9. Stay Comfortable With a PJs Party

Sometimes, it is much easier (and more comfortable) attending a party in your jammies. Homeowners associations can change things up this year by throwing a pajama party instead of a fancy one. Guests can come sporting their favorite or most eccentric sleepwear along with comfy slippers. Decorate the venue with bedsheets and lay down pillows on the ground in place of chairs. For activities, watching a movie or telling exciting stories work great. Finally, as HOA New Year’s Eve party favors, you can hand out soft socks.

 

10. Have Some Fun in the Sun With an Outdoor Party

HOA new year's eve party favorsOne of the best HOA New Year’s Eve party ideas for kids is to throw a daytime party outdoors. Kids often need to be in bed by a certain time or they get sleepy before midnight.

As a way to celebrate with them without having to keep them up too late, an HOA can host an outdoor New Year’s Eve party. The party can include snacks, beverages, and games, as well as an early countdown. Aside from kids, this type of party works perfectly for the elderly and those who simply can’t be bothered to stay up until midnight.

 

11. Have a Virtual Party

The past two years have been wrought with uncertainty due to the COVID-19 pandemic. Even with vaccines available, there are still a lot of people who are afraid to go to crowded places, especially with a new variant of concern spreading. As a compromise, homeowners associations can plan a remote New Year’s Eve party instead. The party can take place on Zoom while residents stay in their respective homes. It can include games played over an online platform and end with a countdown to 2022.

 

Not a Dull Moment

Ringing in the new year is always more fun when done with other people. For homeowners associations, this is the perfect opportunity to spread some holiday cheer while fostering community camaraderie. Start with these excellent HOA New Year’s Eve party ideas!

 

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HOA Architectural Requests: Keeping Track Of Them With An HOA Management Software

Homeowners associations are known for their positive impact on curb appeal and property values. One of the ways these communities achieve this is through the careful implementation of architectural rules. In HOAs, homeowners must first file HOA architectural requests before making any changes to their property.

 

What Are HOA Architectural Requests?

The primary function of a homeowners association is to maintain curb appeal and enhance property values in a community. To do this, HOAs collect dues from members to pay for various expenses as well as create and enforce strict policies. One of these policies typically has to do with how homeowners can alter the exterior (and, sometimes, even interior) appearance of their homes.

A common example of an architectural guideline is restricting certain colors. In many HOA communities, you will notice that the rows and rows of houses all somehow sport the same color or shade. This is to maintain the character of the neighborhood. After all, a single neon pink house in a row of muted browns can disrupt the aesthetic flow of the community.

While specific architectural guidelines can vary from one association to another, they all have the same goal — to maintain a uniform appearance. But, what if a homeowner wants to make a change to their home’s exterior? This is where HOA architectural requests come in.

To put it simply, an HOA architectural request is a request a homeowner puts in to change or modify their property. Homeowners need to seek approval from the HOA board or Architectural Review Committee (ARC) before going ahead with their plans. Otherwise, they risk violating their community’s rules and may even be ordered to reverse the changes already made.

 

What Your HOA Architectural Review Process Should Include

All homeowners associations should have a standard review process in place for architectural changes. If you are still creating yours, here are the steps you must not leave out.

 

1. Detail Your Procedures in Writing

The first thing you should do is write down your architectural procedures. Make sure to include your standards and procedures for HOA architectural requests in your governing documents. You should also educate homeowners on these procedures so that you won’t get as many requests that go against the guidelines.

Be specific with your architectural procedures. This means detailing what colors owners can use, how tall fences must be, what materials they can use, etc. You should also indicate criteria for the architectural style, whether that is modern, colonial, art deco, or otherwise. Then, you should go into specific criteria for different renovations. For example, if owners want to replace their windows, what kind of windows should they use? The same goes for door replacements, roof changes, and the like.

Apart from the standards themselves, your architectural guidelines must also explain how homeowners can apply for architectural change requests. While it is important to strictly abide by the rules, you must remember that rules can also change. Your board or committee must always remain open to the idea of changing your guidelines if necessary.

 

2. Set Deadlines (and Follow Them)

hoa architectural review request formAfter putting in a request for an architectural change, homeowners should not be left wondering when they will receive a reply. Thus, it is important to set a prompt deadline for review. The HOA board or ARC must get back to owners within X number of days with a response.

Of course, this does not mean you should rush the review process. But, by setting a deadline, owners can align their expectations and avoid pestering the board or committee every so often. The process does not have to take place within just a few days, but it should not last for months either.

 

3. Document Everything

For consistency and documentation, it is a good idea to have homeowners complete and submit an HOA architectural request form. This is so you can ask for all pertinent details in one form and avoid having owners just send a letter directly to the board. Additionally, you should inform residents that they must fill out the form correctly or risk having the request automatically rejected. This keeps the process fair for everyone involved.

At the very least, your HOA architectural review request form should include the following:

  • Name and unit number of the requesting owner
  • Requesting owner’s contact information
  • Nature of the architectural request
  • Target start and completion dates
  • Contractor details
  • Details of the project (what paint color or materials will be used in the project)

Make sure to have a board member or committee member document, in writing, every phase of the architectural review process. These documents will prove to be useful in the event of a disagreement or litigation down the line.

 

4. Be Transparent With Decisions

Keeping the architectural review process closed will only breed mistrust in the community. Thus, it is important to maintain transparency throughout.

After deliberating, the board or committee must send a written decision to the requesting homeowner. If the owner’s request is denied, the letter should include a reason or explanation for the denial. Homeowners should also have the option to appeal the decision, and the procedure for that must be included in the letter, too. In some states, such as California, these requirements are even mandatory.

 

5. Make Decisions in Good Faith

The HOA board and ARC must always base their decisions on sound judgment. Any decisions should be approved or disapproved strictly according to the rules. All decisions made must be fair, reasonable, and consistent. This is, in no way, a means for a board or committee member to retaliate against a neighbor or repay a favor.

 

The Importance of Keeping Track of HOA Architectural Requests

Homeowners associations must stay on top of architectural requests at all times. Failing to do so can cause these requests to pile up. Pretty soon, owners will grow impatient and angry at how long the decision is taking. Plus, if your architectural guidelines say that you have a certain number of days to make a decision, violating this may put the board’s credibility into question. In some cases, it could even be viewed as a breach of their fiduciary duty.

Architectural requests are also a way for an HOA to maintain curb appeal and enhance property values. If an owner has a worn or broken-down window, replacing it is necessary to keep the neighborhood’s aesthetics. Having even one request go unheard can have a negative influence on the entire community.

 

How HOA Management Software Can Help

Keeping track of your architectural requests can come as a challenge if you do it the old-fashioned way. You may have depended on pen and paper for a long time now, but an HOA management software is just as reliable — if not more so.

How can an HOA management software help you with your HOA architectural requests?

  • hoa architectural request formHave an HOA architectural review request form ready for download on your website.
  • Allows homeowners to upload or send their forms through the member portal.
  • Lets board or committee members review forms (in FIFO) directly from the software.
  • Allows board or committee members to approve or reject requests with ease.
  • Gives you the ability to automatically send (or print) a letter of approval or disapproval to the requesting homeowner, with a field to type in the reason for rejection if necessary.
  • Allows for comprehensive step-by-step documentation.
  • Stores all requests, including approvals and disapprovals, within the software or cloud for easy record-keeping and tracking.
  • Lets your search past requests, including their history, in case you need to go back and check something.

 

A Task Made Simpler

HOA architectural requests go a long way in ensuring the smooth operations of a homeowners association. But, they can be troublesome to track, especially if you live in a community with hundreds of members. Make your job as a board or committee member easier with the help of HOA management software.

Condo Manager provides expert management solutions for self-managed communities and HOA management companies. Call us today at (800) 626-1267 or contact us online for a free demo of our software.

 

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HOA Holiday Planning: How To Prepare For The Holidays

The holidays are when you gather with your family, friends, and neighbors to celebrate the season. Not everyone likes the planning that usually comes with this time of the year, though. But, with the proper preparations, HOA holiday planning can be easy as pie.

 

A Guide to HOA Holiday Planning for Homeowners

Many people enjoy the holidays because it means attending parties and throwing ones of your own. If you plan to welcome guests into your home this year, there are some key points you should not look over. Here is your guide to holiday planning for homeowners.

 

1. Let Your HOA Know

If you live in an HOA community, there is a good chance you will need to inform your association of your intention to throw a party. Homeowners associations typically have strict rules when it comes to occupancy limits or guests, noise, and parking. When you have people over, it automatically increases the likelihood of parking congestion and loud noises at night.

Inform your HOA board in advance that you plan to host a party. You may need to fill out a form consisting of the details of the party, such as the time, expected number of guests, etc.

 

2. Follow the Community’s Rules

Again, this applies to homeowners who live in an HOA community. Your association will definitely have rules concerning parking, noise, and indecent behavior.

community rules and regulations | hoa holiday planningIf your neighborhood does not have enough parking space for guests, ask them to carpool instead. Your neighbor may also be able to lend you a parking space or two. Noise rules also likely exist in your community. This usually means no loud noises beyond a certain time, so keep the laughter and holiday music on low volume.

Make sure to sort out these issues ahead of time so that you don’t feel rushed when the date nears. Educate yourself on the community’s rules, and do your best to adhere to them. This way, you can avoid violations, which can come with hefty fines. You should also let guests know of these rules and ask them to follow them, too.

 

3. Clean Up

If you are throwing a holiday party at your house, you will want to make it look presentable. That means cleaning up toys, laundry, and any other knick-knacks that are lying on the ground. It is also a good idea to give your bathroom a quick wash so that it is ready for heavy use, especially if you are having a lot of guests over.

Put away anything that might limit your guests’ walkways. There should be a clear path from your front door and inside your home. This way, guests can move around freely. Don’t crowd the couch or seating area with your belongings, too. You want to make sure your guests have somewhere to sit.

 

4. Prioritize Kitchen Safety

The kitchen is where most of the preparation takes place when you throw a holiday party. If you are cooking a holiday feast at home, kitchen safety should come as a priority.

When cooking multiple dishes, you should stay alert and aware of your surroundings. Make sure no pot boils over and no pans burn. Keep anything flammable away from sources of fire. While Thanksgiving takes the cake for the single day when most home cooking fires occur, Christmas Day and Christmas Eve are close seconds.

Holiday dinners also usually involve the use of knives and other sharp utensils. Keep these things away from children or the inexperienced. Only those who know how to handle knives should be allowed to use them.

 

5. Don’t Over Serve Alcohol

Most holiday parties serve alcohol, but it is important not to serve too much. Unless you are having your guests sleep over, you should keep the alcohol to a minimum. Remember that you are not the only resident in your neighborhood. Intoxicated guests may become a nuisance to your neighbors and the association. Designated drivers should not drink either.

 

6. Going Out of Town? Secure Your Home

Home burglaries increase during this time of the year, as more people leave their homes to go on vacations. If you have plans outside of your home this holiday season, here are some tips to prevent break-ins:

  • install security cameras | hoa holiday planningLeave a light on inside to give the illusion of someone at home. To save on energy, install timers that turn on your lights at specific hours.
  • If you have an extra car, leave it parked in your driveway. You can also ask a neighbor to park their vehicle there instead.
  • Request a neighbor to check on your house every now and then.
  • Invest in security cameras or a home security system (or both).
  • Hire someone to house-sit.

 

How to Plan HOA Holiday Events for the Community

Many homeowners associations host community-wide holiday events. These events help bring neighbors closer and encourage new connections to form. If your HOA board wants to throw a holiday event or two this year, follow the steps below.

 

1. Gauge Interest

When it comes to HOA holiday planning, the first thing you should do is gauge interest. If no one in your community wants to attend the event, then there is no use planning it.

 

2. Start Early and Advertise

Once you know that people are interested in attending an HOA holiday event, you should get to work immediately. Give your board or committee enough time to plan the event. You should also start promoting the event ahead of time. This way, residents can block out their schedule early on.

 

3. Decide on Details

When planning a holiday event, you will need to work out the details. Decide on the date and time, the venue, and the theme (if necessary). Don’t schedule the event on a day when you know most people will be busy. This includes Christmas Eve and Christmas Day.

As for the time, it will depend on the type of event you plan. Holiday parties usually happen at night, though you can schedule them earlier if you plan to invite kids. Larger events, such as carnivals, typically take place over a multi-day period. For your venue, you can hold it at your community clubhouse or open space.

 

4. Work Out Parking

If the venue is located far from residents’ houses, you will need to organize a parking scheme that can accommodate everyone attending. Make sure to account for extra traffic, too. On the other hand, if the venue is near, people can simply walk there.

 

local food festive | hoa holiday planning5. Plan for Food

Most holiday events involve food. There is simply nothing like breaking bread with your neighbors to bring the community together. For holiday parties, decide whether your HOA will organize catering or have people bring food over like a potluck. If you plan to hold a holiday carnival, you can partner with local restaurants and have them set up food booths.

 

6. Prepare Activities and Games

Having fun is a can’t-miss part of the equation for holiday events. For holiday parties or dinners, hold a White Elephant gift exchange. You can also organize fun games for all ages. Carnivals, on the other hand, will need larger forms of entertainment such as balloon houses and activity booths.

 

Balancing Holiday Planning With Community Management

When done right, HOA holiday planning can be a fun and festive time for homeowners and HOAs alike. Most associations, though, face difficulty juggling community events with other aspects of HOA management. This is where Condo Manager comes in.

Our software makes HOA management easier by automating most tasks and letting you keep up with your social calendar simultaneously. Give us a call today at (800) 626-1267 or contact us online for a free demo.

 

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7 Consequences Of Delinquent HOA Dues

Homeowners are not the only ones who suffer the consequences of delinquent HOA dues. The association itself can face a lot of problems, too. When left unresolved, these problems can spiral and compound until the association is left with nothing to its name.

 

How Delinquent HOA Dues Affect the Community

To understand how delinquencies impact homeowners associations, you must first understand how these communities work. Homeowners and condo associations collect regular dues or fees from members. These associations then use these collected dues to fund the various expenses of the community. This includes everything from common area maintenance to HOA insurance.

It is the job of the HOA board to calculate dues on an annual basis. They do this by anticipating the expenses for the coming year and then dividing the sum required among the members of the community. Given that everyone in the HOA has a financial obligation to pay dues, you can easily see how nonpayment can affect the association. A high HOA dues delinquency rate can spell disaster not only for homeowners but also for the community at large.

 

1. Service Interruption

hoa dues delinquencyWhen too many homeowners fail to pay their dues, it could result in a budget deficit. The association won’t have enough money to pay for necessary expenses.

This can include landscaping services, garbage collection, snow removal, and more. Without these essential services, trees and bushes will start to grow out, trash will remain uncollected, and snow will pile up and obstruct roads.

Homeowners associations also pay for the utilities for each common facility. Clubhouses and fitness centers don’t pay for the electricity themselves. The board uses money from the operating fund, which sources its cash from HOA dues, to pay for all of these things and more. As such, if homeowners stop paying their fees, they can expect service interruption.

 

2. A Drop in Curb Appeal

HOA dues late payment can also negatively affect curb appeal. Associations usually cover the cost of landscaping as well as maintenance in common areas. If an HOA runs out of money, it can no longer pay for these services. This will unsurprisingly lead to a drop in curb appeal.

When bushes and branches become overgrown, they can give the neighborhood an unkempt feel. The same goes for cracked sidewalks, badly paved roads, and malfunctioning street lights. This gives the community a poor image and makes it seem like an unsafe place to live in.

 

3. Poorly Maintained Common Areas

Homeowners and condo associations typically have common areas and amenities that members can use. But, common areas that accumulate dirt and grime will remain that way without money to pay for cleaning. Worse yet, if these areas become damaged, a shortage in the budget might mean having to postpone repairs and replacements. When this happens, residents can’t use them. This is particularly unfair to residents who pay their dues on time.

If the association keeps these areas open even without proper maintenance, it can result in liability. For example, if algae builds up in the pool area, a resident could slip and hurt themselves. In some cases, the association may be found liable for the incident. The same principle applies to malfunctioning gym equipment, improper electric wiring, and poor plumbing systems.

 

4. Increased Dues

When there are many cases of HOA dues non-payment one year, it could push the board to raise dues for the next. Boards usually do this to make up for the shortfall in the budget or to ensure that they meet the budget requirement for the coming year.

Having to increase HOA dues is troublesome for both board members and homeowners. Residents don’t like it when they have to adjust their personal budget just so they can continue paying HOA dues. Meanwhile, board members don’t like having to deliver bad news, especially when it comes to money.

 

5. Special Assessments

A rise in delinquent HOA dues could also bring forth the need to levy special assessments. Boards do this when the association lacks sufficient funds to pay for immediate expenses, but some even charge this for less urgent needs. Many homeowners dislike special assessments because they typically need to pay this sum in one go. On the other hand, associations usually collect regular dues in increments, though some charge them annually.

 

6. Decreased Property Values

hoa dues late paymentIt does not take a rocket scientist to conclude that, when you combine all of the above, property values will naturally go down.

When an association lacks funds to pay for services and maintenance, curb appeal will decrease. And, as many know, curb appeal has a direct relationship with property values.

 

7. Drive Away Homebuyers and Current Homeowners

As property values in a community plummet, the number of interested buyers will decrease as well. Before long, your association will have a hard time attracting new homeowners and even scare away current homeowners. When you have poorly maintained common areas, abysmal services, and high HOA dues, this hardly comes as a surprise.

 

Worst Case Scenario: Bankruptcy and Dissolution of the HOA

Bankruptcy is not something that often happens to homeowners or condo associations. But, that does not mean it will forever remain an impossibility. Under certain circumstances, an association may go bankrupt.

As homeowners begin to leave and properties foreclose, an HOA with expensive dues and unsatisfactory services or amenities can face insolvency. When an association completely runs out of money and members, it can even result in dissolution. All of this would have been avoided, though, if the board simply cracked down on delinquent HOA dues and established methods for collecting unpaid fees.

 

How to Collect Delinquent HOA Dues With Software

Many homeowners associations grapple with delinquent HOA dues. Boards usually find it difficult to collect unpaid dues, especially if homeowners are having financial troubles. More often than not, though, this difficulty stems from a lack of a proper system. With the help of HOA software, you can tag owners as delinquent, generate delinquency reports, send account balances, and follow up on payments.

Condo Manager provides expert collection solutions to homeowners and condo associations everywhere. Call us today at (800) 626-1267 or contact us online for a free demo of our product.

 

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7 Ways HOA Software For Management Companies Can Improve Efficiency In The Workplace

HOA software is not only reserved for homeowners associations. Management companies can also use software to enhance efficiency and productivity within the workplace. Here’s why utilizing an HOA software for management companies is essential.

 

What Are the Benefits of HOA Software for Management Companies?

Everyone needs help, including HOA management companies. While employees are the backbone of any company, there is no harm in investing in added technological assistance. In fact, using HOA software is even beneficial because it can boost efficiency in the workplace.

How exactly can HOA software for management companies help? Let us count the ways.

 

1. Fills in Gaps in Knowledge

HOA management companies are in charge of the day-to-day operations of homeowners associations. Such companies usually employ a variety of workers with different levels of experience and expertise. Some staff members, though, are better trained than others. It is not uncommon for companies to have employees who are not as familiar or well-versed with HOA management.

This is where HOA software comes in handy. HOA software helps fill in any gaps in knowledge because the program is already designed with the specific purpose of managing communities. In many ways, HOA software acts as an extension of the management company.

HOA software comes with a multitude of features, including but not limited to accounting and bookkeeping, work order automation, invoicing and payment, homeowner communication, events management, and financial statement generation. If an employee is having trouble grasping one or more of these subjects, management software is there to save the day.

 

2. Eliminates Redundancies

Companies have long relied on manual operations. For generations, pen and paper have been the main tools workers use to get things done. The problem with this method, though, is that there is a lot of room for error.

People make mistakes. They can create double copies of invoices, process the same work order twice, etc. Not only does this constrict the natural workflow, but it also wastes time and valuable resources. If no one catches the error, the company may even end up losing money.

But then came the information age, and advancements in technology made it possible to digitize most business processes. With HOA management software for management companies, you can say goodbye to redundancies. A software is built to be smart, which means it is not as prone to committing errors. Plus, it certainly works faster.

When you’re done processing an invoice, HOA software will tag it as such and prevent you from processing it again. Similar work orders won’t pile up, and you can consolidate requests of the same nature into one.

In addition to eliminating redundancies, software also prevents deliberate mistakes borne out of criminal intent. It’s much easier to cook the books when you’re doing it manually as opposed to using software. In that way, HOA software also helps prevent fraud and other forms of financial dishonesty.

 

3. Automates Most Tasks

Management companies spend too much time working on repetitive and tedious tasks. This includes administrative or back-office tasks such as managing events, organizing file systems, and processing paperwork. These tasks, though, can be easily automated with the help of HOA software.

Once automated, these tasks won’t require as much time or energy from your employees. You can also schedule some tasks to complete themselves according to a calendar, such as sending monthly notices of dues, meetings, etc.

 

4. Easy to Learn

man teaching his co-worker | hoa management software for management companiesA common pain point among management companies is having to spend time and resources on employee training.

Not everyone picks up on things as quickly as you would like them to, especially when it comes to skills that typically take months or years to develop.

However, the same can’t be said about HOA software for management companies. HOA software normally boasts a shallow learning curve, making it easy for employees to grasp and become proficient in. These programs are intentionally designed to be user-friendly, only taking a few clicks to complete an entire work process.

 

5. Tailored Access

Management companies are typically privy to the data of HOA communities and the homeowners that live there. This includes names, addresses, contact details, account balances, and even banking information. When you work with sensitive information, you need to have internal controls that will guarantee nothing gets leaked or misused. That way, you can live up to the promise of financial integrity and protection that you make to your HOA clients.

The great thing about HOA software is that it allows you to do just that. HOA software readily comes with access and permissions, letting you adjust what employees can view, create, edit, or delete. You can also limit certain information, especially those that are confidential in nature, to only a few users. With such controls in place, you and your clients can rest easy knowing all your data is safe and secure.

 

6. Lets You Manage Multiple Communities at Once

Homeowners associations have it easy because they only have to manage their own community. On the other hand, HOA management companies have to deal with multiple communities that come in different forms and sizes.

Back in the old days, this would have meant organizing each community’s information manually into separate filing cabinets or folders. But, HOA software makes everything simpler.

HOA software lets management companies manage several communities simultaneously. You can separate communities by portfolios but manage them all from a single platform. It is also fairly easy to copy key information from one community to another, allowing you to set up new clients with just a few clicks.

 

7. Increases Productivity

Can HOA software for management companies increase productivity? When you add all of the above together, it is easy to see how.

Enhanced productivity is the natural outcome when you allow HOA software to fill in gaps in knowledge, eliminate redundancies, and automate tasks. Everything described here contributes to a more efficient workplace. And, when your workers are more efficient, they become more productive. Not only that, but they can produce higher quality output and promote client satisfaction.

 

The Answer to Your Efficiency Problems

Investing in HOA software for management companies is a proven strategy that can supplement employees, boost efficiency, and raise productivity. But, not all programs are made equal. Some are easier to use than others, and then there are those that lack essential features.

 

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What Is An HOA Lien? What Does It Mean?

It is important for homeowners associations to utilize collection actions when members default on their dues and assessments. This is where an HOA lien on the property comes in handy.

 

What Is an HOA Lien?

Homeowners associations operate using a membership format. When someone buys a house in an HOA community, that person automatically becomes a member of the association. That means they will now have to abide by the association’s rules, which include fulfilling member obligations. One of these obligations is to pay regular dues to the HOA.

The dollar amount of dues can vary from one association to another. It can even change on a yearly basis depending on certain budgetary factors. What does not change across all HOAs, though, is that owners are obligated to pay these dues. The association will then use these payments to fund various expenses related to maintaining the community.

So, when does an HOA lien enter the picture?

When there are payment obligations, there are bound to be nonpayers. Homeowners might default on their dues for any number of reasons. And while there are a handful of actions an HOA board can take to collect these unpaid dues, an HOA lien is perhaps one of the most effective.

Simply put, an HOA lien is the association’s legal claim on an owner’s property. Liens make it significantly harder for a homeowner to sell or refinance their house since they cloud the title. But, an HOA can also choose to initiate foreclosure proceedings after filing the lien.

 

How Does a Homeowners Association Lien Work?

Typically, a lien will automatically attach to a delinquent owner’s property. Sometimes, though, an HOA will need to record the lien with the county recorder’s office. This serves as a public notice of sorts, proving that the lien, in fact, exists.

In addition to the unpaid dues, the owner may also need to pay other fees related to the lien. Though, this can change depending on the association’s governing documents. Additional costs can include any late fees, attorneys’ fees, and interest.

After the owner satisfies their debt in full, the HOA will then need to record an HOA lien release with the county recorder’s office. The timeframe will depend on state or local laws, though associations generally have 21 days to file this release and send a copy of the release to the homeowner.

 

What Comes Next? Homeowners Association Foreclosures

Most of the time, the mere existence of the HOA lien is enough to scare delinquent owners into paying their debts to the association. Other times, though, the association must take it one step further. This often means foreclosing on the lien to satisfy the debt.

An HOA lien foreclosure works, in most ways, like your standard home loan foreclosure. If state laws and governing documents permit, associations can even foreclose on a home that has a mortgage on it. There are two methods of foreclosure — judicial foreclosure and non-judicial foreclosure.

  • homeowners association lienJudicial Foreclosure. This type of foreclosure normally takes more time and work as it requires the HOA to go through court. Using this method, your HOA will need to file a lawsuit and obtain a court judgment against the homeowner. This judgment will allow the HOA to sell the home to satisfy the owner’s debt.
  • Non-judicial Foreclosure. This type of foreclosure only requires your HOA to follow state-mandated foreclosure procedures. Using this method, there is no need to go through court. Therefore, it is much easier.

Keep in mind that some states place specific limitations on when HOAs can foreclose. For instance, California Civil Code Section 1367.4 only allows associations to foreclose if unpaid dues reach $1,800 or are at least 12 months old. It is important to familiarize yourself with your own state laws to avoid liability. You can also consult an attorney for guidance.

 

What Happens After Foreclosure?

Some HOA boards feel apprehensive about foreclosing on an owner’s home because they believe that the first mortgage will then fall under the association’s responsibility. But, this is a common misconception. Even if the first mortgage remains on the property after the HOA assumes ownership of the property, the mortgage does not transfer to the association. The homeowner (or borrower) is still liable for the mortgage since it is their name on the promissory note.

Most of the time, the borrower will stop making mortgage payments, though they may have already stopped long before the foreclosure. When this happens, the HOA can either continue paying the mortgage (though it is not required to do so) or allow the first mortgage holder to foreclose. It is common for HOAs to choose the second option because it usually means you get to welcome a new paying member into the community.

 

What Is a Homeowners Association Super Lien?

If an HOA forecloses on a home, its lien holds priority over all other liens and encumbrances. This is usually the case for most associations according to state laws or their governing documents.

But, there is an exception to this rule. In most scenarios, the HOA lien on the house does not hold priority over the first mortgage or deed of trust recorded prior to when the dues turned delinquent. As such, the first mortgage lien will remain attached to the property even after the HOA forecloses on the home.

In some states, though, the homeowners association’s lien receives priority even over the first mortgage. This is what is referred to as an HOA super lien. With a super lien, the HOA’s lien holds priority over all other types of liens, subject to certain limitations. For instance, in Nevada, nine months’ worth of unpaid dues receive super lien status.

If an HOA lien holds super lien status, foreclosure sale proceeds will first be used to pay the owner’s debt to the association up to a certain amount or months’ worth of unpaid dues. The first mortgage holder will then receive the remaining proceeds from the sale. Any surplus funds after that will go to junior lienholders.

 

Making Collection Efforts Easy

An HOA lien is a useful collection tool that permitted homeowners associations can employ. Understanding the ins and outs of liens and super liens, though, can prove to be a challenge. Sometimes, the best way to minimize delinquencies is to make payments more convenient for members.

This is where Condo Manager comes in. Using HOA software, members can settle their dues online or via ACH draft. Your HOA board can also easily track delinquencies and generate analytics. Call us today at (800) 626-1267 or contact us online for a free demo.

 

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ACH Payments for HOA Dues: Should Your HOA Accept Them?

There are many homeowners associations that accept ACH payments for HOA dues. But, that does not mean it is the right choice for everyone. Should yours do the same?

 

The Thing About ACH Payments for HOA Dues

Paying dues is a common pain point among homeowners living in HOA-run communities. Although there are some that use a quarterly or annual setup, homeowners association payments are typically made on a monthly basis. This makes both making and collecting payments a bit of a chore, especially if you still use physical checks. Homeowners must mail in their checks, while board members must deposit the checks every month.

To make payments more convenient for everyone, many associations have turned to electronic methods such as ACH. What are ACH payments? ACH, which stands for “automated clearing house,” is a method that processes transactions between financial institutions with the help of an electronic network.

Here are some key traits you must know about ACH payments:

  • They work with both direct debit and credit transfers.
  • There are different processing times, playing in the range of 2-5 days.
  • They typically come with transaction fees, though lower than standard credit and debit card transactions.
  • Billing still requires authorization.

 

Can Your HOA Require ACH Payments for HOA Fees?

ACH payments are relatively easy to set up. All you need to do is coordinate with your bank and obtain certain bank information from homeowners.

The problem, though, does not lie in whether or not you should accept ACH payments for HOA dues. Given how convenient they are, if owners want to pay using ACH billing, your board should definitely consider making it available. The real problem lies in whether or not you can (or should) require ACH payments.

Making ACH payments mandatory is dangerous territory. Depending on where you live, certain state laws may prohibit an association from forcing owners to use ACH billing. There have also been cases where an HOA would allow owners to pay quarterly if they use ACH but annually if they use traditional checks. Be careful with such a setup because it may not be permitted by state laws or your governing documents.

Additionally, the topic of ACH payments naturally brings up security concerns. Homeowners may feel unsure about giving their bank information to the HOA if there are no security measures in place. All in all, requiring ACH payments is not a good idea, though you can consult your attorney to go through your options.

 

The Rise of Money-Transfer Apps

ACH payments for hoa feesTechnology has made it significantly easier to transfer money from one account to another. Money-transfer apps, in particular, have gained popularity because of their lower fees, ease of use, accessibility, and speedy transfers. But, can an HOA use money-transfer apps like PayPal and Venmo to collect dues?

It depends on where you are. State laws and your governing documents may or may not allow it. Even if your association is permitted to use money-transfer apps, there are a few points of concern you must address.

 

Surcharge and Transaction Fees

Many money-transfer apps charge fees either for each transaction or as a regular subscription. It is important to establish who will shoulder these fees — the HOA or the homeowner. If the HOA will pay it, then you won’t get the full dues amount. On the other hand, you may face opposition from owners who refuse to cover the transaction fee, which they may view as an additional cost on their part.

 

Security

As with ACH payments for homeowners association dues, money-transfer apps can also have problems with security. Accounts can be hacked, and the burden of security rests with a third party (PayPal, Venmo, etc.). Does your HOA board trust the security measures of these apps?

 

Access

Money-transfer accounts should be controlled by multiple people from the board — not just a single person — to prevent theft. This is true for ACH payments as well. Additionally, if your HOA chooses to use money-transfer apps, make sure to create an account for the association. Never use personal accounts.

 

Problems with Using Board Members’ Personal Accounts

As touched upon previously, board members must never use their personal bank or money-transfer accounts to collect owner dues. There are many problems that can arise out of using personal accounts.

For one thing, it is not secure. Because only one person has access and control of the account, it is very easy to manipulate the funds. This makes your association vulnerable to fraud and embezzlement. Even if the board member handling the account is very honest, your board should not risk even the perception of impropriety.

There are also some states with laws against this. For instance, in California, Civil Code Section 5380 prohibits commingling association funds with another party’s personal funds. Therefore, your HOA should always have its own association account.

Lastly, there is the issue of continuity. God forbid, if something happens to the person with sole control over the account, the board would have a hard time gaining access to the HOA’s funds. An association account, though, typically requires multiple signatories. But, you should make sure to change signatories when there is a change in board members.

 

Automating ACH Payments for HOA Dues With Software

If the homeowners in your community are willing to make ACH payments, then you should certainly consider offering it. After all, it is a convenient payment method for everyone involved. You can make it even easier, though, with the help of HOA software.

HOA management software allows owners to link their bank information to their resident accounts. From there, you can process ACH drafts with only a few clicks. Let the software automatically generate a NACHA upload file, which you can submit to your bank to process the payments.

 

Get With the Times

Given how technology has evolved in the last decade or so, convenience is something that many owners expect in their HOA communities. Electronic methods are the future (and present) of payments. And while you can make use of money-transfer apps (which have their own points of concern), another way is to accept ACH payments for HOA dues. ACH payments tend to have lower fees and can be largely automated with the help of HOA software.

If your homeowners association is in need of the right management software, Condo Manager is the way to go. Aside from ACH drafts, our software comes with a variety of modules designed to help manage communities. Call us today at (800) 626-1267 or contact us online for a free demo.

 

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