6 Common Expectations of an HOA Board

By Michael Madson, MGM Management

The biggest failure for HOAs originates from the lack of meeting basic responsibilities and expectations. If your association is experiencing issues, such as people who don’t pay their dues or seem to always violate basic rules, then it is common to look upward at your Board’s leadership. These concerns, if not addressed, may expose all homeowners to higher assessments or the possibility of a lawsuit. And, chances are an HOA’s failure is the result of a Board member’s inexperience, ignorance or failure to use resources or a personal agenda that made them run to be on the Board.

1. The expectation of collecting dues from all homeowners.
Collecting association dues can be a daunting task, especially if some homeowners are reluctant to pay them. As a Board member, it is their duty to collect fees in a timely and professional manner, without fear or favor. This can potentially become contentious when the Board has to confront a long-time neighbor. High delinquency rates can impact your association’s cash flow and hinder your HOA.

2. The expectation to review and share the HOA’s financial records.
There is an expectation of Board members to closely watch their association’s spending and to demonstrate fiduciary responsibility with their association.  Far too often, associations experience fraud in some way or another.  In order to prevent this, accounting for every dollar spent helps to assure homeowners that their money is going towards their best interest and prevents fraud amongst your association. To avoid the risk of financial mismanagement, a third party service is recommended and used as an unbiased service to meet financial expectations.

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