Suggestions For ways the HOA's have enhanced values

HOA's do NOT raise the values of homes or property. That is a misnomer. Home values are based on real numbers. That is what houses of similar size/options have sold for in 6 month period within a few mile radius. It also factors in the number of foreclosures and short sales. Location is also a factor in home values.

HOA' s are to make their homes more ATTRACTIVE to potential buyers by having amenities and neatness. Example of this is that I can decide NOT to buy a house because it is in a HOA. Does that make the house less valuable? No. It just makes it less desirable for me to purchase. One can evaluate home value based on why one does not purchase a house. You based it on why someone does.

Allyn,

When you say value what exactly are you referring to? Financial value, aesthetic value, risk value (by making sure things are done correctly), property values, etc. all have different meanings.

Ways to decrease expenses are simple:

1) ensure preventative maintenance is done as this can minimize corrective maintenance (which typically costs more).

2) Always get bids for all contracts (even the property managers). Even if the association likes the contractor they are currently using, getting bids can keep costs competitive if the contractor knows you will be soliciting bids every contract renewal.

3) Don't recommend the lowest bid, recommend the best bid. To determine the best bid, check references, physically drive by and look at work done, etc.

4) Make sure you comply with applicable statutes, as this will minimize the risk of legal actions or the need to redo something because a procedural step was missed.

Creating revenue streams:

1) You don't. That isn't the function of a property manager unless the Association also has commercial property or is leasing amenities to the general public. If you have a proper budget and consistent collection efforts, then you wouldn't need to have additional revenue streams.

2) Be consistent on collections efforts. We do the following: 1st notice, 2nd notice, certified notice, notice of item placed on agenda, lien. We have been fortunate and have not had to go past informing the individual of the item being placed on the agenda except where the individual was also behind in the mortgage and other bills.

3) Be considerate. When warranted, be willing to waive late charges. The goal is to collect the assessment due not to collect additional funds above what was expended to collect the initial assessment. Every year, with the Boards authority, I will waive the first late charge on anyone. The members seem to be grateful if it was just a moment of forgetfulness.

Property Values:

As others have said, you don't affect them directly. The only things Associations can do are:

1) Create curb appeal by enforcing the covenants consistently and equally and ensure landscape contractors are doing their job properly. Curb appeal can attract buyers to the development.

2) Be fiscally responsible by having a reserve study in place, pay bills on time and make sure operating expenses and the reserves are fully funded. This will ease concerns of lenders which may aid in a potential buyer obtaining a loan they can afford to buy the house.

3) Ensure the association is in compliance with the governing documents and all applicable laws. This minimizes the risk of potential legal actions.

let me count the ways:

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AllynM,

I think this is a fair question because, in my opinion, a great percentage of HOA boards are filled with well-meaning people who have no training or no opportunity to learn on the fly (or aren't willing to do the homework).

As a property manager:

1. Be very very responsive to all dues payers, homebuyers and real estate agents who make good-faith inquiries about the community. It doesn't cost a dime and gives the impression that the community is well-organized, excellently managed and stable. (Given the joke answers on this thread, a lost potential home sale because the HOA and its representatives act dopey when the buyer is riding around in "browsing" mode is true lost value to the seller)

2. In the winter, when nighttime lows dip below 50 degrees (F), we set our pool pumps on timers where it circulates water from 11pm to 7am rather than 24 hours per day. During pool season, we must run the pumps 24/7, but this winter rotation (it rarely gets so cold as to raise serious freeze issues with the pool) saves us a couple of hundred dollars, per month off our utilities.

3. It would be a nice touch to monitor automatic price increases in your community's multi-year contracts, including your own contract, and notify the HOA board about the percentages and the actual dollars. These cost "elevators" mean your client is paying a higher price for the same service with percentage increases being at a higher rate than general inflation. Vendors should earn new business to boost company revenues but it's the HOA board's job to monitor its costs as best possible.

4. Review the master insurance policy of the HOA and resubmit applications to lower costs for the HOA. These policies can jump 5% annually for no reason other than the calendar changed. Many HOAs don't observe this.

5. Chart actual usage of the pool (if you have one) and adjust the opening and closing dates of the pool season. People like to see the pool open at Easter and close in October....but my HOA can chart a STEEP dropoff of activity after Labor Day. The usage rate is so low, it would be cheaper to give the late-season pool users a voucher to the local YMCA to use the pool for those two months. The off-season versus on-season pool maintenance costs can be 75% different - to the HOA's benefit.

6. Make sure you understand the health and quality of your HOA clients' Reserve Funds. If it's underfunded, learn how to explain the under-funding and what it means as the property begins looking "old" because there's no money to keep amenities updated. Home buyers will certainly note the lack of maintenance and freshness. No, it won't reflect in any closing documents or home price negotiations. I think a bad curb appeal will simply persuade shoppers to move along.

As for creating revenue streams.....the best revenue stream is a solid-paying dues payer base. Follow collections law and retrieve contractually-mandated, core dues payments. On this measure, customer service means representing the solid payers and not be intimidated by non-payer bluster. Stay out of other money-making strategies as it's not within the HOA sphere of sensibility.

Of course, your board must be willing to listen to the professional manager's advice, advice it's paying to hear in part.