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.

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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.

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Fall Landscaping Ideas for HOAs

With fall’s agreeable temperatures enticing people to get outside, now is the perfect opportunity to refresh your neighborhood’s landscaping for a more visually appealing and welcoming atmosphere. Read on for information on what to do before tackling a project and a few simple fall landscaping ideas to boost the appearance of your community.

Any homeowners’ association (HOA) or condominium association (COA) strives to create a warm and welcoming environment where residents can make the most of community living. An inviting community encourages homeowners to take advantage of shared amenities, engage with neighbors, and enjoy the comforts of their neighborhood after a busy day.

What to Do Before Tackling a Landscaping Project

Before diving into these fall HOA landscaping ideas, review the landscaping rules in your governing documents for prior approval before making any changes to your landscape. Your community’s regulations will help you maintain your community’s consistency and avoid designs that disrupt the neighborhood’s aesthetic. For example, your HOA may require all landscaping to follow an approved color palette. This ensures that outdoor areas around the community are cohesive and complementary.

Because every community is unique and has its own style, following your HOA’s landscaping maintenance guidelines is vital. Remember, what works for a neighboring association may not be best for yours. Use your HOA rules to guide you as you look for new fall landscaping plants, flowers, and other ideas for community grounds.

Once written approval is obtained from your community, put the project out to bid with reputable and vetted licensed and insured service providers. Once a contractor is selected, make sure the contractor is aware and follows all community guidelines. Whether you are hiring a professional contractor, or tackling the project yourself, prior to starting any work, find out if your project needs a local county permit and call 811 to locate and mark all underground utilities prior to any digging.

Fall Landscaping Ideas for HOAs

By making small changes around the neighborhood, you can quickly—and easily—transform how your community looks and feels. Here are four ways you can take advantage of the season and enhance the community’s overall aesthetic.

1. Outdoor lighting.

When it comes to fall landscaping, simple lighting updates will make a big impact. Better outdoor lighting can have a dramatic effect on outdoor landscaping, help you save on energy costs, and make the community safer. Here are some ways to upgrade your exterior lighting:

Set lights to a photocell sensor or solar timer. These devices automatically turn lights on when it gets dark and off when extra light is unnecessary. They not only save energy, but also enhance safety and security—nothing looks more inviting than well-lit streets.
Stay on top of replacing bulbs. Changing a single bulb at a time can be costly, so have all bulbs inspected and replaced as needed this fall. This will typically allow you to purchase bulbs in bulk, providing a savings opportunity.
Switch to energy-efficient lighting. The pricing and quality of light-emitting diode (LED) and solar lighting have significantly developed over the last decade. To save on energy, consider migrating to LED lamps in your existing fixtures or replacing them with solar lighting.
Add uplights and spotlights in outdoor areas. Beautiful outdoor lighting highlighting community trees, fountains, and other landscaping features can instantly boost curb appeal and security.

According to the National Association of Home Builders (NAHB), a nationwide survey showed that homebuyers’ most-wanted outdoor feature was exterior lighting. With such an important emphasis on lighting, upgrading your HOA landscaping lighting may be worth the effort.

2. Plant trees.

You can easily add to your community’s ambiance and increase property values with trees. With fall’s mild temperatures and ripe soil, now is the perfect time to plant them. However, the placement and size of trees are crucial. Although you should incorporate a balance of plants and trees, confirm the species and types don’t grow so big that they overcrowd and block homes or buildings. Plant trees that offer minimal fall landscaping maintenance and draw attention to community structures and shared areas.

Depending on your location, popular tree types that may be a great addition to your community include:

Crabapple trees
Magnolia trees
Oak trees
Palms

In addition to improved community appearance, research shows that neighborhoods with thriving trees may also experience less crime than communities with no trees. While you should check your governing documents for restrictions and defer to your landscaping vendor on what trees work best in your community, it’s something to think about as you move forward.

3. Tidy up and clear out foliage.

Preserve community grounds and ensure that common areas don’t have overgrown grass and unkempt landscaping. A property that looks like it’s not taken care of can leave a bad impression on potential homebuyers and limit resident satisfaction. Make an effort to keep neighborhood grounds tidy by:

Trimming trees and bushes
Cutting grass and tending to garden beds
Clearing out broken or dead branches and rotted wood

4. Refresh mulch.

Maintain plants in common areas throughout the season with a thick layer of mulch. A three-inch layer can drastically reduce weed growth, which will save on the cost of fall landscaping services. Also, healthy mulch offers a crisp, clean, and refreshed look to your community landscaping, which helps create the beautiful environment you want for your HOA.

However, avoid piling mulch up against tree trunks and shrub stems. This allows pests to burrow under the mulch and gnaw on the plants and roots. Leave at least an inch gap between the stem or trunk and the mulch for optimal plant health.

Improve Community Living with Regular Fall Maintenance

Updating your landscaping this season is a great goal, but keeping your community’s buildings, grounds, and systems in good working order this time of year is crucial as we head into winter. If you have any questions about your community’s guidelines, please contact your association manager.

Are You Unhappy With Your Community Management Company?

Working and living with a management company is a complex matter. It can bring peace of mind because you can forget about complex administrative duties. However, it can also cause more stress than it should.

The main reason why the latter is a common occurrence is improper practices. A bad management firm will create more problems than it solves. Thankfully, you’re not alone, and there are a few things you can do to solve that.

What are the most common complaints about community management companies?

There are many articles going through the staple complaints people have toward their management company. A simple Google search yields several results, but some are definitely more common than others.

If you’re unhappy with your association, chances are it’s because one or more of these reasons. If that’s the case, then we have good news for you; they’re easier to solve than you might think.

Lack of communications

The most common complaint people have from their management company is that they feel like they don’t care about them. That’s easy when the company doesn’t respond to inquiries and requests in a timely manner.

Delays in problem resolution

Property management is complicated, as you need to keep many variables and services in mind. Bad tactics result in problems going unresolved and homeowners feeling neglected. Most commonly these problems are quick to fix, but inefficiency prevents that.

Lack of respect toward homeowners

Dealing with a community is difficult, and management companies can deplete their patience quickly. The result is that they tend to treat everyone rudely, even those who didn’t present any issues before.

Maintenance inefficiency

Maintenance problems are the easiest way to make an unhappy community. Not only does it feel like neglect, but it also makes the entire residence look deteriorated. Even smaller problems add up quickly.

Bad vendor selection

Finally, not hiring the right vendors breeds a plethora of other issues. Poor results and sketchy staff makes the board lose the community’s trust, so having a good contacts database is vital.

What can you do about it?

We’ve helped several clients resolve their issues with their management company. Most of these cases came from the same roots: choosing the wrong company and a lack of communication.

The latter is easily the most important, as it can also exacerbate other problems unnecessarily. Therefore, we have three tips from our own experience for how you can rid yourself of that stress.

Screen your management company

Make sure you ask for previous references and evaluate the company in the areas that you care about the most. That’s the first step to guarantee community satisfaction from your management company.

Communicate with everyone

Any good company has the right communications channels set up. Going for a firm with plenty of options to get in touch with them should be a priority if you want to avoid issues.

Set clear rules

Make sure everyone knows what they’re supposed to do, both the company and homeowners. Transparency and compliance helps in keeping everyone happy.

How To Proceed With Caution: Reopening Community Amenities

States are starting to lower lockdowns and social distancing regulations. That’s mostly good news, but it’s bred new concerns regarding how to reopen installations for property management. Many firms are starting to provide insight into how to do so.

Community amenities are one of the most common issues brought up in these tips. They’re some of the most important spaces in building management. However, they also enable crowding and security concerns.

Proper communication is vital

The most important first step when planning a reopening approach is to communicate with everyone. That includes your property management staff as well as residents within the residence.

Therefore, make sure you share every strategy with everyone. Luckily, modern property management software enables messaging and notifications. You should leverage these features as much as you can.

Report your plans

You want everyone to stay on top of every information available. You want to share schedules, renovations, and plans. Doing so helps the entire process to run smoothly without compromising your community’s safety and comfort.

The most important reason behind this need is to avoid disruptions. You don’t want people to crowd as soon as your community amenities reopen. Remember that easing restrictions doesn’t mean the pandemic is over. You still want everyone to remain healthy.

Strategies for reopening amenity spaces

The National Apartment Association has an outstanding article about reopening public spaces. They provide vital guidance and recommendations for building management to streamline the entire operation.

Now, the article also touches on office spaces, but community amenities are our main focus. Property management is responsible for ensuring security while residents start to go back to their daily lives.

Clubhouses

You need to clean your clubhouses if they’ve been unoccupied for more than a week. Thankfully, the virus hasn’t been proven to survive for more than seven days.

However, you should still limit crowding in these areas. Make sure you don’t allow for enough people to compromise proper distancing during events.

Fitness centers

Your fitness center can actually benefit your community’s overall health. When reopening, you want to focus on cardio areas, which help cope with the virus’ symptoms.

The most important method to reopen gyms and similar installations is to set strict schedules. You want to make sure people can exercise without crowding.

Swimming pools

There’s no evidence suggesting that COVID-19 can spread through water. Proper maintenance also helps to inhibit the virus’ transmission in these areas.

However, you still want to avoid people crowding in pools. Like gyms, pools can benefit residents’ health, but schedules and social distancing must be implemented.

Outdoor spaces

Outdoor areas are some of the least problematic amenities for building management. They’re already excellent to avoid crowding, but proper maintenance is still required.

Pay closer attention to installations prone to crowding. Those include playgrounds and courts.

Laundry rooms

Finally, laundromats are vital for homeowners to keep their hygiene, but they’re prone to overcrowding.

Guarantee proper maintenance and disinfection before and after their reopening. Create strict schedules to limit how many people use the space as well.

The Top 5 Restaurants in Nashville

Now that lockdowns are loosening up, most of you are probably excited to go out. Undoubtedly, many will want to head out to grab a bite after months of cooking yourself or asking for delivery.

Well, that’s why we’re looking at 5 of the best restaurants you can visit right now in Nashville. You might want to grab a bite or find great examples of property management in Nashville. We have you covered.

The Mockingbird

The Mockingbird is an American food restaurant in The Gulch. It’s easily one of the most interesting options in Nashville thanks to its floor geometry and its entire design. If you don’t feel like redecorating after visiting it, you might need help.

Its personality is also incredibly charming. With dish names like Don’t Worry, Brie Happy, you’ll have a great time at this restaurant. Its ingredient combinations are also quite unique. It’s quite difficult to pick a wrong dish.

Loveless Cafe

If you’re in the mood for a nostalgia trip, the Loveless Cafe in Bellevue is for you. It’s been around since 1951, and the homely feel has remained intact throughout the years.

They’re famous for their amazing biscuits, with thousands of sales every day. However, their other dishes, like their chicken and ham, are amazing options if you have a big appetite. Just make sure to try their biscuits if you haven’t.

Mas Tacos Por Favor

This Mexican restaurant in East Nashville is a charming option. If you have cash on hand, Mas Tacos Por Favor offers some of the best tacos you’ll ever try.

All their dishes are amazing, so don’t worry about picking specific food. If you’re exploring this side of town, Mas Tacos Por Favor is a great stop.

Otaku Ramen

Otaku Ramen, in The Gulch, is the first ramen-only restaurant in Nashville. Since its aperture in 2016, it became famous as the go-to if you want some good ramen.

You can find traditional dishes, like mazerman and chicken ramen. However, they also have great Southern-oriented dishes, like Tennessee Tonkotsu. If you’re thirsty, you can also visit the bar in the back.

Puckett’s

Finally, Puckett is the best choice for people who want to see some live music while enjoying their meal. It’s in Downtown Nashville, and it serves some of the best BBQ and burgers you’ll find.

It actually started being a grocery store with an added stage. However, it quickly turned into a popular venue for live music every night. It’s definitely a masterclass in property management in Nashville.

Affordable Housing in Nashville

Affordable housing is among real estate’s most demanded markets. It provides a lifesaving solution to many people. Amid COVID-19, affordable housing saw one of the largest increases in demand as well.

However, it’s a common headache for property management in Nashville—and everywhere else. It’s still a solid business investment for any company, but that’s not the problem. It requires managers to track multiple variables, factors, and compliances.

What does affordable housing mean for management companies? What can you do to make your life easier? That’s today’s topic.

What does affordable housing mean for property management?

In essence, affordable housing is a program aiming to provide low-income populations with a place to live. While it’s often seen as part of Section 8 clauses, they’re not the same. In essence, affordable housing is a tax incentive for real estate firms.

It strives to motivate cheaper rental prices that people with lower salaries can afford. Property management in this sector isn’t too different to other markets, but you need to keep several issues in mind.

Certification

You can’t give a property tour and have residents move in the next day. You must be sure that your applicant is a low-income resident. Therefore, you have to request their employer’s payment information, lack of child support, and more.

Re-certification

The same certification process will repeat itself after your initial lease completes. You’ll have to go through the same steps to assess whether or not your tenant still qualifies for affordable housing. Make sure to start at least three months and study self-certification possibilities.

Compliance

It’s vital to comply with every rule within your program. Failing to do so yields costly consequences to the tax credit holder. Keep in mind that too many mistakes can result in the government revoking your credit claim.

Insight for affordable housing management

NeighborWorks America published a detailed research paper on affordable housing. We highly recommend you to read it if you’re interested in the implications behind the program. However, it’s an extensive document that goes through several topics not related to our focus.

The most curious section for our current concerns is the implications they point out for property management. Of course, you need to research and educate yourself on all the nuances we mentioned already, but these three tips can make a huge difference for your company.

Communicating with nonprofits

Engage with nonprofits you work with during annual budgeting. You want to assess their goals and the criteria they care about for the property’s long-term success. Therefore, you can focus on the most important issues for owners.

Remembering it’s still a business

Property management in Nashville should still care about operating budgets and the property’s returns. Economic inviability nullifies any contributions your company can make to a community, especially when the necessary resources can’t be allocated due to budget constraints.

Proper staffing

Finally, make sure you work with high-quality personnel. That’s one of the main challenges because of how it’s difficult to offer competitive salaries when working with affordable housing. Therefore, invest in constant training and create reward programs for employees.