There are many issues that many Homeowner Associations and Boards face on a regular basis. Let’s take a moment to review the 3 top issues that exhibit the most contention.
1. Property Management Company does not have credentials and licensing.
In a lot of states, fewer than 20% of homeowner associations are taken care of by a management company. Worse yet, across the country, less than 10 states mandate management licensing. An association needs to be very careful and assess and consider many credentials like membership in the Community Association Institute (CAI), Certified Manager of Community Associations (CMCA), Real Estate Licensing along with experience, and also referrals.
Virtually all states have some form of Real Estate Commission; nonetheless; very few states have agencies or departments with homeowner association oversight duty. Those states that do have oversight battle between concentrating on the large concerns and impacting legislative change. They are often swamped with individual complaints regarding board choices, bad management practices, agreement offenses, as well as assessment concerns. Commonly, they have little enforcement power and can only offer suggestions about the best course of action to someone. Property legislation and the enforcement of HOA disclosure – including an association’s governing documents, can differ greatly.
2. Homeowners like to sue – technically themselves.
Practically every association has been (or will be) sued or filed a suit at some point in time. Having the appropriate amount of insurance written in a homeowner association policy to protect directors as well as residential property possessions is necessary.
Boards go to the courts in order to legally collect assessments, penalties, and to enforce the agreements. At the same time and on the other hand, the community seldom has the funds and/or legal power to combat a rogue board member or homeowner. Legal fees can cause expenditures in the thousands. It is essential to carefully pick your fights.
Besides as a homeowner, when you sue the community you are also litigating against yourself. Don’t be surprised when your neighbors begin to dislike you. It is much better to resolve issues in a friendly manner.
3. Homeowners become complacent.
Sadly, most homebuyers actions make it seem like they are more interested in paint colors than to the homeowner association. A homeowner association member’s actions can ultimately make the difference in residing in paradise or living in the neighborhood that has no cohesive unity or direction.