Industry Trends

As we watch the fight for the first 12 team playoffs in college football come down to the wire, our Chief Revenue Officer Shea Dittrich sees it as a reminder of the rewards awaiting CAM companies if they prepare to win. He’s shared his top trends and advice for the rest of 2024 and going into 2025, as our industry evolves and grows more competitive. Read his LinkedIn article below or click here to connect and join the conversation.

Nick Saban, who is widely considered the greatest college football coach of all time, once said, “Becoming a champion is not an easy process. It is done by focusing on what it takes to get there -- and not on getting there.” This captures the crucial task facing association management companies today, in a rapidly changing and increasingly competitive space.

Not only will management companies need to define what that success looks like for them. They’ll need a sound strategy to go for victory. As we barrel through the end of the year, the college football playoff race is an apt reminder of the rewards that lie ahead with the right preparation. Here’s what CAM companies should consider approaching 2025, starting with what’s on everyone’s mind.

Acquisitions are rising, impacting everyone.

Anyone in our industry can see that a record number of acquisitions are happening. As emerging tech provides more scalable, cost-effective processes and platforms, investors are increasingly attracted to CAM companies. Whether you plan on growing and scaling your company or selling, you’ll need a solid foundation built on reliable data and efficient processes.

If you’re ultimately headed for the exits (and, perhaps, somewhere warm and tropical), EBITDA will be your constant refrain. Have you measured your cost per door, or better yet, benchmarked your costs against industry standards? According to third-party research, the average CINC Systems customer operates at a $1.33 efficiency per door.

When you’re staying in the game, growth and expansion also demand minimizing operating costs. CAM companies looking to scale should also consider adopting new revenue streams and aim for these to exceed 50% of base management fees.

Driving operational efficiency is critical.

Between rising operational costs, manager burnout, and boards demanding lower fees, increasing operational efficiency is a tall order. The good news is that it is very achievable, thanks to recent tech innovations.

The one I’m most excited about is Generative AI for the CAM space. The AI hype is real, and it’s not hyperbole to say GenAI will completely transform our industry and the way management companies serve boards and homeowners. That’s because we’re already seeing it.

After building and launching Cephai, the industry’s first generative AI solution, we’ve already seen some customers reduce homeowner contact volume by as much as 75%. Imagine the short and long-term impacts of automating mundane tasks—from increased client engagement and retention to the broad organizational impacts from sustained cost savings and the ability to explore new revenue streams.

And Cephai for homeowners is just the beginning. Next month, we’re incorporating generative AI into the CINC Manager app, driving even more efficiencies and opportunities.

Increased oversight has introduced more challenges.

Increasing investment in CAM companies will bring more attention—and scrutiny—to the industry. Companies must navigate shifting legislation, including the Corporate Transparency Act, which requires almost all associations to file a beneficial owner report to FinCEN by January 1st. CINC has introduced new software features to help boards streamline filing, stay compliant, and keep sensitive data safe.

Still, any new or evolving HOA/COA legislation is unwelcome news in a climate where CAM companies face no shortage of other hurdles, like rising costs and cyber-attack threats; meanwhile, boards are demanding lower management fees.

Successfully navigating these obstacles requires a proactive approach and a commitment to staying informed and secure. And you don’t have to go it alone.

It’s time to think of CAM as a team sport.

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Baseball has always been a game of tradition, filled with unwritten rules, iconic moments, and a human element that includes the players on the field and the umpires calling the game. As the world changes, so does baseball. Technology, and more recently artificial intelligence (AI), is becoming an integral part of the sport. From AI-powered pitch-tracking systems to automated strike zones, AI is redefining the role of umpires and how the game is played.

But baseball isn’t the only place AI is stepping in as a decision-maker. Companies everywhere are integrating AI into their operations—whether it’s streamlining processes, providing customer support, or analyzing complex datasets. Just as in baseball, though, not all AI systems are created equal. There’s a crucial aspect of trust that often gets overlooked: data security.

The Umpire’s Dilemma: Human Judgment vs. AI

In baseball, umpires have long been the final authority on balls, strikes, and plays at the plate. However, with the rise of AI and systems like the automated strike zone, some of that human judgment is now being outsourced. While this technology offers precision, it also raises questions about transparency, trust, and potential failure points. What happens if the system malfunctions during a critical game?

Similarly, in the business world, AI platforms are making important decisions, sometimes with access to vast amounts of sensitive data. Many organizations rely on AI systems like ChatGPT or other industry-specific third parties to help manage tasks, analyze customer data, or engage with clients. But what happens when those systems—like the AI umpires—are not held to the same standards of security? Just like in baseball, a single bad call or data breach can have significant consequences.

A Homerun, or Was It? The AI Triple that Missed the Wind

Imagine a baseball game in the bottom of the ninth inning. The batter swings and sends the ball flying towards the outfield fence. The crowd cheers as the ball sails over for a homerun—game over, victory secured! But wait. According to the AI-powered tracking system, that wasn’t a home run. Based purely on the speed, trajectory, and height of the ball, the AI calls it a triple.

What the AI didn’t account for, though, was the gust of wind that took the ball just beyond the outfield wall. The wind gave the ball an extra push, but because the AI system was limited to the data it was trained on, it missed this crucial factor. The human umpires, watching the game unfold, rightfully called it a home run. This scenario highlights the limits of AI—external conditions that can’t always be predicted by algorithms.

Now imagine this same situation, but instead of using live, real-time data, the AI system is relying on legacy data or information that has been pulled from multiple sources outside of the system. In this scenario, the AI is even more disconnected, working with outdated information or data that’s no longer relevant. Just like missing the wind that helped the ball over the fence, the AI system operating on legacy data would struggle to make accurate decisions based on the current reality of the game.

This is what happens with many AI platforms today: they work with disconnected, external data that are often outdated or fragmented, resulting in decisions that miss the mark. Legacy systems or external data integrationscan lead to errors, as these systems may not have access to the latest data within the secure environment of a self-contained platform. The more data moves outside the system, the greater the chances of inaccuracy and security vulnerabilities.

Why a Self-Contained System Makes a Difference

This brings us to the fundamental advantage of a self-contained AI system. When data stays within the same secure environment, as it does in a system like ours, accuracy improves significantly. The platform is always working with the most up-to-date information because the data hasn’t left the system to be processed externally. This is like having an umpire call the game from right behind the plate instead of relying on a delayed replay from a different ballpark.

By staying within the system, the AI can process data in real-time and account for real-world variables like the wind in the home run scenario. More importantly, this data stays secure. When platforms move data outside their systems, they introduce risk—data can be intercepted, modified, or delayed. This creates the same problem that occurs when AI misjudges the game: inaccurate decisions and lost opportunities.

Data Security: A Growing Concern for AI Users

More companies are realizing that many AI platforms today are not held to the highest security standards. There’s a growing awareness that many of these platforms, while powerful, may not be SOC 2 compliant or handle sensitive data securely. This creates a significant risk, especially in the event of a data breach or security failure.

However, businesses are increasingly looking for AI platforms that prioritize data security. When presented with the idea of a secure, closed AI platform—one that offers end-to-end encryption, controlled access, and SOC 2 Type 2 compliance—there’s immediate interest. As data breaches become more frequent and costly, security becomes not just a nice-to-have but a core requirement.

Umpires vs. AI: The Human Element and the Need for Security

Umpires bring a human element to baseball—a mix of experience, intuition, and judgment. AI systems, on the other hand, are built on algorithms and data. While they can be faster and more accurate in some instances, they lack the nuance and adaptability that comes with human oversight. But with the use of AI, whether in baseball or business, there comes a need for trust.

AI systems like ChatGPT or other third-party solutions are only as good as the security measures behind them. In baseball, when an umpire gets a call wrong, it’s visible and can sometimes be corrected. When an AI platform mishandles sensitive data, the consequences are often hidden until it’s too late. This is why security measures like SOC 2 compliance, multi-factor authentication (MFA), and regular vulnerability testing should be non-negotiable.

The CINC Difference: Setting the Standard for Secure AI

Much like how baseball is evolving with technology, so too is the business world. Companies are waking up to the fact that not all AI platforms are created equal. At CINC, the focus is on creating a secure, closed AI platform that puts data security first. This ensures that businesses using AI don’t get caught off guard when the stakes are high.

In baseball, the umpire’s role is to ensure the game is played fairly and by the rules. In AI, it’s our responsibility to ensure that our systems protect sensitive data and operate transparently, free from the risks of breaches or unauthorized access. With features like SOC 2 Type 2 compliance, data backups, and access controls, CINC’s platform goes beyond what many AI providers offer today.

Just Like in Baseball, the Game is Changing

As AI becomes more integrated into everyday operations, from the boardroom to the ballpark, the need for security grows. Clients may not always be aware of the risks they’re taking when using open, unsecured AI platforms. But much like a missed call in a high-stakes game, those risks can come back to hurt when least expected. That’s why companies should focus on platforms that prioritize security and compliance—because in today’s game, it’s not just about being fast or accurate, it’s about being safe.

In the end, whether it’s calling a ball or strike in a baseball game or safeguarding a company’s data, one thing is clear: trust and security are non-negotiable. And just like umpires who earn respect through consistency and fairness, AI platforms need to prove their worth by ensuring the safety of the data they manage.

Management companies offering a mobile-friendly website version rather than an app may feel they’re taking the more efficient route. The website portal provides all the basic tools homeowners need, and they can access it from both mobile and desktop! Plus, who wants another app on their phone, anyway?

This mindset, however, can be a little outdated. Americans spend a lot of time on their mobile devices. Today, 88% of the time spent on mobile is on apps—about four hours per day, up 5% over the past 2 years. Why?

“We can tailor it a lot better to their device and provide a more customized experience,” explains CINC Systems Chief Product Officer Ashley Berenson. “With a mobile-first design, we can get you from point A to B as quickly as possible. You’re generally on the go when you have your phone.”

A Tale of Two User Experiences

To illustrate the differences, let’s imagine two different management companies. Company A directs homeowners to its mobile-friendly website portal to make payments, view governing documents, and check out the latest announcements. Company B offers a mobile app with the same functionality and more.

To pay their annual dues online, Company A’s homeowners must track down the management company’s web address—not something easily remembered when they rarely visit. They must also remember login credentials, get out their credit card, and fill in tiny form fields. If the website isn’t optimized for their particular device, they will experience frustration and may even abandon the task altogether.

Homeowners with Company B open an app that’s saved on their phone. Rather than remembering credentials or having to reset their password, they use their fingerprint or face ID to log in. The app is quick to load and easy to navigate since it’s built specifically for mobile devices. Their payment information is already saved (and secure), so they can pay their dues in just a few taps. They can even opt to receive notifications so they never miss a payment deadline or announcement.

How Mobile Apps Benefit Homeowners and CAM Companies

Homeowners increasingly prefer mobile apps over mobile-friendly websites, and because they make it easier to accomplish tasks like paying dues, the enhanced self-service that apps provide also benefits management companies. CINC Systems is one of few CAM software companies offering a mobile app, with thoughtful features designed to boost management companies’ efficiency and bottom lines.

“Almost everything we are delivering is removing friction from daily operations so customers can focus more on building relationships,” Ashley says.

Cephai, the only free and secure generative AI in the CAM space, now powers the CINC Homeowner app. Cephai parses through governing documents, account data, and more to answer common homeowner questions instantly. Cephai is already reducing manager call and email volume by up to 80% for some associations, and will soon streamline other management tasks like:

• Automating manual accounting workflows
• Generating invoices and financial reports
• Drafting email responses to homeowners
• Creating and sharing newsletters
  

Because today’s management companies need new revenue streams and ways to engage homeowners, even more unique features are in the pipeline. Our Neighborhood Today, a curated, hyper-local news feed, will encourage homeowners to engage with the app regularly. A forthcoming vendor marketplace will also add value for homeowners and management companies, allowing homeowners to find vetted home service providers and providing a monetization opportunity for management companies.

The CINC Homeowner app is available on Apple and Android devices. Click here to take a product tour and see what it can do for your business!

Connecting neighbors by pivoting from mundane to meaningful.

The word “community” has two definitions: (1) a group of people living in the same place or having a particular characteristic in common, and (2) a feeling of fellowship with others as a result of sharing common attitudes, interests, and goals. When you think about neighborhoods and community associations today, which seems more accurate?

For the 57% of Americans who say they only know some or none of their neighbors, it’s the first definition—the only thing they share with their neighbors is geographic location. It’s a trend that appears to be worsening; 72% of 30- to 49-year-olds and 78% of 18- to 29-year-olds barely know their neighbors. 

What’s behind this decline in neighborly interactions and connections? Perhaps a key factor is the rise of technology and social media. We’ve seen these online communities become increasingly toxic as members attack each other and spew hate behind the safety of anonymous user names. The same happens in the real world; when neighbors are strangers, they become avatars characterized by others’ unconscious biases. We can see this playing out as distrust and fear fester in once-harmonious communities.

Distrust has grown towards HOAs and association management companies, too. Faced with mounting challenges like skyrocketing insurance costs, deferred maintenance, and new legislation, boards need engagement and guidance more than ever. But as community managers struggle under mountains of emails and routine tasks, their relationship with boards and homeowners becomes impersonal and transactional. 

Medical diagnoses start with a simple question: “Where does it hurt?” If the unraveling of trust, fellowship, and collaboration are symptoms that are worsening, it’s time for a new treatment. It’s time to redefine community.

What if, through innovation, our industry could help turn the tide by increasing transparency, participation, and collaboration? What if we promoted community engagement with tools that complement today’s mobile lifestyles? At CINC Systems, we not only believe it’s possible, but we are actively working toward that reality. 

We designed the Homeowner App to provide a positive experience from day one, where a homeowner’s first interaction with their management company isn’t a bill or violation, but an invitation to connect through the app. We introduced Cephai, the industry’s first true AI solution, providing homeowners with fast, reliable answers to common questions and freeing managers to devote more time to meaningful engagement. The Your Community News feature will allow users to discover businesses and experiences in their city, encouraging them to get plugged in, while the new-and-improved app communications center makes staying in touch easier than ever. 

As we continue to innovate and evolve, the idea of restoring and fostering community—real community—is our guiding light. We dare to imagine a future where revived neighborly spirit gives way to heightened local civic engagement, the backbone of healthy and well-functioning societies. Will you join us in redefining community?

Dear reader,

In one of his first interviews as CEO of Apple, with no shortage of PR and manufacturing crises to contend with, Tim Cook famously said, “You can focus on things that are barriers, or you can focus on scaling the wall or redefining the problem.” This is the perfect way to describe our industry’s state of affairs in 2024.

There are indeed plenty of factors threatening growth and success, from skyrocketing insurance costs to high employee turnover and cost-conscious boards. This pressure cooker environment has ushered in a reckoning and the need to pivot from “business as usual.” The most successful and sustainable companies will embrace transformation, turning challenges into growth opportunities.

Last year, we challenged the industry to Rethink Community. Now is the time to redefine our role within communities, from how we do business to the value (i.e., leadership) we can provide during a time of rapid change. With our latest State of the Industry Report, our goal is not only to inform but to empower.

Inside, you’ll find exclusive tips and insights around pertinent topics like:

• The biggest threats facing the CAM industry and whether associations feel equipped to meet these challenges
• External trends impacting the industry, such as new legislation, insurance rates, and AI technology
• How management companies can turn awareness into action when it comes to risks like deferred maintenance
• Ways to redefine the community manager’s role amid continued burnout and employee turnover
• Opportunities to diversify revenue streams as the all-inclusive fee structure becomes increasingly unsustainable

Please click here to download your free copy of the report. We also invite you to join our LinkedIn community for more resources, conversations, and camaraderie.

Sincerely,

Ryan Davis

CEO, CINC Systems

Survey responses for CINC’s upcoming 2024 State of the Industry Report are pouring in. If one thing is evident from the early results, 2024 will be a year of change for the association management industry. As HOA management companies and boards report increasing concerns around client turnover, deferred maintenance, rising insurance costs, and other issues, improving efficiency and thinking outside the box will be key to profitability.

Adam Balkcom is the CEO of CAM Leadership Institute (CLI), a community of management company leaders and industry experts offering mastermind groups, coaching, tools, accountability, and more to help companies overcome their greatest challenges. We spoke to Adam to find out his predictions for 2024 based on CLI members’ top concerns and priorities. Here are the top four.

Technology has become more integral.

Many community managers responding to our State of the Industry survey said they believe homeowner self-service tools are vital to advancing their careers. Adam believes there has long been a disconnect between the role managers should be playing and the tasks that consume most of their time.

“When you think about the role the community manager should play, they should be interfacing with the board and handling more complex projects and issues,” he says. “They shouldn’t be handling simple homeowner requests.”

While there has been plenty of industry buzz around efficiency-driving tools like outsourcing, automation, and AI tools in recent years, he believes next year will see more companies fully leveraging these solutions to handle high-volume, low-complexity tasks, which could lower costs while allowing managers more time for higher-level projects.

“2023 was the year to tinker with these new tools,” he explains. “2024 is the year to fully integrate them into the company to see cost savings and bring reprieve to overwhelmed team members.”

The industry is getting serious about data and cybersecurity.

While technology like AI can boost efficiency and the bottom line, it can also threaten data security by giving bad actors more sophisticated tools to find and exploit vulnerabilities.

“One of our advanced group members, a large management company, was talking about hackers trying to get into their check scanners,” Adam says. “I think creative cyber-attacks like this are only going to grow, and that’s going to become a bigger topic.”

He explains that the industry also needs more standardized data and performance indicators to benchmark, measure, and make better business decisions.

“Across our membership, only about 20% of our companies are actually surveying the boards. And it’s very rudimentary. They mail them a form, or they do a Google form, but it’s not standardized. It’s pretty subjective.”

He hopes to see the industry move towards more standardized P&Ls to enable comparative data. “That’s really been a struggle. Everybody’s P&Ls are so different which makes it challenging to get consistent bench-marking data.”

Management companies tighten their contracts.

Many small to medium-sized management companies currently struggle with profitability, like one business owner in a CLI group Adam spoke of who was close to selling her company — until she began charging fees for the additional services her company was already providing.

“She called me last week and said, ‘I just received $20K from a board for a loan administration fee. I’ve done this a million times with boards and never charged for it,'” he recalls.

He believes revisiting contracts will be a top priority for companies with similar challenges, starting with defining what’s included in the base management fee and what isn’t.

“We are seeing a big move away from all-inclusive management fees. Most companies are now including everything that is predictable and ongoing as part of the base management fee,” He says.

“Things that are unpredictable, like a major project, having to get a loan, having to do an assessment, or having to make a big insurance claim, are not baked into the base management fee.”

Making these contractual changes could produce dramatic results for companies’ bottom lines in the short and long term. Consider the example of the owner who quickly boosted revenue simply by charging loan administration fees.

“She could bonus her people more at the end of the year than someone who didn’t have that,” Adam explains. “That money drives up profitability and makes more money available to improve and grow the business.”

Communities start running more like businesses.

The bad news is that insurance costs aren’t coming down, at least not anytime soon. But association management industry professionals and HOA boards are getting increasingly creative to offset rising costs. Adam says he’s seen some management companies using innovative strategies like group insurance to decrease rates, or even being able to get better rates through partnerships as a selling point to get boards to switch to their management company.

To maintain their communities without depleting reserves, Adam explains, more HOA boards will have to make the tough decision to increase dues. He also believes boards will start to find new revenue streams by monetizing their unique access to residents through exclusive agreements with service providers and more.

“Communities are going to have to start running a lot more like businesses and finding other revenue streams to offset the impact of rising insurance and rising costs of infrastructure, especially if they are not wanting to raise dues,” he predicts.

We look forward to bringing you more insights in our 2024 State of the Industry Report! Please stay tuned, and be sure to follow CINC Systems on LinkedIn.

As we wind down from CINCUp 2023, our annual user conference, we recognize that the end of the conference brought the dawn of a tech revolution in community association management. Our dynamic attendees return to their offices as budding tech maestros, armed with byte-sized revelations and futuristic insights to supercharge their teams in optimizing CINC.

So, what did you miss? A lot of revolutionary launches with respects to AI, along with our continued focus on the homeowner. Here are our top three takeaways from the 2023 conference:

AI is Making HOAs Sunny.

One of the major themes of CINC Up 2023 was Artificial Intelligence. We introduced Sunny AI, a game-changing chatbot available in the homeowner app.  Sunny was designed to give homeowners information that previously resulted in a call or email to their management staff.  Sunny can handle simple requests like “What are the Clubhouse hours?”, or “What’s my account balance?”, and even more complex questions such as “I would like to build a fence, what do I need to know?”  Sunny provides homeowners answers to their questions quickly and efficiently, giving the people at manage the community more time to work on other priorities.

Other improvements to the homeowner app includes a new hyperlocal news offering, also powered by AI, which personalizes community news for each homeowner. This dual approach in communication technology is transforming how homeowners stay informed and connected with their communities and encourages them to use the app first for all things homeowner.

And it’s just the beginning….

400+ Product Enhancements, Just For You.

Over the past year, we listened to our clients’ feedback and needs and implemented 420 feature enhancements of all sizes.  This approach underscores CINC’s commitment to evolving its services and products to align with the needs and suggestions of its clients and ensures that the enhancements are relevant and effective.  Managers will especially enjoy the new GPS feature in the CINC Manager Mobile app that allows them to track their position on a map while they are out on the property, with homes lighting up in various colors if they need attention with an open work order, violation, or architectural request, a huge advancement from the days of checking notes on a clipboard then realizing that one address was missed on the far end of the property.  No more backtracking to that missed address!

The Connections Matter Most.

CINCUp provided extensive learning and networking opportunities for attendees. With over 55 sessions and workshops covering various aspects of CINC, there was something for everyone, regardless of interests and educational needs. The extensive group of offerings ensured that every attendee left with valuable insights and practical knowledge to implement in their respective teams back home, providing a better user and homeowner experience for all.

If you went to CINC Up, leave a comment about the biggest takeaway you had from the conference.  If you didn’t attend, we hope to see you next year!

Millennials, the “avocado toast” generation, have caught a lot of flak in the media. Often characterized as frivolous spenders, lazy quiet quitters, or entitled participation trophy winners, Millennials are blamed for killing everything from diamonds to department stores — and even entire industries.

Today, these broad generalizations are increasingly considered dated, and Millennials aren’t so young anymore, either. The oldest Millennials today are 42 years old, and their spending power and influence is growing as they mature. In 2023, the Millennial generation finally shifted from renter-majority to homeowner-majority; when it comes to real estate, they now have skin in the game.

What will that mean for the future of homeowner associations? While it’s easy to assume HOAs will be yet another “death by Millennial” victim, we didn’t want to. Instead, we surveyed hundreds of homeowners across the U.S. to learn about their current experience in their communities, what it would take to increase their involvement, how technology plays a role in overall satisfaction, and what they’d like to see in the future.

We shared the results in our Millenniold whitepaper, and they might surprise you. Here are some of the top takeaways.

#1: Millennials favor their associations more than their Gen X and Boomer counterparts.

Given that HOA sentiment seems to be declining (another narrative perpetuated by mass media), we hypothesized Millennials would view their experiences with associations negatively. We were wrong!

81% of Millennials — more than any other generation — rated their experience living in an HOA/COA as good or very good. 64% of Millennials plan to actively look for homes within an HOA/COA for their next move.

#2: However, Millennials are more likely to hate the rules.

Our survey suggests that the younger a homeowner is, the more likely they will find HOA laws, bylaws and management regulations too restrictive. This is yet another reason for HOAs to consider reviewing and revisiting their CCRs, which often contain outdated verbiage that could lead to consequences like lawsuits or harm owners of different backgrounds.

#3: Millennials care more about community involvement than governance.

Millennials better understand the value of professionally managed communities through the lens of engagement. While they are inclined to say their HOA helps them get to know their neighbors better, Millennials aren’t as convinced that the neighborhood couldn’t execute well-planned events and functions without the HOA.

This underscores the importance of streamlining and automating menial, time-consuming tasks so property managers can focus more on community-building efforts. Our latest State of the Industry survey found that most managers also want this.

#4: Millennial homeowners want better HOA technology.

More than any other generation, Millennials feel that their associations’ technologies are very poor and clunky. The top technologies on their wish lists are online community forums, online voting systems, a mobile app for payment processing and communications, and online deliveries of financials and CCR documents. Gen Z responders trended similarly and were even more likely to request online voting systems and mobile apps.

The bottom line: Digital tools that drive engagement will be increasingly critical to keeping homeowners satisfied.

#5: They aren’t completely against joining the Board — with some caveats.

Many management company executives feel that younger homeowners are simply uninterested in joining the Board. This isn’t necessarily the case, according to our survey respondents. 45% of Millennials said they would be interested, but reported time constraints and pressure as their top deterrents. To recruit them, management companies should be transparent about the level of commitment required and establish clear expectations and responsibilities.

Check out the full whitepaper to learn more about our survey findings and how management companies can improve homeowner satisfaction and engagement.

Our 2023 State of the Industry survey revealed that underfunded reserves are a leading concern among community association managers. Between recent high-profile events such as the 2021 Surfside Condo collapse, the increasing threat of natural disasters, and inflation driving up the cost of repairs, it’s hardly a surprise that underfunded reserves — once commonly dismissed as a routine budgetary concern — would be top of mind for association management professionals today.

What might be somewhat surprising is another trend driving up costs and depleting reserves: A dramatic increase in legal claims filed against homeowner associations.

“We are seeing an uptick in litigation,” said Sandra Gottlieb, an attorney specializing in community association law. “We’re seeing a lot of discrimination cases.”

Rises in such litigation tend to track with the economy, with far more claims filed during economic downturns. Insurance providers have reacted swiftly to the “perfect storm” of increased natural disasters and lawsuits. 

Not only have premiums skyrocketed, escalating the financial burden on community associations and homeowners. Some insurers, such as State Farm, are issuing non-renewals to homeowners associations deemed risky. In fact, out of every ten carriers that may have issued proposals eight years ago, only about two now offer quotes, driving costs even further upward.

With so many pressing challenges to contend with, many HOAs are deprioritizing maintenance and reserves. But when reserves are too low, a single claim can bankrupt an association. In the short term, homeowner associations and management companies must be proactive in minimizing common mistakes that result in claims. In the long term, they can be part of the solution by actively fostering inclusive communities.

First, it helps to understand how we got here.

Understanding the Surge in Claims

According to Gottlieb, most claims against HOAs are related to injury or discrimination. On what grounds can someone sue an association for discrimination? The Fair Housing Act, initially passed in 1968, protects certain groups from discrimination when renting or buying a home, getting a mortgage, seeking housing assistance, or engaging in other housing-related activities. Widely regarded as the last great legislative accomplishment of the Civil Rights era, it has evolved to include more groups that face housing disparities; for example, in 2012, the law extended protected rights to the LGBTQ+ community.

Not all associations have updated their bylaws, language, or business practices accordingly. In fact, Racially-restrictive covenants still appear on the books in nearly every state in the U.S. A quick Google search would reveal multiple news reports about homeowners finding discriminatory or conflicting language in covenants and bylaws. In states like California, cases of hostility or discrimination are public record, which can inspire even more claims. That was the case for one community Gottleib encountered.

“I led a town hall saying they were killing themselves because the carriers will refuse to provide coverage,” she recalled.

HOAs don’t always realize they are violating laws around protected classes, but intentional or not, these mistakes can be extremely costly to associations.

Harnessing Technology for Change

The complex task of identifying and sanitizing bylaws and documents can be daunting. However, new AI technology offers a viable solution. Tools like the CINCit AI chatbot have the potential to scan and detect conflicting language based on the latest laws and statutes so community managers and board members can revisit the language.

Of course, no current technology can replace proper legal counsel. Gottlieb also recommends bringing in multiple perspectives when looking for potential problem areas.

“If management and legal walked around together, there would be red flags everywhere,” she said. “Prevention is important.”

It’s important to note that AI technology can also complicate things legally. Gottlieb has seen instances of people using AI to digitally alter evidence and documentation, such as security camera footage. And while AI can simplify routine tasks for community managers, such as writing violation letters, it can potentially introduce factual errors or even insensitive language. Having the right guardrails and security in place is critical.

Redefining the Narrative

In addition to the financial implications, the growing discrimination claims perpetuate the negative perception surrounding HOAs. However, we have an opportunity to reshape the narrative. By embracing new tools and solutions in the short term while working toward creating welcoming and inclusive neighborhoods for all, today’s community association management professionals can redefine what it means to live in a professionally managed community.

Have you noticed the debate over HOA rules and enforcement tactics — sometimes over seemingly petty issues — has gone more mainstream? HBO’s Last Week Tonight with John Oliver covered homeowner associations and the “surprising power they have” in one of the latest episodes. And this AJC piece from CINC’s own backyard is yet another example of how the national sentiment seems to favor homeowners, with lobbying groups taking their side in some cases. These stories all fall into the sentiment we heard in our State of the Industry Report – that most associations are not satisfied with their management companies.

Homeowners are desperate to have their voices heard, even if it means talking to the media, getting lawyers involved, or airing their grievances on social media. This means that a “business as usual” approach to addressing homeowner mishaps won’t cut it. Improving two-way communication means the need for transparency, convenience, and empathy.

Most rules are worth it.

We know this to be true: basic HOA and COA rules, such as lawn maintenance and street parking, are not only important in maintaining community standards but effective in improving home value. Now, this isn’t true of all rules. If you’re fining homeowners for a garden gnome, don’t be surprised when you see that violation letter in your TikTok feed. But most CCRs are fair and balanced. We find that when homeowners go berserk on the violation letters they receive, it usually isn’t about the actual rule they violated. Rather, they are frustrated by the way in which it was communicated.

Applying EQ to the rules. 

Emotional intelligence is a topic we’re heavily focused on this year at CINC, because we believe that management companies training their teams on EQ will experience significantly higher customer satisfaction.

Here’s an example of applying EQ to a violation letter: Let’s say you have a homeowner who left their trash can out for two extra days, and for them, this isn’t a common occurrence. You could send out a boilerplate letter during your inspection in just a couple of clicks. But what if that homeowner left their trashcan out because they just lost their job and their mind has been obviously preoccupied? When they receive their letter on top of the true crisis happening in their life, all of the anger that they feel towards their job loss will be reflected in their reaction to your letter. And then, the virality hits.

If this isn’t a common occurrence for that homeowner, what if you add a quick note in your email that says, “Hi! I know that this isn’t a usual issue for you, so I hope everything’s okay. I appreciate having you in this association and can work with you on clearing up this real quick. Please let me know if you need anything from me.” Not only is it less likely that the homeowner will feel upset by your violation, but they may even feel appreciated by you as they are going through a hard time.

This is exactly what EQ is all about – putting yourself in the shoes of the other person, being aware of their experiences, and applying that to your communication. As Terri Allen from Spectrum Association Management puts it, “Make it easy for homeowners to do business with you – make it easy with tools and access…HOAs, in general, have a stigma so creating that love language in property notices or communication that goes out to them is important.”

How mobile technology fosters communication

Keeping homeowner hostility at bay doesn’t just happen because of strong communication tactics. Mobile technology that speeds up processes, provides easy-to-use self-service techniques, and enhances transparency is also key.

For example, the most “liked” video on TikTok about HOAs (warning: explicit language) is a homeowner sharing how her HOA issued a violation letter to her when it was meant to go to her neighbor. Unfortunately, the violation letter mishap took place while the homeowners were grieving the loss of their child. While human error happens, her HOA didn’t have technology in place to allow her to quickly address/reply to the violation with the Ring videos/photos she can easily access on her phone. Instead, she had to document and print the proof before heading to the post office to mail her response.

Consider this:

• If creating violation letters is a very manual process without templates to pull from and edit based on homeowner information, you certainly won’t have time to add an empathetic tone.
• If your boards and homeowners can’t access their CCRs from their phones, there’s room for doubt in the validity of any rule enforcement.
• If it takes several minutes to complete just one task during an inspection, managers will be too burdened with tasks to truly support homeowner needs.

Bottom line: The more tools you provide to managers and boards, the less likely you are to be the next viral anti-HOA sensation.

What steps are you taking to improve two-way communication, transparency, and convenience for homeowners (and NOT end up on the wrong side of a viral story)? Keep the conversation going by visiting our Rethink Community series, and let us know if you’d like to demo our mobile offerings.

For the second year in a row, CINC Systems has surveyed community managers, management company executives, and board members throughout the country to determine the State of the Community Association Management (CAM) Industry. The feedback and responses indicated several common concerns for the future of the CAM industry and highlighted a variety of interesting concepts, both familiar and new.

As the world has seen dozens of times throughout the 2020s, much can change in a single year. Egg prices skyrocketed and subsequently plummeted over the course of 4 – 8 months thanks to a particularly virulent strain of avian flu. The housing market exploded seemingly overnight, doubling or sometimes tripling the value of homes throughout the country. Reactive condo maintenance legislation passed with lightning speed in the wake of the Champlain Towers South condo collapse in 2021.

All of this to say, change is all around us, and the CAM industry is seeing that first-hand. After publishing the results of the 2023 State of the Industry survey, there are some universal truths that still remain, and just as many changes that management companies and community associations should stay aware of for the future.

What Was and (Likely) Always Will Be

There are a few standard concerns and trends the CAM industry will probably always face. We saw these issues in the feedback from both the 2022 and 2023 SOTI results and firmly believe these trends will continue into the foreseeable future.

• Underfunded Reserves & Deferred Maintenance – Despite some states requiring reserve studies and funding percentages for reserve funds, most communities can barely sustain the minimum expectations. In fact, it’s predicted that 1 in 5 communities will go cash flow negative in the next five years. Funding for the future requires strong buy-in from the community, and most boards struggle against problematic homeowner apathy. Though several states are also passing new legislation requiring maintenance for certain communities, it’s likely we will see the majority of HOAs and condo associations struggle to financially support these expectations long-term.
• No Emergency Preparedness – Many community associations admit to having either an outdated plan of action for emergencies or no plan at all–more than that, even fewer have any plans to update or create those plans. As much as this is on their radar, it isn’t a high priority, and it will be important for CAM managers to impress upon their boards the real value an emergency preparedness plan can bring.
• Cost-Conscious Boards – one of the biggest concerns for management companies in both 2022 and 2023 was the fact that boards tend to laser-focus on expenses. It’s important and financially responsible, but everything comes with a cost, and when most boards seek out the cheapest solution rather than the most cost-effective and best option, there is always fallout. Management companies will need to continue to justify their costs.

Where Change is Happening or About to Happen

• Managing Manager Burnout – The shortage of CAM managers and the increasing levels of manager burnout are definitely still here, make no mistake. Every day more and more managers are leaving the industry entirely, and there is still little to no new talent filling that gap. But new solutions are cropping up. Virtual employees are taking on day-to-day tedious tasks that tend to drown managers. Answering phone calls, responding to generic emails, and general homeowner communications are all simple tasks a VE can handle, allowing managers to rebalance their workload and mitigate burnout.
• Reevaluating Retention – In both 2022 and 2023, management company growth was a high-ranking goal. But few management companies factored client retention into those goals. In 2023, it will be important to reconsider growth. Retention IS growth, and dedicating time and effort to client retention will be a new avenue of effort for many management companies.
• Embracing Self-Service Technology – In the past, community associations have been actively against adapting to new technology. But as the generational demographic of the workforce and homeowners skews further and further into the millennial bracket, that technology avoidance begins to disappear. This means that today and in the coming years, we expect to see a significant shift in communities demanding self-service tools and functionality. That said, they may not even realize that’s what they’re looking for–self-service is a catch-all aide for so many pain points, such as lack of transparency, disempowered homeowners, and even manager burnout.

Pushing For Change

Change is a very good thing, and there are several areas in the CAM industry that can and will see a massive change in the coming year. But taking steps to create the change you want to see in the industry will be just as critical to industry growth and success.

The year is coming to a close, and as it does, it’s important to take a quick glance back at what we’ve had the opportunity to learn. This past year was full of great lessons thanks to the insights board members, association managers, and management company executives contributed to our State of the Industry survey. These five takeaways are ones we think are worth revisiting:

The Challenges of Investment Homeowners 

The housing market went a little crazy this year. Housing prices reached stratospheric heights for sometimes meager amenities ($400k for small, self-proclaimed ‘fixer-upper’ homes in some areas!), as property investors and investment firms scooped up real estate for a quick profit. For homeowners this was a nightmare, obviously–but HOAs and condo associations hit a snag, too. With too-high a percentage of absentee homeowners, or homes being purchased just to be rented on short-term rental sites, communities are at risk of being overrun by a sea of strangers who may not follow community rules, and who cannot make decisions or votes at meetings.

Board Members Are Techier Than Ever Before

The CAM industry has, until quite recently, always been perceived as technologically stagnant. While the world around them advanced forward with fancy new gadgetry, most communities still accomplished basic tasks (like accounting) with incorrect tools (like Quickbooks) because they’re familiar and seemingly cost-effective. But that’s been changing significantly. This survey showed just how techy board members can be, and the kind of technological support they’re seeking out for their communities. Sure, some of those wants were obvious ones like better communication tools (a trend we’re predicting will continue well into 2023), but others like Intelligent Mail Barcodes and thermal imaging cameras for leak detection made even our techiest tech-heads here at CINC nod in surprised appreciation.

Community Conflict Resolution Is a High Priority

2022 was the era of recorded shouting matches. From Twitter to TikTok, every social media outlet had recorded proof of someone being loudly, disrespectfully, flagrantly…wrong. And when HOAs are already a sore spot rife with disagreements between residents, board members, and community association managers, this sudden uptick in volatility was important to many. Finding the right way to de-escalate a confrontational situation in a community was critical, and even though this topic didn’t make our predicted top 3 trends for 2023, it will almost certainly still be a big concern for communities and management companies everywhere for many years to come.

Community Managers Are Still Very Burnt Out

Burn out is everywhere, it’s true. Regardless of industry or role, everyone is at least a little burnt out these days. But in an industry where there is an ever-growing chasm of incoming talent, a mass exodus of existing talent, and a growing need to be more things to more people, CAMs are starting to just burn. Our research indicated that the average CAM serves approximately 891 units currently, and that management company executives are often shouldering the overflow from that massive workload.

Customer Satisfaction Was a (Solvable) Mystery

In 2022, we found that CAM management companies wanted to drive their customer satisfaction numbers up, but struggled to connect some important dots when it came to maintaining or increasing that number. Many executives were using metrics like customer retention rate to gauge satisfaction, and while retained clients do tend to be satisfied in some way, retention is the least-useful indicator of a happy client. More important satisfaction metrics like client referrals or online reviews were being overlooked. Customer retention is the foundational goal of bringing on a client, not the indicator of success.

Be a Contributor

The industry is in a constant state of flux–that’s why we’re asking industry professionals just like you for your thoughts again. CINC’s 2023 State of the Industry survey is live and ready for your input. Click here to share your knowledge and make your thoughts and insights known.

The year is about to come to a close, and everyone is trying to think ahead. Board members, community association managers (CAMs), and management company executives alike are gearing up for the immediate and long-term futures.

Understanding the community association management industry can be a real challenge, though. With such a niche area of service, and an assortment of people who certainly didn’t grow up saying, “I want to be a board member or an association manager” on career day, it can be hard to pinpoint what will matter most to the professionals and volunteers throughout the space. Year over year, the landscape in the CAM industry is changing and shifting.

When CINC Systems surveyed the industry in 2022, some pretty big revelations came up–management companies felt that staff were more burnt out now than ever before and struggled to understand customer satisfaction; HOA and condo boards were very interested in community security and security technology and sought ways to stay successful even when facing turnover.

If you look back at these results and consider how the year played out for many within the industry, there are a lot of concerns that need to be addressed. But when it comes down to it, a few common trends appear to take shape and can act as a tentative guide for the coming year:

1. Supporting Managers in New Ways

The Great Resignation hit the CAM industry like a semi, and there’s no sign it will slow down in 2023. Many management companies took this as a sign to re-evaluate a few key components of how they source staff. For years, the obvious answer has been to hire certified, licensed CAM professionals–but with how few and far between those seem to be these days between resignations and a stagnant pool of new talent, changes had to be made. Many CAM management companies turned instead to virtual assistance in some capacity. Whether that’s hiring a virtual assistant to manage the multitude of schedules their managers and communities must juggle or outsourcing internal departments to HOA-specific service providers, there seems to be a new respect for non-staff staffing options, and we expect that to trend upward in the year ahead.

2. Preparedness and Maintenance Will Remain Top of the Mind

Last year’s trend prediction focused pretty heavily on the ramifications of the Champlain Towers South collapse, and the FNMA restrictions that came from the tragedy. 2022 was a year full of new legislative efforts to combat aging infrastructure in community association residential buildings as a result. In 2023, we expect those recently-passed or soon-to-be-passed HOA laws throughout the country (California, Florida, and Hawaii, just to name a few prominent states) to have a massive impact on the way the CAM industry operates and handles their finances and maintenance schedules.

3. Repositioning Community Management to Reveal Value

Tangentially related to both the ongoing manager crisis and the condo maintenance restrictions is the reality that CAM management is often misunderstood. Community board members perceive their managers much like they do their cleaners or babysitters–they’re “the help.” And given enough time and mistreatment, managers can fall into the rut of starting to believe that. But community management is significantly more than the list of operational to-dos and communications to be made. When you reconsider the job being carried out and see the big picture, that it is instead a job of asset management, you can reposition how your management company and your managers present your services and better price your services for the value being offered. This will be especially huge in the coming year, as so many managers and management companies will be responsible for managing large-scale capital improvements throughout their portfolios.

Help Us Stay Ahead of the Curve

The industry is in a constant state of flux–that’s why we’re asking industry professionals just like you for your thoughts again. CINC’s 2023 State of the Industry survey is live and ready for your input. Click here to share your knowledge and make your thoughts and insights known.

The CEO-MC Retreat from the Community Associations Institute is always one of our favorite events of the year. It’s an intimate setting where business owners connect to learn best practices, develop their leadership skills, and proactively plan for the new year.

This year’s event in La Quinta, California gave us the ability to connect one-on-one with our customers during a critical time in community management. While we connected with our colleagues, there were three key areas in which leaders were focused on improving the most: operations, talent, and overall business maturity. Here’s a breakdown of the key takeaways we heard from CEO-MC:

Companies want to learn how to improve operational practices.

Entrepreneurs in community association management can’t scale at a productive rate if they can’t manage operations in a productive manner. But in an industry fraught with urgency, executing a routine day-to-day can seem impossible. That’s why so many leaders were enthralled with the keynote from EOS – Entrepreneurial Operating System. The session was focused on teaching how to get what entrepreneurs want from their business by setting the vision, holding everyone accountable, and developing team cohesion and transparency. As costs continue to rise for both supply and labor, the need to enhance productivity will be extremely important in the upcoming year. Improving operational practices often entails not just software operations, but people operations. Are you providing the right tools to help your team get their work done in the most efficient manner, and does that therefore improve continuity between your team and the organization’s vision? And operations seamlessly dovetails into the next key takeaway…

Companies are STILL struggling to find qualified talent.

We’ve heard of problems related to recruitment and retention since the dawn of the Great Resignation. And while the job market may be cooling down, the need for qualified talent continues to heat up. This becomes very challenging for those trying to hire in community management. Asking someone to be a rockstar in project management and client relationships means asking someone to be extremely skilled at two very different skillsets – this conundrum is why good talent is so hard to find! Since most companies don’t have the budget to split the job into two roles, they’ll need to take advantage of tools that streamline project management within multiple communities. It’s also vital to empower managers with technology that gives them the ability to communicate with their board members and homeowners quickly and efficiently. Finally, homeowner self-service is a necessity to improve a manager’s schedule. If a homeowner knows how to manage their payments, work orders, and communications in one location, they are far less likely to consistently call for help. The more leaders can do to reduce manager burnout, the more likely they are to find better talent for their organization.

Companies want to know how to exit strategically

There are many entrepreneurs in the space who have reached their personal peak in business development. These leaders aren’t necessarily thinking about operational efficiency and talent development – rather, they are asking themselves, “what’s next for me?” When does one know when it’s time to sell their business? Where can one turn to valuate the company, and how easy (or not easy) is it to find the right buyer? These questions can seem big and scary when a business leader doesn’t know where to turn, and that’s why our founder Bill Blanton created CINC Capital. As the only firm dedicated to the community association management industry for business acquisition, CINC Capital works one-on-one with CAM owners to understand the value of their business, create a plan for a future sale, and achieve a maximized return on investment. It’s the reason why Cyndi Sullivan of Key Community Management was able to comfortably sell her business and enter her next chapter in life.

From people to operations to business development and acquisition, we’ll continue to drive the conversation for key 2023 priorities impacting our industry. Follow our blog to stay up to date on all of the emerging trends facing community association management professionals today.

2022’s CAI National Conference was certainly one of the most eventful moments we had in 2022. We had an incredible time reconnecting with colleagues, showcasing our solution to new clients, and giving away prizes at our Speakeasy party with a cameo from Lance Bass of *NSYNC!

As we recollect from the week of CAM-focused insights and festivities, we consider the key learnings we had while in Orlando. These takeaways are important for any community association management company to consider in the remainder of 2022 and beyond, as we believe that a thorough understanding of these topics are paramount to growth.

IRL is back…

The conversations we had this year were incredible, and we believe everyone would agree that our community was much more excited about engaging in thoughtful conversation this year versus the previous year. Our Speakeasy was an incredible evening of comradery and celebration, and it’s a true indicator of where the world is going: business travel is now at 80% of pre-pandemic levels, proving that many are ready to turn in their virtual cameras for some true person-to-person connection.

What does this mean for you? It means that now is a great time for your communities to revisit their social calendars, ensuring they have some in-person activities for the summer season (so long as it’s deemed safe within your location). It also means that in-person meetings with prospective boards may go a long way for you as you work to build your portfolio – so dust off those in-person brand activation skills and get to it!

…but virtual convenience is here to stay.

The convenience of virtual meetings and hybrid workspaces are lessons learned in 2020 that should not be forgotten. Even with a desire to meet up again in real life, communities and employees value the flexibility of choosing to meet in person or virtually. Virtual board meetings are certainly here to stay, and hybrid/remote work options will help you if you’re struggling with hiring in what continues to be a tight labor market. Online tools that drive engagement within communities should not go unused as well – for instance, the polling features offered through our HOAst e-voting tool are great ways to bring the community together through a few quick emails. Ask your community to vote for the best looking lawn this season and watch the (friendly) competition grow!

Community Manager burnout is still top-of-mind.

As we’ve been reporting for over a year now, the burnout that community managers are experiencing as a result of an ever-growing workload and increased homeowner tensions is driving two week notices left and right. Many management company owners asked us not just how our technology drives profit, but how it alleviates workload for their teams. Mobile-first technology is key, and we spent loads of time on our phones showing everyone how they can complete a 9-5 workday with the tap of a thumb. It’s this mobile-first approach that will continue to curb burnout and re-engage community and property managers in their careers – which will in turn reduce turnout among association management companies.

Customer support is an essential component to technology.

As business owners and community managers approached our booth this year and enjoyed the tours of our mobile capabilities, we were consistently approached with the same question: How will you support us on a regular basis? This isn’t a question we regularly heard in years prior, so to us it means one thing: many software providers and vendors are reducing their investments in account success and customer service.

This couldn’t be a worse time for vendors to reduce the level of service they provide to their clients, as our State of the Industry Report shows the growing concern of customer issues arisen through Pandemic-induced trauma and anxiety. Vendors should be offering to their clients the same level of service that they received during the sales process, through personnel such as a dedicated Account Success Manager and highly regarded support team. To learn how CINC provides support for day-to-day association management and long term business growth, check out our upcoming webinar about putting the Service back in SAAS.

What was something you learned from CAI National 2022 that we didn’t cover? Connect with us to let us know your thoughts and what’s driving your growth for the remainder of the year.

Imagine this: You’re gearing up for your upcoming HOA board election, hoping to engage your community and improve the relationship your board has with fellow homeowners. But as you work to collect votes, you can’t achieve quorum. It’s not because of your lack of trying, either. The homeowners you’ve spoken to were certainly engaged and voted. But there were a ton of homeowners that you couldn’t speak to – because they don’t actually live there.

One of the biggest surprises that we had when reviewing our 2022 State of the Industry Report was the level of concern pertaining to short term rentals and investment homes. The concern was higher among boards than community association management executives, which could mean that the problem may be growing in intensity just now. This isn’t a problem that’s going to go away, either: the average number of unique listings on popular short term rental sites is expected to increase by 20.5% in 2022, and investors purchased a record of one in five homes last year.

We can’t change trends in the way consumers wish to vacation or the types of investments others wish to make, especially in a healthy housing market. But the primary goal of a homeowners association is to build community, and this isn’t possible if there are is no community to build. So how can we protect the very mission of our HOAs and COAs without assuming that we can stop an ever-growing trend?

Are investment homeowners invested in your community?

An investment property can be best described as real estate purchased to generate income through either rental income or appreciation. Oftentimes they are purchased by a single investor looking to improve the value of their cash offering; sometimes these purchases will be from investors who don’t even live in the United States, but want to increase the value of their cash equivalent.

Real estate is absolutely an investment, and it’s a smart investment for many. But what happens when a community is fraught with homeowners who never truly live there? Many HOAs are noting that the upkeep of the home isn’t as carefully mannered as others, which in turn brings down the value of the whole neighborhood. Other frustrations relate to homeowner apathy – a huge concern across the community association management industry. Investment homeowners are significantly less likely to vote for board members, participate in neighborhood polls, or communicate and interact with other neighbors. And while there are prospective homeowners ready and able to be active members of a community, their offers often can’t compare with those of investors who are able to pay in full cash.

Short term rentals leading to a surge in violations

As vacationers enjoy the experience of the Airbnbs and VRBOs of the world, many homeowners are recognizing the extra income they can enjoy by renting out their units, especially in destination locations. While this is a natural change in travel over the past decade that isn’t likely to wane in popularity, many associations are left perplexed on what they should and shouldn’t allow.

The main concern that most HOAs and COAs have pertaining to short term rentals is that they have less control over the renters’ actions. Excessive noise, parking violations, and disregard for rules such as trash pickup time are just a few concerns cited from residencies that are regularly rented.

One of the most common misconceptions of a homeowners association – and the reason why many believe that they don’t want to live in an HOA – is that all an association does is issue one violation after another. As boards work to debunk this myth through community-building activities, they may be dismayed if they also have to increase the number of violations added to their roster. And this also, of course, hurts the workload of the community manager, who is already in burnout mode.

Should you actively stop rentals and investment homes, or would that only make things worse?

There are rules and regulations that can be put into place within an HOA and COA that can limit, or even eliminate, the allowance of investment and rentals within the community. But while this may alleviate the added stresses for the board and association management company, it may not be the right solution. Some housing analysts are concerned that blocking investors would harm renters in the long run, who may face a crisis in attempting to find affordable housing. Others are concerned with the level of power that HOA and COA boards are attempting to impose on the community – after all, why should the board have the right to determine whether or not you can earn extra income by renting out a residency that you own?

So, what can be done?

Every association is different, and there is no way to create a uniform procedure for all HOAs and COAs when it comes to investment homes and short term rentals. At the end of the day, it’s important for the board and association management company to determine what works best to build community and improve homeowner apathy. Here are a few things that can be done:

• Add to your CCR that homeowners must live in their home for a certain period of time within a give year – six months is a popular timeframe. This will curtail investors who plan to leave the home completely empty, but allow for flexibility for more engaged investment homeowners.
• Restrict vacation rentals to a certain number per homeowner per year. This will allow for short term rentals without having short term rentals encompass the vast majority of the community.
• Require homeowners to notify the board of each rental. This will ensure that the board can monitor any issues with violations from renters, and it can give them the ability to further review violations management with the owner. Such a measure would also force homeowners to be more mindful of the types of renters they approve – they may choose, for instance, to decline a potential renter with a low rating on a short term rental website.
• Keep homeowners abreast of the rules and regulations that are determined by the board through your digital communications. Upfront, transparent communication is key when working with homeowners wishing to tap into more investment opportunity.
• Finally, focus on what you can control the most: homeowner apathy. Community-driven events, digital polling and survey features, and maintenance updates to communal areas are all ways to drive engagement for everyone – even for a homeowner who may not live there all the time.

Last week we had the pleasure of attending the CACM 2022 Norcal Law Seminar, where we celebrated their 30 years of serving community association management companies in California. We had a blast connecting with industry partners, getting to know new professionals, and building our TikTok presence! Best of all, we teamed up with AvidXchange to give away a hot air balloon ride across Sonoma Valley!

In addition to giving away free excursions and becoming social celebrities (okay, not yet, but we’ll get there!), we also learned a lot about what community managers need from their property management software in 2022 and beyond that, in some cases, are unique to California. Here are our key takeaways from the Norcal Seminar:

Homeowners need to see innovation in their HOAs and COAs

While all homeowners across the country are vying for better technology through their homeowners associations, California residents have a tendency to have higher expectations in the tools provided to them. Mobile apps, multiple ways to pay, and real-time communication are must-haves, and many community managers were excited to see our custom-branded homeowner and board member app. Software that isn’t built mobile-first for the homeowner and board member, as far as we’re concerned, simply won’t stand the test of time for the rest of the 2020s.

California homeowners need to opt in

GDPR rules and regulations upended the digital world in 2018, and these laws lead to very strict communication guidelines in Europe. While the United States is a bit more lax in regulation, California residents are more acclimated to GDPR than other states. This is likely because they are living in the global tech hub, which has to address privacy laws across all countries.

So what does this mean to you? In California it’s important that homeowners are able to determine their method of correspondence (digital or physical mail) and have the ability to opt in and out of communications. If you are sending homeowners communications via email, you need to be sure that they have consented to receive such communication – this may be completed, for instance, through a flagged notification on your website. It’s important to discuss with your software provider opt in and opt out capabilities and ensure that your homeowners are able to determine for themselves whether they’d like to receive electronic or physical communications.

Flexibility in address delivery is key

Many homeowners in California utilize secondary addresses for different types of correspondence, and these secondary addresses need to be utilized by the association management company. This is especially true for collection letters, in which mailed correspondence must be sent to multiple addresses when requested. Not every software provider has a secondary address option, which can be very cumbersome for community managers. Be sure you’re working with your software provider to improve flexibility for your homeowners in a manner that’s easy and efficient for your teams to manage.

EDD reports are a must

EDD reporting is extremely important in California, as businesses and government entities are required to report to the Employee Development Department (EDD) on all independent contractors. Independent contractors must be reported if: 1) You’re required to file a 1099-NEC or 1099-MISC for the services performed; 2) You pay the independent contractor $600 or more or enter into a contract for $600 or more; 3) The independent contractor is an individual or sole proprietorship. We suggest connecting with your lawyer and your software provider to ensure your EDD reporting is being completed appropriately.

Time management continues to be a hot topic

This isn’t unique to California, however it’s still very important to keep at the forefront of our minds. We had the pleasure of hosting the educational series “Do More, Stress Less,” where professionals openly discussed their challenges in managing their to-do list on top of all the other urgent needs that occur at a moment’s notice. A solid scheduling management system is key within your organization – one that automates reminders for routine maintenance, provides owners a big picture glimpse into their teams’ workload, and makes it easy to schedule time on and off the clock. CINC’s Portfolio Manager is one tool that we’d definitely recommend. It serves as your virtual assistant, managing your tasks, ensuring essential manners are handled, and helping you alleviate yours or your teammate’s workload.

We’d love to know what you learned at the CACM Norcal Law Seminar! Reach out to us to share your insight, and if you’d like to learn more about our product wows that support California management companies and the whole U.S., check out our Top Wows of CINC.

The last couple of years has been a bit of a roller coaster. It feels as though every time we start to creep forward, something finds a way to drag us back just a few feet back. It’s taxing, and it’s impacting a lot of our day to day lives. While many of the problems we faced last year are going strong this year, we’ve come up with some new ways to handle them and steer into the anticipated trends of the year ahead. Here are the 4 trends we think the community association management industry can count on for 2022:

Staff Burnout: Rethinking Work/Life Balance

I think it’s safe to say we’re all a little bit tired. Tired of talking about, thinking about, and reliving the pandemic every time a new variant sweeps the population. Tired of the impact it’s having on friends, family, coworkers, neighbors. And that means that the amount of work we used to easily pile onto our plate can feel like a triple serving that we just can’t handle.

This year, with so many of us in the deep end of feeling burnt out, the conversation will start revolving around new approaches to a work/life balance. Incorporating new plans to stave off burnout may not pull us out of the deep end, but it will certainly stop us from sinking any further.

Here are two ways your management company can give burnt out community managers the tools they need to keep their heads above water:

• Calendar Contortion: schedule flexibility has been a savior for many in recent times, but it might be time to step up that game. Shutdowns, quarantines, and hyper-contagious variants are all brewing up the perfect storm of chaos for staff with tight schedules to maintain, like school or extra-curricular activities for kids, doctors appointments for ill loved ones, or shared transportation in a family. Laying out clear guidelines that give your staff the freedom to juggle their busy lives on the fly, and clear support and engagement from executive management will be a crucial step in helping your teams feel like their needs are being met and exceeded without having to go through red tape or guilting to handle their personal lives.
• Rapid Recognition: There’s a ton of science to prove the benefits positive reinforcement has to offer. Who knew that celebrating and praising people would make them want to do even more? The happiness that people feel when being commended for their achievements can also be a powerful way to counterbalance burnout. The more unsung successes people have, especially when they’ve sacrificed countless sleepless nights, missed moments with loved ones, or just a general feeling of stability and sanity, the deeper they fall into that pit of burn-out despair. Consider implementing structured, achievable goals for your staff to work toward, and consistently and publicly reward the effort.

Continued Reliance on Technology

Microsoft founder Bill Gates believes that meetings across the world will be hosted on Facebook’s newest endeavor, Metaverse, in the next two to three years. While I personally hope the internet isn’t about to be monopolized by a social media platform, I (and many other technology experts) can say with certainty that much of our time will be spent using some kind of internet-tethered tech.

As closures and shut downs have been repeatedly enforced and lifted throughout the last two years, technology giants have been hard at work developing new ways computers can fill the gaps we’re starting to see. Here’s what you should consider when it comes to software not only for your management company, but for your communities as well:

• Reinforced Remote Work: The time has come for communities and community management companies alike to embrace the wealth of technological support our industry has to offer. Social distancing will come back in striking force with the contagious nature of the COVID-19 variants cropping up recently. Technology that can support your boards’ day-to-day task management without forcing them to share an office will once again be an important theme in 2022.
• Technical Training: As beneficial as new technology is for everyone, it always comes with some kind of learning curve. Even Milennials, who grew up learning new technology as it came into being, are struggling to keep up with the rapidly-evolving technological landscape of today. So your boards are almost certainly going to have a hard time. Building out some kind of “Intro to Community Association Management Software” cheat sheet could be the key to coaxing your boards into accepting the fancy new toys you can bring them to make their lives easier.

Massive Repairs to Condominium and Co-op Buildings

Interestingly enough, this trend is arguably one that has not been directly impacted by the global events of the last two years. Community associations of all shapes and sizes have a long history of deferred maintenance. Unfortunately, this past year we saw the worst-case scenario of what can happen to large multi-family buildings that forgo important maintenance for too long.

The collapse of Champlain Towers South was an eye-opening tragedy for the industry, and as a result, Fannie Mae issued temporary guidance for all condos and co-ops until further notice: units in buildings in need of repairs for what FNMA deemed as “significant deferred maintenance” would be ineligible for FNMA loans until necessary repairs have been made and correctly documented. The letter goes on to define exactly what they will classify as “significantly deferred maintenance” and any other unmet requirements that would also make a building ineligible.

Here are some of the ways that will impact your communities:

• Proactive Planning: This year, some of your communities may fall into this group of buildings. Hopefully that number is low, but if not, one of the best things you can do is create an outline to help each board plan. Their specific financial planning can come later, but providing them with a set of suggested steps to take, like tips to create a timeline for repairs, will take some of the weight off of the project they have ahead of them.
• Commitment to Community: Something your boards in this situation will need to seriously consider is the impact this will have on their community at large. Especially in buildings where there is enough deferred maintenance that completing it all will take a lot of time. This will mean that some of your unit owners looking to sell and move elsewhere could face difficulties, which could create negativity toward the board. Encouraging your board to approach the community with honesty and a clearly defined plan of action to fix the situation will be crucial to maintaining the trust of the community.

A New Perspective on Reserve Funding

Thanks to those new regulations from Fannie Mae, condo and co-op buildings across the country are about to face a reckoning. One that will extract a heavy toll from any existing reserves they might have in place. 2022 is going to be a difficult year, spent juggling finite dollars across a series of expensive projects, and still somehow being used to keep a reserve fund from going empty.

We’re fully anticipating a strong focus on reserve funds, but whether that focus is positive or negative will depend entirely on the state a community is in–if they have no maintenances impacting FNMA loan eligibility, they will probably be eager to continue funding their reserves. But if they’re standing face to face with an ever-growing pile of bills to resolve maintenance issues throughout the community, they’re probably eyeing those reserve funds as their only saving grace.

Here’s how to approach each type of community:

• Balancing Budgets: For communities not about to pay through the nose for building repairs, there’s likely some sense of relief. But that relief needs to be kept in check. It isn’t enough to just remain business as usual. Staying on top of reserve funding will still be important, as will staying on top of their maintenance schedule–FNMA can determine a building to be in need of “significant deferred maintenance” at any time while their restrictions are in place. So creating a budget that supports future needs, while handling current maintenances, and keeping residents happy (which is, of course, the whole job description) will likely feel like a new burden to bear. Compiling time-tested tips and tricks for budget building that include ways to prioritize maintenance needs and manage the perspective of community members will offer a great deal of support to your boards.
• Trading Troubles: Communities facing a laundry list of repairs are likely thinking about depleting their reserves without adequately adding to them to solve the problem right in front of them as quickly as possible. This is a trap. All this will do is take the problem at hand and mold it into the same problem in the future. Impress upon your boards the importance of replacing the money they’re spending to complete repairs. It doesn’t need to be an exact dollar for dollar match, but there should be a serious effort to maintain healthy (if not lean) reserves even in the midst of heavy spend on maintenance. Work with your boards to prep them for the conversation they will inevitably have to have with the community about increased assessments and the importance of contributing to the community.

It’s been a week since the CAI National 2021 Community Now Conferencein Las Vegas, and we’re still floored. First of all, to pull off a conference in the middle of a pandemic is incredibly challenging, and we can’t express enough how well the CAI team did in executing an incredible event amidst such adversity. Second, it was a wonderful experience to have all of us come together, discuss key challenges, and learn from one another (while still having fun!)

At CINC, we mingled with our clients and partners at a High Roller Welcome Party, where we gave away thousands of dollars worth of prizes and learned how to game like a Vegas pro. Our trade show booth was all about mobile-first experience for community managers and HOA/COA boards, as we see this as a top priority in the industry.

Through networking events and the CAI education sessions, we had some key learnings that will continue to drive our product and service innovation beyond 2022. Here are our top five takeaways:

1. People Operations is the #1 Priority

Job openings left unfilled for months on end. Candidate no-shows at interviews. New employees quitting without notice. Like many industries, it’s becoming alarmingly difficult to keep good talent And in the same way we have rethought a lot of how-it’s-always-been norms as a result of the pandemic, it’s time to rethink HR. For that, we turn to people operations.

People operationsmeans offering a people-centric approach to the day-to-day functions of the business. It’s about empowering employees to drive growth through personalized coaching and involvement in the company’s mission and vision, and automating work tasks to further drive motivation and dedication.

Technology plays a major role in driving people operations. The more mundane tasks a community manager has to complete because of outdated software, the less time they’re spending growing the value within their community (and the greater chance of employee dissatisfaction). Focusing on efficient, automated processes for your employees is one of the top strategies to improve retention and turnover, and it gives you the chance to provide your teams the ability to be a part of the big picture within your CAM.

For more on how to improve people operations within your management company, check out our feature with David Priestley, CEO and Founder of Priestley Management Group. And if you’re currently trying to fill some entry-level roles, here are things you should never say when interviewing a Gen Zer.

2. Management burnout is real, and it’s getting worse.

The lockdown from 2020 didn’t mean that community managers relaxed at home – in fact, they worked harder than ever, assisting an influx of residents stuck at home and managing extremely challenging situations, such as assisting homeowners who no longer should pay their HOA/COA fees. As CAM employees stepped up to the plate to support their homeowners and guide their boards during some of the most difficult times witnessed in the past century, it’s important that we step up to the plate to support their needs.

CAM owners need to be sure they are periodically checking in with their community managers on the level of stress they’ve incurred in the workplace. Increased break time, meetings to openly discuss mental health challenges, and one-on-ones to help break down large challenges into smaller tasks are just a few ways owners can help alleviate stress that can lead to burnout.

3. Prepare for the worst – and be prepared to discuss how you prepare for the worst.

It’s no secret that the Surfside Condo collapse upended the community management industry, and it was a heavy topic at CAI National. As we all come together to mourn the tragedy that occurred in Miami, we all need to come together to discuss how we can be sure it will never happen in our communities.

The big takeaway from Surfside was that a more thorough review process of building integrity is necessary, and if there are warnings of erosion, it should be taken seriously. Some community associations may also be concerned of a lack of available funds to complete large maintenance projects. This means that boards may need to revisit their budget and accounting plans to ensure they have enough to keep building structures up to par. If funds aren’t available, one should work with their financial partner to discuss developing a reserves fundthat will alleviate financial stress when an emergent matter comes into play.

4. An app is an absolute.

We’ve been saying for quite some time that mobile-first design is a must-have for emerging homeowners. That’s why we decided to adorn our trade show booth with mobile technology for community managers, homeowners, and HOA/COA board members. Attendees loved seeing firsthand how our CINC Manager app keeps community and property managers in the field with their clients, and how the HOA and board app is custom designed to their brand and their homeowners’ needs.

In a recent research study we did with homeowners across the United States, the number one preferred way to manage HOA/COA payments was through an app. One can only assume that as more and more Millennial and Gen Z homeowners emerge, this will continue to be the norm. If your community association management company does not have an app, and your software provider doesn’t provide this technology, connect with us to see a custom demo.

5. One thing is certain in uncertain times – community matters.

In a moment where so many domestic and international events are causing distress and confusion, it’s difficult to stay positive during the day-to-day. However when a community comes together to support one another, great things happen.

Our associations give homeowners the ability to connect, collaborate, and bolster spirits. And the community spirit we’re able to provide goes a long way. So, when we stay focused on providing value and camaraderie to the homeowner, business can prosper. There’s more to come on this topic from us, but you’ll have to wait to hear it at CINCUp ‘21.

“I’ll see you in two weeks!” Remember when we said that to our employees on the second Friday of March 2020? We all sincerely believed that we’d spend a couple weeks sprawled on our couch, semi-working while semi-catching up on our favorite reality TV show. It seemed like a nice staycation.

Boy were we wrong. In a matter of weeks we witnessed our fellow neighbors losing their jobs, pulling kids out of school, catching COVID themselves, and worst of all, some of them dying.

Weeks turn into months, and what was once a minor inconvenience soon spiraled into a major catastrophe. And COVID-19 wasn’t the only crisis we experienced in the past year – brutality against people of color forced all of us to closely re-examine the way we treat one another, and massive political division drove tension that one couldn’t even escape through a Zoom-enabled Thanksgiving dinner.

We’re now approaching the second half of 2021, and while this may seem like a whirlwind of a year, there are many reasons to feel hopeful. Almost 30% of the U.S. population is vaccinated. Case counts continue to drop. Schools and small businesses are reopening, and CDC guidelines are relaxing for those of us who are vaccinated.

What does this all mean? Some of us have excitedly purchased our first plane tickets in over a year for a summer trip. Others are still hunkered down in “wait-and-see” mode. None of us have a magic wand where we can capture a glimpse of exactly what the end of 2021 will be like, but we are all trying to rebuild our lives to some sense of normalcy. And when it comes to the way we lead our community associations, we are all asking one another one simple question: What’s next?

We’re not done.

If you’re an avid TikTok scroller, you know the song, “The Pandemic Isn’t Over Just Because You’re Over It.” It’s not just a catchy tune, but it is a matter of fact. We certainly should be planning ahead to drive homeowner engagement and satisfaction, but that doesn’t mean we can throw away all of our masks and pretend there’s no risk. We can move forward, but we can’t do so without looking back.

Associations should carefully review CDC community guidelines, which are regularly updated, to ensure that homeowners and board members are safe when conducting HOA/COA affairs. This means continuing to hold virtual meetings, wearing masks in social gatherings, and practicing social distancing. As the summer approaches, you may also want to consider limited occupancy for pools and recreational areas and enforce online reservations.

As we continue to maneuver through the Pandemic, we know that communication is key in driving homeowner engagement, transparency, and satisfaction. Vaccination protocols vary greatly among states, and many of your residents may be having trouble understanding when and how they can get vaccinated. Offering updates through your website and app and links to book appointments are great ways to help everyone in your community stay informed and safe.

We shouldn’t just go back to the way things were.

Sure, 2020 was a dumpster fire of a year. But we did learn a lot that we shouldn’t throw out the door the minute things start to feel back to normal. Spoiler alert: We don’t always have to be face-to-face to get the job done (and get it done well).

Many of us have realized that HOA/COA board meetings are just as productive, if not more productive, through Zoom versus in person. The same goes for monthly board meetings and many small gatherings. The same is true for our own employees, too. From Fortune 500 to start-ups, many corporations are preparing for a return-to-work scenario that looks significantly different from the past. Some employees may choose to work remote for 100 percent of the time, while others may adopt more of a hybrid approach. This is true within our own industry, too: David Priestley, President of Priestley Management Company, intends to allow his staff to continue remote work for part of the week, as this flexibility has improved employee satisfaction. Thanks to robust cloud-based systems, he’s able to do that with ease.

In the past year, we also learned a lot about virtual tools. While virtual happy hours should probably be abandoned the moment we’re able, virtual webinars and learnings are great ways to break up the day while gaining valuable insight to grow one’s business. There are also many tools in our community association arsenal that have transformed from a nice-to-have to a full-on necessity. From mobile apps to broadcast texting, staying connected via the phone is here to stay.

Diversity isn’t just a fad.

According to the Community Associations Institute, 53% of surveyed community association managers said they are aware of at least one diversity and discrimination complaint among their residents. Diversity, equity and inclusion policies aren’t just trending topics as a result of the rise in hate crimes and social justice initiatives. Proper implementation of policies and training will help better support your homeowners while driving the engagement of your incoming Gen Z employees.

Implementing a pledge to promote equality and non-discrimination, like the one created by CAI, is an important start in driving DEI initiatives within your community. Offering trainings for employees and board members on how to handle reports of discrimination and fair housing policies are also important. Diversity also means celebrating one another’s backgrounds and differences, and this can be done through a myriad of cultural events and communications. For instance, your community could highlight holidays from all religions and cultures in your events calendar. You could even (when it’s safe!) promote “around the world” gatherings to try foods and drinks from different cultures. These inclusive events can be exercised within your own team of employees as well as your HOAs/COAs.

Preparing for the next worst-case-scenario

Let’s go back to the first question posed: What’s next? Now that we are rebuilding our world after one of the biggest crises in our lives, how do we plan for the next big-worst-thing? The biggest lesson many of us have learned from this experience is that through it all, community association management companies need to have a business continuity plan.

Business continuity planning creates a foundation of ongoing support for your business in the event of service disruption. These plans try to account for all manner of disasters, from the predictable to the not-so-predictable.

A proper business continuity plan helps an organization:

• Sustain critical business functions during disasters;
• Develop a before/during/after plan for crises, from a moderate to severe state;
• Keep employees prepared and trained for times when disaster recovery falls in their hands, and;
• Create achievable recovery plans once the crisis is over

If you’re unsure of how to build out your business continuity plan, have no fear. We have a guide just for that – because one of the biggest lessons we learned from 2020 is that we need to be more prepared. To develop your business continuity plan, check out our Emergency Management Guide.

We may not officially know what’s to come, but we do know how to prepare for it to the best of our abilities. And one of the best lessons we’ve learned from this past crisis? We’ve learned just how resilient we are.

Remember when the only conversation concerning Millennials had to do with how much they loved avocado toast and hated real-world responsibilities? Well, now they serve as the fastest growing segment of homeowners – and they come with a new set of expectations.

Millennials are currently the largest share of home buyers at 38%, and with the oldest Gen Z-er turning 24 this year, both generations will soon encompass the majority of the homeowner market. To stay competitive within the community association management space, it’s important to understand these two generations – who they are, how they wish to communicate, and what they expect from their digital experiences. This in turn will help you determine which features in homeowner engagement and property management are essential to your business.

Millennials: Broke, Burned Out, and Desperate for Connection

While Millennials are more educated than past generations, the paycheck hasn’t caught up with the diploma. Millennials on average earn 20% less than baby boomers did at the same stage in life, and with the current state of the economy, that gap is only expected to widen. The average millennial meagerly entered the workforce during the Great Recession, is still scrambling to pay off student loans, and is burning out fast from long work-from-home hours. It’s no wonder that this generation is facing a surge in depression and other mental health issues. Do you feel bad about all the avocado toast jokes yet?

Building community through technology is a powerful way to keep Millennials connected and engaged within an association, and this in turn will grow your company’s competitive edge. Ensuring that your HOAs are utilizing the events and reservations section of their websites while offering community-driven events are great ways to promote much-needed camaraderie.

As you acquire more Millennial homeowners, you will also find more Millennials joining your HOA boards. It’s important to consider what marketing messages drive Millennial audiences and how this comes into play for your acquisition strategy. Consider this, for instance: A whopping 97% on Millennials read online reviews before choosing to purchase a good or service. It’s imperative to respond to your own reviews on Google, whether they are good or bad, and to ask for a review when you receive positive feedback from an HOA board. Showcasing this authenticity and high level of service will go a long way in making a positive impression.

Gen Z: The Digital Native is Here, No Cap

The first generation to grow up with the Internet is now old enough to order a drink, get a job, and own a house. And the digital native lifestyle of a Gen Z-er will certainly have an impact on the demands homeowners will have for your community association.

Similar to Millennials, Gen Z is also driven by community spirit and philanthropic events. Gen Z is also the most diverse generation in the United States to-date, and their yearning for diversity and inclusion inspires their Millennial counterparts. While Gen Z hasn’t faced the same setbacks as Millennials (they’re still young, after all), they have been witness to the economic impacts of the recession, student debt, and the global pandemic. This means that they yearn for the same community outreach as Millennials while also expecting a higher degree of flexibility in their everyday lives.

When it comes to technology, it should be no surprise that Gen Z is doing almost everything on their phone. Gen Z is far more likely to use their phone to perform everyday activities – such as shopping and watching television – than Millennials. This means that for any HOA in which they reside, they will expect that they’re able to perform everyday homeowner activities on their phone, whether they are making a payment or following up on a violation.

Preparing For Your Future Homeowners Today

While you don’t have to worry about learning a new TikTok dance to impress your future homeowners and HOA board members, there are some technological expectations that both Millennials and Gen Z-ers will have for their association.

Mass Communication

For these generations, waiting around for the mail is a no-no. Broadcast email and texting capabilities, as well as individual messaging and email options, are necessary ways to work one-on-one with Millennial and Gen Z homeowners.

Mobile-First Approach

Millennials and Gen Z will expect that they are able to review ACC requests, record violations updates, and make payments from anywhere at any time. This means that a mobile-first approach to your homeowner and HOA board solution is a necessity. Mobile payment solutions should perform better or on par with a desktop experience.

All-in-One Platform

Fragmented systems mean that it’s more likely homeowners will have to go from one site to another to make a payment, review a violation, and complete other tasks. For Millennials and Gen Z-ers, a seamless platform to complete everything in one place goes a long way in delivering quality service.

Digital Community

As discussed earlier, anything an association can do to embrace community and engagement will go a long way for both generations. Your web portals should highlight these programs through event calendars, online reservations, photo galleries, and broadcast message capabilities.

How CINC Helps You Stay On Track

An all-in-one SaaS-based solution like CINC Systems will help you stay ahead of the curve with tech-savvy homeowners. Here are a few key product features from CINC that create the seamless experience Gen Z’ers and Millennials know and love:

• Custom Homeowner App – Homeowners can manage everything on the go through a mobile application custom-branded to the association.
• Enhanced Homeowner Communications – Online homeowner portals, mass communication, and individual messaging make it easy to communicate with the right people whenever and wherever.
• Property Management Mobility – The CINC Manager app helps property and community managers complete all of their tasks right in their neighborhoods, from violations to ACC requests. Not only does this speed up communication for homeowners, but it allows more face-to-face time with your association, therefore improving customer satisfaction.
• Board Member Portal – Through CINC, board members have access to financials, communication tools, and budget information through their own custom-branded portal. This helps board members stay on track and up-to-date without having to constantly reach out to their community manager.

Moving Into the Future

The expectations from our new and soon-to-be homeowners may feel overwhelming, but it’s quite simple – they need quick communication and seamless digital processes to feel satisfied with your services. If you’re interested in seeing how CINC’s digital experience can give you a competitive edge, check out our product tour and schedule time with us to see a custom demo.

Remember this time last year, when the biggest problems facing community associations  included short-term rentals, emotional support animals, and short-wave radio antennas? Those were the days!

2020 taught us that there are much bigger things to worry about in this world. Half of us got our own emotional support animal (or at least thought about it!) The other half were eying those ‘eyesore’ antennas so you knew where to go, ‘just in case.’ Hey, we won’t judge!

And while 2020 was a nightmare roller-coaster of a year, there were some trends that came out of it for community associations that are likely to stick around for the foreseeable future. We wanted to take a look at some of the positive trends brought forward from 2020, as well as a few consequences of the past year that you should watch out for:

2 Steps Forward: Good Trends that Should Carry Over to 2021

The community association industry can be slow at adopting new trends, be they technology-based or otherwise. So when the nation went into lockdown and the industry was forced to move forward, some very positive results came about – ones we expect to stick around.

Electronic board meetings

One of the barriers to getting new board members to serve has always been scheduling. It’s hard to find a convenient time for officers to drop everything and get together in a room for an hour or more each month. Under lockdown, Condos and HOAs were forced to move board meetings online, via Zoom or other tools.

While there’s something to be said for face-to-face meetings, we’ve seen some really positive changes as a result of online meetings. Side-chatter and parking-lot meetings are all but eliminated. Attendance has improved due to easier access, and meeting times overall have decreased. This is one trend we think has been a net positive for busy board members and is sure to continue past the pandemic.

Paperless Financials

Consider the tree’s worth of printed paper reports every month when board members received the monthly financials a thing of the past. The lockdown prompted community associations to move from paper reporting to PDF reporting, and guess what? The world didn’t end!

Tools such as CINC’s document imaging module allow community managers to take the association’s records paperless – creating board packages in no time flat, and storing them in the cloud for board members to access any time. This is a great example of a technology we’ve had for years, yet the industry was slow to adopt. We say, it’s about time! (And the planet thanks you, too.)

The Rise of the Portal

(More Deliberate Online Tools for Homeowners, Board Members)

One can consider the community association digital landscape as the Wild West. Some communities have thoughtful, content-rich, useful online tools like websites and homeowner portals. Some communities rely on social media groups for communication – unfortunately, these groups can lead to gossip mills and angry rants.

With the lockdown, homeowners and board members needed easy, electronic access to community data. Enter online portals. From supporting online dues payments, to document downloads, to activity tracking, online portals simply make it easier to run and live in a community association.

Increased Demand Leads to Higher Property Values?

During lockdowns, new home construction across the country slowed down to a fraction of the rates in prior years. That doesn’t mean the demand has slowed! So expect 2021 to bring in increased demand for homes, likely raising property values and making community associations an attractive option for potential homebuyers.

3 Steps Back: Long-Term Consequences of 2020 to Prepare for in 2021

Of course, not all trends that carry over from 2020 will be positive. Community associations should prepare for the consequences that we’ll be dealing with once the virus is conquered. Here are some things you need to consider carefully:

More Support for Working From Home

One result of the worldwide lockdowns is that many companies have discovered they really don’t need a physical office to get things done. Already, some major players have implemented long-term remote work policies for their workforce. One source estimates that 25-30% of the US workforce will continue to work from home post-pandemic.

For HOAs and Condo Associations, this means the pivots they have had to make to accommodate home workers during lockdowns are likely to stick around. While we see this as a positive trend for workers and residents, boards will need to put some thought into what this looks like long-term. For example, if your community has restrictions on running private businesses from home you may need to review and revise your CC&Rs to accommodate the new workforce.

Increases in Usage Lead to Higher Maintenance Costs

With more homeowners staying in, the cost of everything in the community goes up. Utility usage and Internet access are at all-time highs, while facility usage in the community is likely to increase once the vaccine becomes more widely distributed. This can lead to increased costs for the community, which you may not have accommodated for in your budget.

Suppressed Assessments Lead to Underfunded Reserves

With millions still out of work, many boards have opted to not raise assessments in 2021. While this sounds admirable and certainly is welcomed by homeowners, there is a potential downside for the community association overall.

By choosing to keep assessments low, many communities will be short funding their reserves to make up budget differences. This can have long-term consequences for the community. While the decision is up to each individual board, remember, a ‘fingers crossed’ approach to financial management is not healthy for any organization, and if 2020 taught us anything, it’s the value of preparing for the worst-case scenario.

Possible Increased Legislation?

The Pandemic already brought us things like foreclosure delays and other legislation to help keep people in their homes. However, the long-term effects of the pandemic are still unclear to us at this point. What we do know, however, is that lawmakers will be looking at all angles of the problem to try to help the economy recover. While some states have significant legislation regarding HOAs Condos and Co-ops, others have barely even recognized the industry. That could change in 2021 as lawmakers look for ways to ease financial burdens on homeowners.

We are all looking forward to 2021 being a better year than 2020, but there is value in learning from the past. We hope that we’ve given you some insight to prepare for the road ahead.

One thing we know will help – CINC Systems. CINC’s cloud-based community management software provides the online tools that management companies need to support their clients now more than ever. CINC users suffered no technology gaps or loss in service due to the lockdowns. All their accounting and management tools were already in the cloud! Talk to your management team to see if they should Get in CINC today.