When you purchase a condominium, a single-family home, or a townhouse in a planned development you should be aware that you would be required to pay HOA fees for upkeep and maintenance of common areas or the shared extensions. However, it is essential to know whether or not the HOA you are about to join is the right one for you. A well-run association can make a world of difference for a community. This article explains some of the factors that will help you to know whether the HOA you are about to commit yourself to is the right one for you. As our many happy HOA residents can tell you, City Property Management as an HOA management service in Flagstaff that always brings the best results.
Management
Any organization with poor management is a recipe for inconvenience in your life. Before embarking on joining any HOA, it is crucial to carry out your survey and determine whether they have the right management practices in place. Just like any business, you want a highly-rated manager with a diligent HOA management company behind them. It is crucial to read and understand the governing rules of the HOA you are about to join. Usually, there are many pages, but the CC&R’s contain most rules for the community and are important to review. A healthy organization should have reasonable regulations that are favorable to its members.
Proper Insurance and Communication
Considering the insurance summary of the HOA is essential. Review the extent and the risks they insure. An association should have ample insurance in case of structural damage or a lawsuit. Also, a good HOA should always keep their members updated at all times through various available channels. The communication could be through newsletters, emails, bulletins or the organization’s website.
Financial Factors
Great HOAs have clear financial plans to ensure the community is run smoothly. They should have transparent, reasonable budgets, which should mostly increase year after year reflecting the rising cost of living. The company should also have an organized system of their members and the records indicating their contributions over the years. There should also be records showing when the last assessments took place. Make sure you read thoroughly the documents provided on the HOA reserve funding disclosures. You don’t want to join an HOA that is collapsing tomorrow! A great organization makes its plans ahead depending on the previous financial projections, the current economic state of the organization, and a prediction of future projects or large repairs. If the HOA has been performing terribly in the past financially and still suffers from the same failures currently, this can be a warning sign for the future.
Choosing the right HOA is one-step towards comfort in your investment. It is essential to make all the necessary considerations before committing to joining any HOA. The factors above will significantly help you in deciding the right HOA for you. Find out more about our HOA management company in Flagstaff
