HOAs can’t run on their own. They need great board members and dedicated residents to stay on top of the day-to-day duties; otherwise, your community could be at risk of falling through the cracks. How is your self-managed HOA performing, and what questions should you be asking to determine where you’re performing well and where you need to improve?
To conduct a performance audit, begin by asking the following questions.
- What does our pool of board members and potential board members look like?
Board members have a lot of responsibilities, and their duties may involve some complex tasks that require a lot of attention and care. Do you have board members that are dedicated and can be impartial and make decisions that benefit the community as a whole? Are the members in your community active and willing to get involved? This is important in determining if it will be difficult to find someone to take over a vacant board member position.
- What do your financial records look like, and are they being monitored closely?
The financial records paint a very clear picture of your HOA and will be where you turn when it’s time to make important decisions for your community. Think about it, when a point is raised, isn’t the first question that’s asked is, “do we have the funds for it?” Your board needs to be aware of the funds coming and going each month. Make sure that your board can handle the tediousness and intricacies of your HOA’s finances.
- Is anyone advocating for the residents?
Conflicts between the HOA and the residents are inevitable. The HOA board can come across as tone-deaf and tyrannical if it’s not doing a good job of listening to its residents and understanding where they are coming from. Be conscious of your actions and make sure that residents feel heard as you don’t want to damage the community spirit.
- How are your board members feeling?
As workloads grow, board members can experience burnout. This increases the risk that something will fall through the cracks or that a board member will leave their position, sometimes very unexpectedly. Check-in with your board members and see if anyone is feeling stressed or overwhelmed.
If your self-managed HOA is starting to struggle or is simply in need of a little advice, contact Prism Realty Management. Give us a call at 512-676-5842 — we’d be happy to talk to you about who we are, the services we offer, and our process.