Financial Risks of Choosing an Unproven Management Firm

Consider the financial risks of hiring unproven association management firm

With the recent changes in the U.S. housing market and the rise of online real estate platforms, many less experienced real estate agents and brokers have shifted their business from real estate sales to condominium and homeowners association management. While some smaller, unproven management firms may have a great sales pitch, there are potential risks associated with smaller, less experienced, and less financially secure management firms that could have a major impact on your community association, such as:

Impartial Manager Fiduciary: A small management company will have fewer HOA managers, and they may be overly reliant on one or two managers, who may also be principal owner(s) of the management firm. It is important for the community manager and firm to have an independent relationship for the continuity, transparency, and efficiency of the HOA operations. It can also take time and resources for less experienced managers to learn the specifics of the HOA and establish a reputation and rapport with the board and the homeowners. Does the smaller firm have the experience, financial backing, employee recruiting opportunities, and insurance coverage to survive and guide your association through any financial or disaster situation? If the smaller firm had a financial setback, would your association be impacted? It is important to understand the financial risk you are taking as a board member of your association.

Lack of Communication: An unproven management company may not have enough staff or advanced systems to respond to the HOA’s queries or concerns in a timely manner. This can lead to frustration, misunderstanding, legal issues, and mistrust between the HOA and the management company.

Low-Quality Vendor Services: A less experienced management company will not have a rigorous vendor selection process or a wide network of reliable and reputable insured and licensed vendors. This can result in low-quality or overpriced services for the HOA and a lack of independent financial oversight of the relationship between the management company and the vendor. The ethical issues can also carry over to the Board of Directors and affect the long-term maintenance and financial strength of the community and insurance coverage. All three items can have a detrimental impact on the resale value of homes within the association.

Inadequate Accounting and Reporting: A small management company may not have the expertise or the technology to handle the HOA’s accounting, reporting, and Human Resource needs. This can result in errors, discrepancies, or delays in the HOA’s financial statements, which can affect the transparency and accuracy of the HOA’s financial health.

Risk of Income Loss: A smaller management company may not have the skills or the tools to manage the HOA’s cash flow, collections, and reserve funds. This can result in a decrease in revenues or an increase in expenses, which can affect the HOA’s ability to fund its operations and capital projects.

Risk of Fraud, Theft, or Embezzlement: Last but certainly not least, a smaller, less experienced management company will likely not have the proper safeguards or controls to prevent or detect fraud, theft, or embezzlement of the HOA’s funds, including from online cyber security threats. This can result in a significant loss of money or assets, which can damage the HOA’s reputation and financial stability. We have helped many associations over our history that have had funds stolen from smaller management companies leaving the community in financial shambles. CMA has the experience and resources to help any association recover, but it can take years to fill the hole which will impact the resale values and insurability of the association.

These are just a few of the possible financial risks of an HOA going with an unproven management company. However, not all management companies are the same, and some may provide excellent service and meet the needs of your community. It is important for the board to do its due diligence and research before hiring any management company, regardless of its size. The board should also monitor and evaluate the performance of the management company and its insurance coverage and licensing regularly, and communicate any issues or concerns as soon as possible to reduce the financial impact on the association.

CMA has the expertise and resources to help guide your association through any crisis or loss. As the largest community association property management company in Atlanta, Alpharetta, Augusta, Dunwoody, Peachtree City, Roswell, Birmingham, Fairhope, Nashville, Destin, Santa Rosa Beach, and Naples, we are here to help your community thrive.

What Makes CMA a Great Place to Work?

Community Management Associates (CMA) is a company that specializes in helping community associations thrive by providing over three decades of management and hiring expertise. If you love helping communities and being part of a great team, join CMA as an association manager and boost your community association career today.

Our Background

Dan Henning and Dennis Hoffman established CMA in 1989. What started as a company with 7 Associations and only four employees is now a full-scale enterprise with over 1,100 Associations located throughout the southeastern United States. CMA has local offices in Georgia, Florida, Alabama, and Tennessee. We currently have 150+ state-licensed association managers working across the southeast United States.

Why should you work for CMA?

CMA has made its mark as a distinguished leader in association management for the past 35 years by offering continuous innovation and training to our team. When it comes to property management careers in Atlanta, Birmingham, Nashville, Augusta, Destin, and Naples, CMA is an industry leader that attracts the best and brightest leaders in association management.

Robust credentials

CMA is a part of the Community Associations Institute (CAI), Chamber of Commerce, and other licensing entities in the southeastern United States. CMA has also been ranked as the top association management firm in Atlanta by the Atlanta Business Chronicle for 20 years in a row.

Employee benefits

CMA employees boast of the benefits that they receive from their company. Some of these are:

Medical/Vision/Dental
Life & Disability Insurance
Flexible Paid Time Off
Volunteer Time Off
Company Sponsored 401K

Fostering positive work culture

CMA prioritizes a healthy work-life balance and believes that employees can only work to their full potential if they lead a happy life outside of the office. CMA strives to makes sure employees feel supported, encouraged, and satisfied with their jobs. For this, CMA offers flexible PTOs and telework opportunities.

CMA seeks to cultivate a work environment that inspires new ideas and supports highly motivated individuals to be truly successful. Employees are valued for their talent, while their differences are acknowledged and accepted. CMA also ensures that employees have a respectful attitude towards varied perspectives.

As a CMA client, our dedication to employee training and benefits means that your association has access to highly-trained staff that feel a sense of community in their workplace, which resonates in their behavior while offering services to their clients.

Inclusive employment practices

CMA is an equal-opportunity employer. This means that CMA considers employee applications irrespective of the person’s race, color, religion, sex, sexual orientation, gender identity, nationality, veteran, or disability status.

What are the positions available at CMA?

Community Association Manager – responsible for allocating resources to ensure the management and support of community associations under the guidance of CMA.
Compliance coordinator – responsible for enforcing restrictions imposed in the community’s memorandum regarding maintenance, architectural specifications, and the guidelines established by the homeowner’s association.
Accounting – The financial services team keeps financial transaction records and the general ledger for accounts payable, and receivable, and adjusting journal entries.
Administrative Assistant – By providing internal and external customer service, the Administrative Assistant assists the Community Association Managers and our client associations.

Click here to find the positions available at CMA today.

What Makes CMA Different?

What makes CMA different?

If your community is considering a new community association management company, as the leader in association management throughout the southeast, Community Management Associates may be the solution your association has been searching for. Our core values of loyalty, integrity, trust, mutual respect, and professionalism have helped us become trusted leaders in the industry. Client satisfaction is our primary objective, and we are willing to go the extra mile for all our valued customers. We actively participate in the communities we serve to make a difference from within. Choose CMA and get the level of service your community deserves.

Unmatched expertise!

CMA belongs to several chapters of the Chamber of Commerce, the Community Associations Institute in Georgia, Florida, Tennessee, and Alabama, and many other licensing organizations in the southeast. Our community association managers meet or exceed the state licensing and certifications requirements in every state we serve. They have the professional skill set to help communities thrive. The PCAM designation is awarded to the top managers that specialize in community association management. CMA is proud to hold the highest number of PCAMs of any association management company in the region. Our experienced managers have advanced skills to tackle any situation that comes their way. We make it a point to assign communities to managers based on geographical proximity so the community receives the best possible service and our managers spend less time in traffic!

How do we ensure excellence?

CMA hires talented state licensed community association manager professionals who are willing to innovate. We focus on the combined strengths of the team as a whole, allowing everyone to share their new ideas and initiate valuable collaborations. Not only will your community have access to your assigned association manager, but each community association manager is also supported by our client services team and a supervising manager to assist residents and board members as needed. CMA also offers after-hours emergency call service to handle emergency calls during non-business hours. CMA is always available for your community. We are always looking for inventive, highly motivated professionals interested in community association management to join our team. Find your career with CMA.

We offer a wide range of services!

One of our main strengths at CMA is that we offer customizable service solutions to meet the unique needs of each community. Whether your community needs full service with concierge staff, financial only or developer management through the turnover process, CMA can customize a solution for you. We know that every association has its distinctive characteristics, and we want to preserve those details and character. We strive to ensure that you are proud of your home and community by offering a wide range of services. Whether you need help for property management in Atlanta, August, Birmingham, Nashville, Destin, Santa Rosa, or Naples, we are always here for you. Our customer service is ready to answer your calls. Some of our popular services include:

We help Homeowners Associations operate smoothly so they can maximize their resources and keep the community financially secure.

Training for new board members.

Our team of talented managers will be able to gauge the needs of the community preemptively. CMA will handle all communication efficiently to ensure that your owner residents are heard.

Accurate and transparent association accounting of financial records is vital to community association management. Our in-house financial experts will provide you with 24/7 financial visibility so you know how your association funds are being handled. Newer or smaller management firms with less oversight and experience can’t provide your community with the same financial peace of mind as CMA.

We can help you with payroll, assessment collection, annual budgeting, special assessments, capital improvement loans, insurance reviews, annual contract reviews, and many other important association functions.

You can contact us here!

Boosting Neighbor Participation in HOA/Condo Meetings

Homeowner engagement is one of the main pillars of a strong community. Existing and new homeowners need to be involved in the community and participate in HOA meetings often. HOA meetings are an essential part of community association management, as they allow the board of directors and homeowners to communicate, make decisions, and resolve issues that affect the community for years to come. Participation in HOA meetings is important for both the board and the homeowners, as it ensures that the community’s needs and interests are represented and addressed timely.

Participation in HOA community meetings is encouraged and sometimes required by the governing documents. Board members and homeowners have the right and the responsibility to attend, speak, ask questions, and vote at the meetings, as appropriate. Participation should be respectful, constructive, and relevant to the agenda items. Virtual participation can help increase engagement due to everyone’s personal responsibilities. With virtual participation owners are give the option of attending and participating in HOA meetings remotely, using technology such as phone, video, or online platforms. Virtual participation may be allowed or required by the governing documents, the state law, or the board’s discretion, depending on the circumstances. Virtual participation should follow the same rules and etiquette as in-person participation, and should ensure that the meeting is accessible, secure, and transparent.

As more homeowners begin to participate in HOA meetings, you will be able to collect feedback and create a well-managed community. If you are looking to boost attendance at your HOA/condo meetings, you can use the following tips.

Welcome the new homeowners

Many homeowners like to be formally welcomed into the neighborhood. It helps them recognize the role of the HOA in the community. You can send a welcome package curated by the HOA, so the new homeowners feel welcomed. Make sure to include items that feel personal to your community. Setting up a Welcoming Committee is essential to program consistency.

Host social events

Neighbors need to meet each other and establish camaraderie to create a thriving community. HOA meetings will see higher attendance when the neighbors feel as if they are doing something together for the community. Organize a few social events throughout the year so that homeowners in the neighborhood get a chance to get acquainted.

Widen the scope for participation

The prospect of simply attending meetings might not be appealing to many. You will benefit from providing them with an incentive to attend the meeting. Consider the broader interests of the community and how the residents can actively participate in decision-making. Creating volunteer committees will provide homeowners an avenue to engage with the community further. Committees allow everyone to share the responsibilities and have regular interaction.

Depending on the activities and interests of the board, you can start a Neighborhood Welcome Committee, a Landscape and Beautification Committee, a Homeowner Education Committee, a Finance & Budget Committee among others. This will help to foster a sense of community and responsibility which will increase participation in HOA meetings since everyone will want to stay updated in regards to their committee.

Regular communication

The HOA has to maintain regular communication with each of the homeowners to keep them engaged. Social media and emails have made it so much easier to broadcast information and keep everyone in the loop. You can issue a notice about the next HOA meeting and include the time and date so that more people are aware of it. Keep improving your communication methods. Working with a community manager at the leading professional community association management company in the southeast can alleviate the administrative burden on board and committee members. Make use of the advanced technology and web portal solutions that Community Management Associates has to offer every client.

Be punctual and respect everyone’s time

A board meeting should begin and end at the specified time. Homeowners like to know how much time they will be spending at the board meeting so they can arrange their schedule accordingly. Shorter and crisper board meetings will see higher attendance. If you develop a reputation for disrespecting everyone’s time, then homeowners will be less likely to get involved in the proceedings.

Reward engagement

Once the attendance of your HOA meeting goes up, you have to maintain the efforts. Show appreciation for the attendees so they continue to show up.

Boosting neighbor participation in HOA meetings will lead to new ideas and transparent community improvements. CMA can offer our decades of experience and resources to help encourage participation for a stronger HOA or condominium community.

In summary, community association management participation in HOA meetings is a vital aspect of maintaining a healthy, harmonious, and successful community. By following the rules and guidelines for HOA meetings, board members and homeowners can ensure that the meetings are productive, transparent, efficient, fair, and that the community’s best interests are served. For more information on improving community association management participation in HOA and condominium meetings, please contact Community Management Associates. CMA offers decades of experience as the premier association management company in Atlanta, Alpharetta, Dunwoody, Norcross, Peachtree City, Augusta, Birmingham, Fairhope, Nashville, Destin, Naples, and Santa Rosa Beach.

See how Community Management Associates can help your community increase owner participation for your community association. Request your customized community association quote today.

What Does a Community Management Association Company Do

What Does a Community Management Association Company Do?

Ever wondered why your cul-de-sac was so peaceful growing up? No fights, clean lanes, friendly neighbors- your local community association probably had something to do with all this.

Local Community Associations

Neighborhood homeowners play an essential role in maintaining common spaces and improving community welfare.

A community association comprises volunteers, as well as elected and mandatory members. Larger communities often have member fees, while smaller neighborhoods are mostly civic bodies.

When to Hire a Community Management Association Company

With an efficient community association at the helm, people don’t easily notice things like property taxes or association fees and vendor rates. It is when this system breaks that they realize the importance of their roles in their daily lives.

In dire cases, a community management association company is called to help oil the gears of this resident community.

Role of the Community Management Association Company

It offers assistance to the HOA (homeowners association) in administration or finance. This service helps the community association a great deal. More prominent neighborhoods benefit particularly from the budget sessions and vendor billing tips that the company associate provides.

Community management association companies have been around for some time. Businesses like Atlanta’s Community Management Associates have over three decades of experience.

They are usually hired by overworked community presidents or stressed boards of directors. And after signing relevant paperwork, the company starts on its role.

Role of Community Association Company Manager

A community association manager is dispatched to the neighborhood as a representative. The manager also helps the struggling local association in tasks like neighborhood budget planning, professional billing and common area maintenance.

While his roles may include finance and administration, his goal is always to enrich the entire community.

Finance and Administrative Skills

The company manager is skilled in community management while being an expert in negotiations and conflict resolutions. If the board of directors are hesitant about loan applications, they can consult with the community association manager.

The same can be done for advice on tax returns, service contractors and venue management.

All good community management association companies interact with the people of the neighborhood. The residents provide crucial feedback on necessary changes for protection against vandalism or the monthly billings.

Importance of Community Management Association Company

A neighborly bond is a valuable thing, but it can be a con in some instances. Community volunteers and the board of directors are often reluctant to broach the topic of finance with their fellow residents.

Hiring the service of a management company like Community Management Associates can easily solve this problem. A third party will have no problem talking bills, fees and finance with the neighborhood residents.

Even tricky conversations regarding complaints and fines can be presided over by the community management association company. The manager relieves an enormous load off the community president/board’s back. As a result, they can focus on more important work like budgets and community safety.

Hiring a community management association company is the answer if you want your neighborhood to work like well-oiled clockwork.

A Day in the Life of an Association Manager

Don’t you hate having to argue with your neighbors? Hiring a professional management company can help keep the peace among neighbors!

The main task of a licensed community association manager with a professional community management company is to assist the board with the day to day operations and maintenance of the community and provide financial transparency to its members. Managers also help residents by taking calls, emails, handling property emergencies, and maintaining the standards of the community by sending out compliance communication to residents. Life as an association manager is full of rewards and many challenges!

Who is an Association Manager?

Community managers and management companies are the professional backbone of the associations they serve, providing the skills and expertise that are essential to the successful management of community associations. When neighborhood associations face problems or wish to improve the conditions of association common areas, they look to hire a professional community management company that is licensed by the state. Community Management Associates assist community volunteer board of directors in matters of finance and administration related to the association.

Community Management Company Associate Manager: A Day in the Life

Associate managers have a broad spectrum of roles to fulfill in the community neighborhood. They take care of everything from solving petty misunderstandings to drafting the annual budget for the community so the board can finalize. Any feedback or complaints is quickly brought into consideration or resolved. But among their roles, community finance and neighborhood management are their primary areas of work.

Management Work

The maintenance and renovation within the community fall under the responsibility of the associate manager. If a roof leaks or a pipe break, he is the first individual the resident contacts. The manager is always patient and actively work towards solving the problem in such cases.

Their service also includes acting as a mediator between residents and service vendors. The manager also has to resolve any conflict that may arise between them. Bill delivery, repair of communal areas, health inspections and venue organization are the other areas they must handle.

Financial Work

The essential financial roles that the associate manager must fulfil are maintaining community funds, registering bills, and sharing tax histories. Sometimes, the boards of directors involve them in brainstorming the annual community budget. In such cases, the manager may assist in formulating loan applications to meet the financial needs. Regarding accidents with the residents in the community, the insurance company usually contacts the company manager for deeper insight.

Tough Love

Juggling bills and answering phone complaints are not the only thing an associate manager handles. Maybe it’s that guy from B-3 who plays rock at the oddest hours, or perhaps it’s the gentleman who always keeps the gate unlocked- there are times when the residents need a bit of tough love. These are the moments when associate managers come in most handy. For the community directors and the board, these people are neighbors and acquaintances. These community association members live next door to these people. Any harsh language and chastisement can lead to a detriment in the relationships. Therefore associate managers from companies like Community Management Associates are hired to do the tricky bits.

Simply informing residents about the rules or scolding them is not professional. All good managers have excellent interpersonal skills that open up communication. They must make residents aware of their mistakes while still maintaining a good relationship for the sake of the future.

End of Day

As a result, an ordinary day of an associate manager is anything but boring. Things don’t get slow in the block, from meeting contractors for repairs to putting out sudden fires to simply having a stimulating conversation.

The Top Property Management Essentials

Did you know that the U.S. property management industry generates over $88 billion USD in revenue every year?

Atlanta property management isn’t simple. You need to monitor every property, answer every request, and more. Being a good property manager is a prominent challenge but understanding where to start is a huge advantage.

Whether you’re starting out or want to improve, understanding the essentials of property management is key. Today, we’ll explain what you must keep in mind if you want to make your—and your tenants’—live easier.

What exactly is a good property manager?

Not all property managers are good, and that’s easy to expect. There are too many variables in the field. Properties, spaces, tenants, and commodities are filled with factors that could go wrong in any moment.

The best property managers aren’t born. They come from experience and preparation. That takes time—maybe even years. Understanding these three characteristics of the best Atlanta property management today can help you become a good property manager.

Knows their properties

You can’t be a good property manager if you don’t know what you’re managing. Every property presents a plethora of variables that you need to track.

The easiest way to become a better manager is to invest in modern software. You can monitor maintenance, requests, and other management realities.

Is certified

Good Atlanta property management requires certifications. You’ll learn indispensable knowledge and techniques while having a certificate that shows your preparation.

Good certifications include property management, construction- and utility-related certificates, and similar skills. The same is true for renovations, administration, and more.

Understands marketing

Finally, any property manager needs to generate profits from their assets. That’s the entire point of the field, and marketing is how you attract this income.

For property management, listing websites are the most common approach. However, you can also market your management services on social media and similar platforms.