Board Resources

Tailgate parties are a beloved American tradition, bringing friends, neighbors, and sports enthusiasts together to celebrate as one. Whether you’re a seasoned tailgater or a newbie, this guide will walk you and your board through the steps to create a memorable event that fosters community spirit and camaraderie among your neighbors.

Planning and Preparation

Start by selecting the game that works for most homeowners in your association. You can determine this through a quick survey that you can send out to all of your homeowners through a tool such as the one provided in our HOAst e-voting platform. Next, you’ll want to determine the best location within your community to host the tailgate party. This could your clubhouse, a cul-de-sac, or even a local restaurant close to your neighborhood. You’ll also want to collaborate with your board to make a list of all the supplies you’ll need, including tables, chairs, a grill, coolers, tents or canopies, and sports equipment.

Theme and Decorations

You need to look the part if you’re going to celebrate your team! Be sure that your party is adorned in team colors with tablecloths, balloons, banners, and more. You can also consider adding some fun games around the party area to keep conversations going. Corn hole, table football, pool, and even a few stacks of cards will keep party goers entertained while they’re watching the game.

Food and Drinks

There are a few ways to easily handle food and drink without breaking the bank, especially if your tailgate party is within your neighborhood.

• Potluck Style: Encourage neighbors to contribute to the menu by hosting a potluck-style event. This way, you’ll have a diverse range of dishes, and it eases the burden on the board. You can collect information about what everyone is bringing through your online survey tool, or through messages available in your online portal.
• Grill Master: Set up a grill station where you can cook burgers, hot dogs, and other tailgate favorites. Don’t forget to have vegetarian and vegan options available.
• Beverages: Stock up on a variety of beverages, including soda, water, and sports drinks. You can also ask neighbors to bring their favorite beverages to share.
• Desserts: Satisfy everyone’s sweet tooth with a dessert table filled with cookies, brownies, and cupcakes. Here are some fun ideas to add sporty pizzazz to your desserts!

Entertainment

Obviously, the big entertainment is the game. If possible, set up a big screen or projector to watch the game in style. Don’t forget comfortable seating arrangements for everyone to enjoy. You can also use a tailgate playlist (like this one!) to keep the energy high.

Safety and Cleanliness

This is a topic many forget when planning an event for their HOA/COA. Place ample trash and recycling bins throughout the party area to keep the space clean and organized. Have a basic first aid kit on hand in case of any minor injuries or accidents. If alcohol is allowed, make sure to encourage responsible drinking and have designated drivers or alternative transportation options available, if needed.

RSVPs and Communication

If using a clubhouse or other common area, you’ll want to reserve your location through your amenities booking tool to plan accordingly. Use email, social media, and neighborhood bulletin boards to keep everyone informed and excited about the event. You should also keep everyone in-the-know through your website portal and homeowner app so they’re aware of any updates, what to bring, and if you need any help with setup or take down.

Hosting the ultimate tailgate party for your homeowners’ association can be a fantastic way to bring your community together, celebrate your favorite sports teams, and strengthen the bonds among neighbors. With careful planning, a dash of creativity, and plenty of team spirit, your tailgate party is sure to become a cherished tradition within your community. So, grab your team jerseys, fire up the grill, and get ready for an unforgettable day of fun and camaraderie!

With the inception of The Boardroom podcast, the CINC team looks to shed light on the HOA industry, its key players, how associations impact communities, and how to bridge the gap between homeowners, board members, and management companies. On this series, they’ll chat about everything from alligators and flower control to fee increases and the great misunderstandings about HOA in general, and have some fun along the way.

Shedding a Positive Light on the HOA

In the wake of COVID, pandemic related economic uncertainty has rather strained homeowner relationships with the HOA, and The Boardroom podcast hopes to correct just that. Chatting with CINC teammates, Billy and Kim,  Shea taps into both their experiences and their fresh perspective on the home management industry to help homeowners, board members and management companies unite in a common goal of successful homeownership.

After all, home management associations do so much more than what many people realize. They help homeowners increase their property value, fend off unwanted rodents and animals, and protect their investments. More often than not, their duties pertain to 24/7 service and emergency care. Not only are they a regulatory agency, but they’re also a very helpful resource.

Creating a Stronger Sense of Solidarity

Rarely and sadly, however, does that side of the industry get seen. Going forward, the CINC team will shed light on the more positive side of the home management industry that goes ignored, and correct myths about the side that doesn’t. In doing so, this podcast hopes to create a stronger sense of solidarity between homeowners and their management team.

The CINC team and The Boardroom are here to clarify the narrative, shine a light on the positive, and bring the various stakeholders closer – all while enjoying some laughs in the process . So get yourself in ‘CINC’ with this noble initiative and listen in to this and all future episodes of The Boardroom to help get the ball rolling.

Until next time, enjoy the show!

Full Transcript:

Shea Dittrich: Hey, homeowners! Welcome to The Boardroom, a podcast by CINC Systems focused on how homeowner associations impact your community. From unwanted alligators to flower-type arguments to fee increases, we not only bring these stories to life, but we will provide you with industry best practices on how to tackle and relieve all that stress. Let’s jump in.

Hey, everyone! Welcome to The Boardroom. This is Episode Number One, but it will always be the first episode you should listen to because what I wanted to do is I’ve got a few colleagues in here: Kim, our Director of Marketing at CINC Systems, Billy King, Vice President of Strategic Partnerships at CINC Systems, and myself, Head of Sales at Sync Systems. We have no idea what we’re doing, right, guys?

Kim: No.

Shea Dittrich: Everybody in this room knows podcasts are cool.

Kim: We know that.

Shea Dittrich: But what do we do, right? That’s kind of the way we’ve thought about this. But the reason this episode will be the most important episode that you will listen to is because you’re going to end up listening to these all the time because you’re gonna be captivated by the humor involved in this industry.

But we wanted to share with you the reason that we’re doing this and we wanted it to be unscripted and raw this first time around so you can see how much we’ve learned. But at the end of the day, we did kind of want to share our vision. So, Billy, introduce yourself, tell them how long you’ve been here because I think how long you’ve been here actually matters because all of this came from outside of the space and it’s telling in why we’re doing this?

Billy King: So, I’m Billy King. I’m Vice President of Strategic Partnerships at CINC. I joined CINC two years ago today, June 1st. I’ve got my CINC birthday today.

Kim: My name is Kim. I’m the Director of Marketing here. I thought I joined two years ago as of August, but I joined before you, so now I’m actually not sure when I joined.

Shea Dittrich: When is your birthday?

Kim: My actual birthday?

Shea Dittrich: No, your CINC birthday.

Kim: I’ve had two CINC birthdays.

Shea Dittrich: Well, good. Well, I think that, as I said, I’m Shea Dittrich, Head of Sales and Marketing here and I joined just over two years ago as well. So, collectively, in this room, we don’t have HOA veterans.

The goal of this podcast is to bring you people that had been in this business for a really long time and share with you best practices and things like that. But I think that the three of us, we’re able to come at this as it’s been our life for two years and we can bring an outsider’s perspective into it. And I think the biggest thing for me, and curious and for the two of you as well, I’ve noticed that there seems to be somewhat of a disconnect.

I remember the first thought I had when someone brought up this opportunity to come work here was, ‘It’s the association management industry.’ And I literally said, ‘What?’

I understood what an HOA is, I live in an HOA, but I didn’t realize that this was an entire industry, where there were legislative issues, there were, obviously, you know of the stories and you hear about HOAs. But it’s like, ‘Where does this industry really live?’

In the two years, what I’ve learned is that this is such a stressful job for not only HOA board members, but management companies that are involved.

It’s like the amount of work that goes into ensuring that somebody’s investment in their home is protected and worthwhile becomes very personal. And when it becomes very personal, there are no set hours in this industry.

So, that’s what my biggest realization was: this is an entire industry that unfortunately people can’t appreciate and respect because they don’t see it every day. They don’t see the behind-the-scenes of it. That’s my takeaway. What’s yours? What about you?

Billy King: I think early on the impression that I got about the industry in having conversations with prospects was hearing management companies talk about being really a 24/7 business and they have to be on call for whatever emergency pops up and for day-to-day activities that are there.

I noticed that it’s extremely manual and that the industry was really underserved by tech, and now it seems that it’s not a secret anymore and many, many technology companies have come into the fold. But I think it’s how you approach the business from the management company and board members, and homeowners’ point-of-view.

Shea Dittrich: And how they all connect, right? Like, I’m talking about technology, what about communication, right?

Kim: Right.

Shea Dittrich: The ability to actually communicate helps us understand and appreciate what everyone else is going through. And I think we all realized, man, there’s a lack of communication channels available. And so, you don’t understand what your treasurer is doing. You have no idea what goes into – you’re like, ‘I just write him a check for a grand’, and you think that that’s all that’s involved until you start to really understand everything. Like, what about collection dues? What about collections? What about amenity reservations and things where you have to pay for these amenities and usage?

You’re like, ‘Wait a second’, and then you start to realize, it’s a daunting job my treasure has, and you might gain a little bit of respect and appreciation for what they do. What about you?

Kim: I think one of the most interesting things right now is as you take a look at the way the industry is going – we just did this state of the industry report – and one of the biggest takeaways that is a big concern across board members is that homeowners have gone through this huge shift between the pandemic and economic uncertainty, and all that, and now they’re becoming a lot more hostile, if you will, than normal.

There are a lot of conflicts, and people aren’t sure how to resolve this new conflict and anxiety and tension. So, I think having an open forum like The Boardroom, where we can talk about openly and candidly how we can work with our homeowners better, to really be focused on building community, not just having back and forth arguments. That’s really one of the big goals of this.

Shea Dittrich: Yeah, exactly. As you were saying that, I was thinking about the pandemic induced – and I don’t want to over-talk about the pandemic – however, you look at the things that have happened and still, as so many people do work from home, you think about the number of hours spent at home versus before.

And we’re talking about Homeowners Associations, and my brother-in-law and sister were just in a situation in their condo where they’ve got their condo, and they put their office in this extra third room type of thing, and on the other side of the wall, are the storage units that you can also buy, depending on however that works within the condo association. And one of their neighbors took, behind that wall they took this almost like a closet for your storage and set up their home office because they didn’t have room in theirs. And so, he’s doing his work and, on the phone, on the other side of their wall, I mean, it’s turned into this big thing.

So, I guess that’s the point, right? These are the stories that we actually think can be fun. It would be really easy to listen to an association and an HOA and be like, ‘Oh, that’s boring’. It is not boring. And I think over the last two years, the three of us have collectively learned that.

And so, our goal – and that’s what we wanted to share, our goal in doing this is actually to help homeowners, to help board members, and help management companies all kind of unite against one common cause, which is improving the experience for a homeowner because, at the end of the day, it’s all of our own investments.

So how do we do that? We do that through – obviously, people want to live in a tighter community, people want to know that the value is increasing because there’s protection around certain things. Like, how do we make sure those things are fostered? And if they are, then we’re all better for it as there are 70 million Americans that own homes within an association like this.

So, it’s not a small industry. It’s a big industry, and we’ve got to quit talking about it like it’s small. I think that’s really what our goal is. We spent all that time talking about, like, what we were going to do, but we didn’t really tell you who CINC Systems was. We’re the largest provider of software in this space. That’s what we do. That’s what we’re good at. But we’ve got good people that have provided our clients and homeowners visibility into this whole process and we just want to take this to another level, and be able to share what those experiences are. And I think this is going to be a lot of fun.

We’ll talk alligators as we said, we’ll talk flowers as we said, but then we’ll talk about some serious issues too and the best way to resolve them where people really are in a pinch. We hope that our customers and ourselves can help you come to answers that obviously make this whole community experience an improvement.

So, Billy, thank you. Kim, thank you. They’ll jump back in, I’m sure periodically and be involved in this. Otherwise, it’d be my crazy self just picking up the phone and calling some folks and talking about some subjects – it’d be a lot of fun.

So, until next time, Episode Two.

Kim: Thank you.

Billy King: Thank you

A lot has changed in the past two years, especially in the housing industry. While the rental industry has received much of the attention, homeowners’ associations have also been deeply impacted by the pandemic. In this article, we will cover the emerging HOA trends every board member and management company should know for 2022 and beyond.

HOA technology leads the way

Homeowners’ association software has made running a community association easier for many years, but the adoption of HOA technology is on the rise more than ever. Overall, consumers want faster, more convenient service – and homeowners are no different. They are consumers after all. During the height of the pandemic, everyone was concerned about safety. The use of technology, such as an online portal for paying dues and communicating with HOA staff, provided the safety homeowners and HOA and property management staff needed. HOA software gives you the tools to simplify administrative tasks like processing payments and repair requests from homeowners. It also alleviates some of the burden of handling violations and reviewing HOA documents, while providing homeowners a way to manage their account wherever and whenever it’s convenient for them.

Budgeting is paramount

Homeowners’ associations aren’t designed to generate profit. They exist to pay the association’s bills – like insurance premiums and utility bills for common areas such as hallways and courtyards. The good news is that the expenses are usually consistent. The bad news is that if there aren’t sufficient funds to cover them, things can go south.

While budgeting has always been one of the key tasks of HOA boards, it’s now even more important. With delinquencies in fees and assessments, HOAs must get creative to shore up their reserves. Here are some strategies that might work for your association, if you have the need to make some cuts:

• Consider cancelling or delaying non-essential repairs or improvements.
• When contracts are up for renewal, shop around for better pricing.
• Cut back on services and expenses that aren’t critical to maintaining the property, at least temporarily.
• If you have emergency reserves, consider using them if allowable in your covenant.
• Consider investing in an HOA app or property management software that provides a live snapshot of your financial health with daily reconciliations.

HOA recordkeeping is more important than ever

Keeping good HOA records goes hand-in-hand with the heightened importance of budgeting. Homeowners expect faster communication, so that means HOA staff need immediate access to HOA records and documents, as well as be well-versed in HOA policies, CC&R’s and state and local laws so that they can quickly answer homeowners’ questions and concerns.

And in a time when many HOAs are experiencing delinquencies, establishing a “paper trail” of communications is critical. Good record keeping is also important in the event there is staff turnover or an HOA board member resigns.

Homeowner engagement grows in necessity

With greater access to HOA staff – and vice versa – the lines of communication have improved and will continue to improve. Everyone’s way of life was impacted in the past two years, and in some ways, it brought communities together. Residents became more involved and invested, and some communities, like the boards at RISE Association Management, worked together to make masks and help immunocompromised residents get their groceries. Now is the perfect time to build on this foundation and set the tone for the years ahead, especially as homeowner engagement becomes more and more of a necessity. HOA boards and their respective management companies should be focused on reviewing ways they can improve engagement and apathy among residents – whether it be through community driven events, technological enhancements such as HOAst, or even as simple as adding recognition in the monthly newsletter.

Safety is still a concern

As we are still living in uncertain times, homeowners are more concerned about safety. They want heightened security of buildings, as well as their personal property and information. Homeowners’ associations now must consider what measures are right for their community, as there are many options – from keyless entry to biometrics. Open communication with homeowners is essential to choosing the appropriate security strategies for your properties. The right homeowners’ association software partner can help ensure residents’ online data is secure.

There’s no doubt that the HOA trends for 2022 involve technology in some way. We believe that technology is the key to overcoming the challenges HOAs have faced through the pandemic and meeting homeowners’ increased expectations for faster communication and resolution of issues. For more intel on ways to improve relations within your associations, hear from the communities themselves in our 2022 State of the Industry Report.

Board meetings are the backbone of any homeowners association (HOA). At a board meeting, members discuss the current state of the association as well as budgets, proposals for new projects and improvements, and changes to the community’s rules. HOA board meetings offer an opportunity for residents to speak up and advocate for their needs as well. In other words, board meetings are vital to the HOA’s governance.

Many HOAs require a minimum number for attendance to hold a board meeting. Ideally, this encourages everyone in the community to attend a meeting, but there are always residents who cannot be present for various reasons. As a result, the association’s secretary or another designated individual needs to be present to take minutes.

If you’re ever called upon to document an association board meeting, it helps to understand what is involved with taking minutes — this makes it easier to stay organized and record the session with accuracy.

Why Do HOA Minutes Matter?

HOA meeting minutes are vital for several reasons. As mentioned above, they provide a record for anyone who can’t attend the HOA’s board meeting. But minutes are also valuable for the following reasons:

Minutes Serve as a Detailed Business Record

Minutes record valuable details about the HOA’s business. This information is useful for project planning, operations, budgeting, and more. For example, if the HOA voted to paint a building a specific color, this information will be recorded in the minutes. In case the project manager forgets this smaller detail, he or she can consult the minutes.

Minutes can also provide a guide for future meetings. For example, if the board members ran out of time to resolve specific business, they’ll see this in the minutes and remember to raise the topic again at the next meeting.

Minutes Hold People Accountable

Meeting minutes hold residents accountable by creating an official record. For example, if a resident was issued a verbal warning about a rule violation, including this information in the minutes creates an official document trail that will be useful if the resident continues their behavior.

Minutes Create Historical Record

Minutes also serve as a valuable historical record for future HOA leadership. They show how the HOA has changed over time. Board members and managers can consult minutes from the past to see how the HOA’s governance may have changed over time, thereby learning from mistakes or using past successes to affirm current best practices.

Are Minutes Required?

For almost all HOAs, board meetings legally require minute taking. The association’s governing bylaws, as well as state regulations, may require the practice. However, minutes are only required to be taken at official meetings with the minimum member attendance or member proxies. This minimum number is known as a “quorum.”

When there is no quorum, the HOA cannot hold a vote, and the meeting is considered unofficial. HOAs are not allowed to discuss official business in these situations, and therefore minutes do not need to be recorded. Instead, the board secretary should record that there was no quorum and that the meeting has been postponed or canceled.

What to Include in HOA Minutes

Now that you understand why they matter, it’s time to learn what to include in HOA minutes. You may even wish to create a template with specific sections for each piece of information to record.

Remember to keep minutes clear and concise. HOA minutes don’t need to be a lengthy essay. In most cases, bullet points will be sufficient. If more extended discussions or debates occur during a meeting, the minutes don’t need to include a detailed play-by-play of who argued for which side, but could, instead, summarize the final decision.

When the board secretary begins taking minutes, he or she should record the following:

• The date, start time, and location of the meeting.
• The total number of members in attendance. Include the names of board members and residents and be sure to include the names of members voting by proxy.
• The meeting’s agenda. This element should include a brief overview of the topics discussed at the meeting.
• News or updates presented by the board. Remember to keep this section short, but include relevant information about budgets, construction progress, and so on.
• Ballot proposals. This section includes the ballot author’s name, the exact wording of the measure, and the outcome of the vote (whether the motion has passed or not).
• Issues raised by members of the community. Again, this doesn’t need to be overly detailed.
• A list of tabled topics. If the board cannot reach a consensus or runs out of time to vote on a particular proposal, record this information so the committee can move the vote to the next meeting.
• The end time of the meeting.

As a general rule, try to keep minutes under two pages. Only include details pertinent to the proceedings. Members should be able to quickly scan the minutes to understand what occurred during the meeting.

Use CINC Systems to Post HOA Minutes Online

After the meeting has concluded, email the minutes to board members and store a copy in the HOA’s office. Many HOA managers also post association minutes on their website.

CINC Systems offers custom-built, branded websites with personalized email addresses for each association, enabling effective communication between association boards and their communities. Having access to HOA minutes elevates the homeowner experience by increasing transparency and providing community members with instant access to board decisions.

To try CINC Systems association management software for your association management business, click here for a free demo.

Like any organization, homeowners associations (HOAs) make mistakes. Even the best HOA can suffer from occasional mismanagement, human error, and other problems that negatively impact residents. Association managers can help their clients handle mistakes. When the association is at fault, managers can mediate the HOA dispute and resolve it.

But what happens when the association another party accuses the association of a mistake it didn’t make? Unfortunately, associations often deal with disgruntled residents who misinterpret the association’s actions or wrongly blame it for a grievance. These false mistakes can be troublesome, and in extreme cases, may result in drawn-out court battles or legal arbitration.

Always be prepared to deal with false HOA mistakes. The following tips can help you assist your clients if another party falsely accuses their association of a mistake they didn’t make.

Tip #1. Get Complaints in Writing And Keep A Document

Most false HOA mistakes begin with a complaint. If a resident approaches you during office hours to discuss an issue, get him or her to write it down immediately after telling you.

With CINC Systems’ customizable web portal, you can empower residents to submit these complaints online, which is essential for several reasons.

First, it makes it easier to bring the problem to the attention of your clients’ board members. By showing them the written complaint, you won’t accidentally leave something out or paraphrase.

Second, written complaints create a document trail. If the situation escalates, it will be useful to document the issue’s timeline. In a dispute, a document trail provides helpful context and transparency that protects all involved parties.

If the resident’s complaint involves property, you can encourage him or her to include photos or videos that relate to the issue — this assures the resident that you and your clients take the matter seriously. It may also provide legal evidence for the HOA’s defense. For example, if the resident believes that the association’s actions caused damage to their property, photos, or videos may reveal that this untrue. To further protect your client, you should take pictures and videos whenever possible.

Tip #2. Refer to The Association Bylaws

When dealing with false HOA mistakes, make sure to consult the association’s bylaws and other relevant documents such as the Covenants, Conditions, & Restrictions (CC&Rs). These documents may provide valuable information to guide you in dispute resolution.

Additionally, bylaws and CC&Rs usually delineate an association’s legal responsibilities. For example, let’s say there’s a homeowner who is accusing the HOA of property damage because a tree fell on their garage during a windstorm. Is the association liable in this scenario?

In real life, multiple factors would influence the outcome, such as the location of the tree. In our example, the association’s bylaws may include a legal provision that the HOA isn’t responsible for weather-related damage — this would render the resident’s accusations of blame null and void.

Tip #3. Collect Documentation in the Association’s Defense

When dealing with false HOA mistakes, hope for the best but be prepared for the worst. You and your clients should have a contingency plan for situations that escalate to legal action. As soon as another party accuses your association, begin collecting evidence in their defense.

As mentioned previously, a document trail of events, including photos and videos, are excellent starting points for a legal defense. Additionally, collect statements from involved witnesses.

It can also help to gather relevant service records. Returning to our fallen tree example, the complainant may say the association did not do enough landscaping maintenance to cut excess branches. You can easily refute such claims by providing invoices and descriptions of services rendered from the association’s landscaping company.

Tip #4. Understand Defamation Laws

Defamation is a legal term that refers to situations where individuals spread false or damaging information. There are two defamation categories:

• Libel: When defamatory remarks are in the form of written communication.
• Slander: When defamation is in the form of verbal communication.

In either case, it must be provable that the defamation causes actual harm to the victim, such as injuring their reputation and causing them to lose business.

If the resident who falsely accused the HOA is openly discussing the grievance or writing about it online, it will most likely be considered defamation — this gives the association a significant advantage should the situation move to the courts. As long as the association can prove that the resident’s statements are untrue, they will have the law on their side.

Tip #5. Consult An Attorney

No one likes a lawsuit. In most cases, you and your clients should do your best to resolve false mistakes outside of court. If you can’t definitively prove that the complaint is invalid, try to reach a reasonable solution without escalating the matter.

However, depending on the nature of the false HOA mistake, it may be prudent to consult an attorney about whether your clients intend to fight back legally. If your client’s HOA has an attorney on retainer, this will most likely be one of their standard services.

The association can prepare itself and take any extra steps needed for its defense by talking to an attorney. If necessary, an attorney can send official letters to the resident who is complaining about the false mistake. Many times, this is enough to discourage the resident from proceeding with further actions.

CINC Helps Handle False HOA Mistakes

CINC helps associations by keeping time-stamped records of all interactions, providing association managers with a fully customizable website and portal for receiving complaints, and other resident communications. This robust system offers a streamlined process for a simple online documentation trail that helps your association deal with false HOA mistakes. To learn more about CINC Systems, try a free software demo today.

As a homeowner association (HOA) manager, you may be called upon to assist with developing the association’s annual budget. Providing historical data, anticipating future costs and pointing-out upcoming needs are valuable parts of your job; but it is the board that determines the numbers. In many ways, you’re the “eyes and ears” of the board when it comes to money management. You collect resident fees, pay invoices, monitor financial accounts, and perform other financial duties. This places you in a unique position to offer guidance about budgeting.

If your client’s HOA board approaches you for help setting an annual budget, use your knowledge of the association’s financial picture to inform them. You can provide custom financial reports from your HOA accounting software, like CINC Systems. Plus, your overall experience with HOA bookkeeping can also serve your clients in setting budgets.

An HOA’s annual budget will determine how much the association spends on services for its community, from common area maintenance to amenities. This also sets the amount residents pay in fees. A solid budget will account for all the HOA’s expenses, hopefully without exorbitant increases in fees. If your clients ask you to help plan the association’s annual budget, as a manager you can encourage the board to consider the following things.

Previous Annual Budgets Auditing

When creating an annual budget for an HOA, the best place to start is with an internal audit of previous years’ budgets. What is the association’s overall financial health? Has the HOA been in good financial standing, or have there been recent incidents with budgetary problems? How are the association’s reserve accounts looking? Are there large maintenance issues that require additional capital outlays to correct?

As an HOA manager, you can review past budgets with your client and help the board understand how its leadership has affected the community. Many financial experts recommend an audit that includes a minimum of three years’ financial activity. By seeing how well the HOA has been able to meet its budgetary goals, you can help the board decide what changes are necessary for the coming year.

Create a Baseline for Utilities and Maintenance Costs

In addition to utility services such as gas, electric, and waste disposal, what are the association’s other maintenance costs? Does the HOA employ security, a cleaning crew, or landscapers? If so, how much do these services cost each month?

After calculating monthly expenses for utilities and maintenance, you and your client can see the minimum amount required for the HOA’s annual budget. By assisting your client’s board members in understanding these expenses, you will be able to help them decide which services to expand or cut, if necessary.

Review Contracts with Vendors and Service Providers

Once you have assisted the HOA’s leadership by creating an inventory of monthly expenses, you can help them review contracts with outside parties that provide these services. This gives you and your clients an opportunity to renegotiate with vendors or hire new ones.

You can also help make sure that the HOA is receiving the best value for contract services. Aside from discussing the financial side of contracts, you can encourage your clients’ board members to poll residents and find out if the community is satisfied with its vendor’s services. Even if a vendor has low prices, it may be time to change if their services aren’t living up to the HOA’s standards.

Assist Association Board Members with Insurance Requirements

Annual budgeting sessions are the perfect time to review the association’s coverage and help your clients make sure they have adequate coverage. Requirements will vary from state to state, or even city to city. HOAs may also be required to carry more liability insurance if they have common recreation spaces, such as a pool or gym.

As an HOA manager, you can help your clients by researching the type of insurance they need and making recommendations. You can also make sure they’re getting the best value for your clients’ money. If needed, you can also help the board find an insurance agent.

Account for the HOA’s Reserve Fund

It’s important to have an adequate reserve fund in any annual budget. When you’re helping your clients create an annual budget for their HOA, you should advise the board to always account for its reserve fund. A portion of resident fees should always go into the reserve fund, even when it’s full. When managing HOA accounts, you help your clients by providing financial reports for the reserve fund from previous years.

Clear Up Outstanding Payments

As anyone who has ever managed an organization will know, planning an annual budget isn’t always a smooth process. It’s rare to have a clean starting point. Setting a budget for the new year will need to take into consideration many financial items that roll over from the previous year.

If you’re helping a client’s HOA plan its annual budget, make sure their board considers any outstanding payments from the previous fiscal year. If the association owes money for big projects, such as expansions or repairs, these payments will need to be included in the new annual budget.

Re-Determine Resident Fees

Lastly, help the HOA board consider resident fees when planning their annual budget. You can assist your clients with this after tallying all the association’s expenses, from monthly maintenance costs to big projects and any outstanding debts.

In general, there’s a simple formula for determining resident fees. First, add the total cost of operating the HOA to the reserve fund contributions. Divide this number by the total number of residents. The final number will be the amount that each resident pays annually. (Some associations may wish to divide this into monthly or quarterly installments.)

Once the HOA board has set its resident fees, you can use association management accounting software like CINC Systems to create an online payment portal. This will allow residents to set up automatic payments online.

Use HOA Accounting Software to Help

When you’re helping your clients plan an annual budget, there are several things an HOA board should consider. Luckily, HOA accounting software can help. The right accounting software can generate financial reports for custom data sets, including specific dates and categories. When you share these reports with your clients, the HOA board can make informed decisions about its new budget.

To see how HOA accounting software can help you serve your clients, try CINC Systems. Call (855) 943-8246, or request a free demo today.