Serving on Your Association’s Board – Scott Roth, CMCA, AMS

Serving on Your Association’s Board

Serving on your HOA’s board comes with immense responsibility, but it can be one of the most rewarding things you could do as a homeowner. Not only can you improve your experience as a property owner, but you can also make some long-term positive changes that benefit future property owners.

Here are some of the biggest reasons you should consider joining your association’s board.

You Can Help Correct Problems

If you know that your association has recurring problems like noisy neighbors or not enough parking for visitors, joining your association’s board can help you correct any problems in your community.

As a board member, you will also be the person other owners come to with their problems. If you are a natural problem-solver, a position on the Board may be the right volunteer opportunity for you.

Help Your Community Meet Overall Expectations

You likely volunteered for your board because you were unsatisfied with how the community has met your expectations. You want your association to live up to the expectations owners have when they buy into your community.

As an association board member, you have the power to work together with your neighbors and create the utopia your community set out to be.

Learn About Association Laws and Finances

Volunteering for your HOA board allows you to work closely with local laws and finances. Approaching these items with an open mind and willingness to learn will make you a better leader.

With an  at your side, you have direct access to legal and financial counsel. They will guide you through essential processes that give you a greater understanding of managing an association’s legal and financial hurdles.

Elevate Your Community with a Team

Working with your association board means improving your community as a team. Everyone on the board brings unique skills to the table to make your association better.

As a board member, you aren’t on the journey alone. Working together will ensure the right improvements and decisions are made at the right time for your community.

Build Your Leadership Skills

Finally, volunteering for your association’s board can help you build your personal leadership skills.

As a board member, you’ll have to lead your fellow property owners and guide them toward making the right choices for your community.

From speaking at board and member meetings to approaching an owner face to face to discuss a regulatory issue, your experience on the Board will give you the knowledge and confidence you need to approach any responsibilities in your life with an air of leadership.

 

Preparing for Budget Ratification Season – Avonlea Geisbert, Office Manager

Our office is currently buzzing with preparations for our associations’ Annual and Budget Ratification meetings! Typically, homeowners only get to see the ratification meeting, and none of the behind-the-scenes planning. How does your management company prepare for your ratification meeting?

Community Manager Preparation

Your Community Manager will begin the process by scheduling your ratification meeting, updating your reserve study if needed, reviewing any audits, etc. Your Community Manager will also consider any vendor contract increases and utility increases for the following year. Your CM will then draft a budget for board review in our system, Caliber. (Our managers typically disappear into a budget-preparation cave during this time, not to be disturbed, only surviving off sheer will!)

Board Adoption

Once a draft of your budget is created, it is emailed to the board of directors for review. Your CM will take the time to advise the board of ratification timeline requirements, explain the reserve fund status, and recommend funding plans. Once the board approves the final budget, the CM will request a reserve study disclosure from the reserve study provider, if applicable.

Budget Notice and Ratification

Upon board approval, your CM will schedule a venue/Zoom meeting within the ratification timeline restrictions. A notice is drafted and carefully proofread by designated proofreaders at our office. Per WCIOA, the budget ratification notice must include detailed information regarding the budget, including any assessment increases, date assessments are due, special assessment information, etc. Mailers for larger associations (250+ units) require special planning with our mailroom clerk to ensure they are sent out on time.

Your CM or board of directors will typically prepare a presentation for the ratification meeting. During the ratification meeting, owners can vote to approve or disapprove the budget in person or by proxy (proxy forms are sent out with the notices and can be found on the Portal). Unless a majority of the association membership votes against the budget, it will automatically be ratified. Non-answers are counted as an approval.

Post-Ratification

The budget has been ratified, but there is still work to do! Your Community Manager will report to the accounting department any changes in assessments, whether your association will use statements or coupons, and any special assessment information, if applicable. Our accounting team will then prepare a notice of increased assessments out to the membership, along with updated account statements.

As you can see, months of careful planning and drafting goes into preparing your association’s budget. Homeowners are encouraged to participate in the process by attending the budget ratification meeting or submitting votes by proxy. If you have any questions regarding your association’s budget, feel free to reach out to our office at info@vismanagement.com or 800-537-9619.

 

Benefits of a Homeowner Portal – Scott Roth, CMCA, AMS

Association leadership should always look ahead to how their services can best benefit the community as a whole. One of the biggest improvements to an association that can easily be forgotten is upgraded technology for overall association management.  An online portal is an excellent step in this direction.

Convenient Payment Options

One of the biggest reasons homeowners love online portals is that payments are now as simple as the click of a mouse. Portals make paying fees and dues a convenient process that eliminates the need for envelopes, stamps, and above all, time.

Residents Receive Quicker Response Times

Sometimes maintenance emergencies happen and residents need a fast way to relay a message to association leadership. Online maintenance requests make it simple for owners to get in touch and report their maintenance issues and continue on with their day.

The portal is also helpful because management can easily document and track orders, while also effectively overseeing the project and keeping owners informed via portal access.

Transparency Becomes Simple

No homeowner wants to have to wait for account information to come to them after a request. Usually, information like use restrictions or payment amounts and due dates are things that an owner would want to view instantly and on their own time.

An online portal makes transparency a priceless amenity for association members who wish to view their private information. Association documents, or financials at the moment they need it.

Boost Your Association Technology with VIS Group

Our management team believes in making your association the absolute best it can be. We utilize the latest technology to ensure that your leadership and homeowners are able to efficiently communicate and easily make association information available to any homeowner.

Tips to Recruit Board Members – Scott Roth, CMCA, AMS

VIS Group Management holds board members in high regard. The Community Association board is made up of volunteers, and these individuals care about your neighborhood. Your board is a pillar of the community with the ability to improve your neighborhood and make living there the best it can be.

The selection of the appropriate candidates is essential when it comes to adding new board members. Here are four things your board may do to assist in selecting the ideal candidate to be a new member!

Inform the Community

Reminding potential board members that their community board exists is the greatest method to pique their interest. Many individuals believe that the board is an anonymous body that makes decisions concerning the neighborhood remotely (or worse, they think that the management company is the one that makes the decisions).

Actively participate in your neighborhood and make sure your homeowners are interested. You can inform your homeowners by sending them periodic newsletters or memoranda that:

• Discuss the status of an ongoing project.

• At the following meeting, invite them to raise questions.

• Introduce the board members to any homeowners who may not be familiar with them directly.

Ask your association management for assistance in providing answers.

Your community is going to have a lot of inquiries regarding the procedure, what your board needs, and what your board is in its whole once you’ve raised the need for new life on your board.

Spend some time brainstorming an approach to addressing these issues with your association management staff. You want to make sure that each response is consistent, instructive, and most importantly, motivating to potential board members.

Encourage homeowner talent-based action

Some of your neighborhood’s homeowners may have the skills needed to fill some of your board’s specialized demands. Your board will require management assistance with regards to bookkeeping, building, gardening, technology, and other areas. It is possible that those with the necessary skill sets already live in the area and may be willing to help make your community shine if you make your needs known to the locals.

Turn Dissatisfaction into Action

There may occasionally be people in your community who “lightly recommend” a lot of things to the board. While some people would interpret this as whining, the board ought to view it as an opportunity for future hiring. All these recommendations are made to the board in an effort to enhance the neighborhood. Invite your committed neighbors to join the team and contribute to the improvement of your community. A proactive, considerate presence on a board or even a committee is always crucial.

 

Late Payments

What happens when a homeowner pays his/her dues late?

First of all, you need to understand that HOAs rely on timely payments to cover expenses for a specific period of time. It could be as simple as monthly utility bills, landscaping services, common area maintenance, management services etc. Timely payments are especially critical in the beginning of every budget year, when operating funds, which could be used as a buffer, are at its lowest.

Every HOA has a specific date provisioned to receive payments from homeowners for a specific period it could be an entire year, a quarter, or a month. Each association also gives a grace period in case homeowners are not able to make their payment on time. Using this grace period on a regular basis is not recommended. If a homeowner sends his/her payments too close to the end of a grace period, there is a big chance the funds will reach destination too late and could cause a delay in payments for utilities, or other services.

Very often board of directors or HOA managers receive upset phone-calls or emails from delinquent homeowners stating that it is unfair to charge any fees only because a payment came in late. Let’s say the Board or the manager decides to waive the fee, part of it does not disappear and someone still has to pay for accountant services, assistant services, mailing charges [in case a delinquency letter was mailed to a homeowner]. All these charges become HOA’s responsibility and are paid from operating funds – the same dues that diligent and responsible homeowners pay on time. Let’s say delinquent charges are only $35.00 and consist of $25.00 Late Fee and $10.00 Administrative Processing Fee. Only Late Fee in this case is negotiable and could be waived without any loss to the HOA. Is the Association hires a professional management company, an Administrative Processing Fee covers services being provided to the HOA. For a homeowner, it may seem like waiving such a small amount should not be that big of a deal. However, if we take it to a bigger scale and say that 10 homeowners were late with their payments, and in this case, you are the one who is never late with payments. Why should your money be used to cover $100.00 worth of services accrued because of your neighbor’s irresponsibility? Everyone would agree that it would be better to use extra funds to improve common areas, organize community events or hire a better vendor for a specific project instead.

Finally, I would like to mention that everyone understands that “life happens” and unpredictable circumstances may occur to any of us. If you know that you will be late with your payments, please do not hesitate to contact your board of directors and your management company (if applicable) to see what options they may be able to provide for your particular case. I am sure they will help you come up with a plan to go through your hardship. I hope this article helps someone see a bigger picture and make someone aware of consequences of late payments.