How To Start An HOA Management Company
Are you ready to be your own boss, work in an exciting industry, and make lots of money while you do it? If so, being a homeowner association (HOA) manager might be the perfect job for you. The average salary for an HOA manager begins at $49,190 per year and goes as high as $75,823. By starting an HOA management company, you can begin a successful new career helping HOA boards create and maintain a thriving community.
Whether you already have experience with HOAs and you want to create your own management company, or you’re looking for a total change in careers, establishing a new business isn’t always easy. Starting an HOA management company takes hard work and dedication. However, as with any small business, the rewards are more than worth the risks!
If you’re wondering how to start an HOA management company, there are several key steps that will help your business get off the ground. By following these tried and true methods, you’ll be able to establish yourself as a successful HOA manager in any market.
Understand the HOA Industry
First, do your homework and make sure you understand the current climate of HOA management. Even if you already have experience with HOAs, it’s still a good idea to refresh your knowledge and educate yourself about this robust industry.
For example, did you know that there are over 70 million community associations in the United States? Currently, 27% of Americans live in communities with an HOA. Experts project this number will increase to 50% by the year 2040. Since HOAs are on the rise, the demand for association managers will only grow.
As you begin researching HOAs, focus on understanding the rules and regulations for housing associations in your region, as the legal requirements for HOAs vary from state to state or even county to county. Then, make sure you understand how clients benefit from hiring an HOA management company. Learn about the duties that you’ll fulfill as an HOA manager, including but not limited to:
- Collecting fees, paying bills, and generally managing the HOA’s finances.
- Processing work orders and repairs.
- Assisting HOA board members with legal compliance and tax audits.
- Enforcing HOA rules.
- Communicating with residents on the HOA’s behalf.
Get Training or Certification
In addition to educating yourself about the current state of the HOA industry, you may also benefit from job training and certification programs. Depending on where you live, HOA managers may be required to hold specific licenses or management certifications. Online resources such as HOA Leader can help you find out more about this.
Aside from meeting potential legal requirements in your area, training and certification offer several advantages to anyone starting an HOA management company. First, classes and training will make you a better manager. You’ll be able to apply the knowledge you learn to your association management business and deliver better service to clients.
Second, you can use training and certification to enhance your company’s marketing. By listing your qualifications on your website and other marketing materials, you’ll build consumer confidence and attract new clients.
Invest in HOA Management Software
When you’re starting a new HOA management company, you’ll need to budget carefully and invest wisely. However, there are some areas where you can’t afford to cut corners. HOA management software is one of them.
The right HOA management software streamlines your business and helps you handle every aspect of your clients’ accounts. It includes accounting features and turnkey solutions for day-to-day operations. With HOA software like CINC Systems, you can grow your business quickly and manage clients efficiently. For a free demo, (855) 943-8246 to learn more.
Create a Business Strategy
Once you’re ready to take the plunge and start your HOA management company, it’s time to create a business strategy. There are multiple ways to do this, however, most experts agree that your business strategy should include three main elements:
- A Clear Mission Statement. What do you hope to achieve for your clients? What sets your business apart? What does success look like for you, your company, and the communities you serve? A mission statement answers the “who, what, why” of your company.
- Business Objectives. In this section of your strategy, get specific about your objectives. This includes quarterly, annual, and five-year goals for your business. This can also include projected performance metrics, such as new client acquisition and client retention rates.
- Tactical Plan. The tactical plan is the “how” of your business strategy, explaining how you intend to fulfill your mission statement and what you’ll do to meet your business objectives.
Like a map, there may be times where you need to detour from your business strategy, or even change your entire trajectory. However, having a business strategy creates a solid foundation for starting an HOA management company.
Develop Your Brand
Next, focus on creating a clear, memorable brand for your HOA management company. This is an opportunity to explore your creative side. Choose a company name, a logo, and consider writing a short slogan to use in your advertisements.
Before you incorporate as a business, visit your local state or county registrar’s website and make sure your company’s name isn’t already taken, or too close to an existing company. Make sure your HOA management company has a unique name that won’t be confused with another business.
Set Up a Website and Social Media Accounts
After you have a mission statement and a brand, you’ll need a digital presence so clients can find you. Create a website with easy-to-read copy and professional images. If you don’t want to hire a web designer, there are many inexpensive services that make it easy for anyone to create a custom site. Try SquareSpace or Wix.
Then, make social media accounts for your business. This includes Facebook, Twitter, and Instagram. Creating social media accounts gives you another way to reach potential new clients. Your social media accounts will strengthen your existing business relationships, too. Social media is an opportunity to show your clients who you are and why you’re passionate about HOA management.
Related Frequently Asked Questions
- How Can Association Management Companies Working with HOA/COAs Benefit from Association Management Software?
- Top 10 Tips When Managing HOA Accounts
- How Association Managers Benefit from CINC’s Accounting Software
- What Is Association Management Company Accounting Systems?
- Is My Association Management Accounting Data Safe When Using Software Tools?