You must have a basic understanding of HOA financial statements to run a homeowners association. After all, keeping your HOA’s finances transparent and accurate is crucial. The homeowners in your community want to know where their money is going. Understanding HOA financial documents will also help you decide how to use your association’s funds wisely.…
Now and then, a homeowners association will run into financial trouble and require an immediate solution. In addition to special assessments, most boards turn to an HOA loan. But is a loan even advisable? What Is an HOA Loan? An HOA loan is simply a sum of cash that a homeowners association borrows from…
Paying HOA fees is a part of living in a homeowners association. But, what are HOA fees anyway? And what do they cover? What Are HOA Fees? HOA Fee Meaning Explained One of the things potential homebuyers should consider when hunting for homes is whether or not the property belongs in an HOA community.…
HOA payment plans are a common remedy that homeowners associations adopt to lower delinquency rates. But, is there a requirement for HOAs to offer these plans? And how do they work exactly? What Are HOA Payment Plans? A payment plan is an agreement where a homeowner promises to make regular payments to a homeowners…
The HOA budget meeting is an important event in any homeowners association. Make sure all goes well with yours by adopting these tips for planning and presenting your annual budget. How to Prepare for Your Annual HOA Budget Meeting Budget planning is an essential part of managing a homeowners association. It sets the ground…
Not all members of a homeowners association pay their dues on time or even at all. But, when push comes to shove, is hiring an HOA collection agency really the best option? Establishing the Need for an HOA Collection Agency Many homeowners associations struggle to keep their delinquency rate low. A high delinquency rate…
It is best practice for homeowners associations to establish and maintain a reserve fund. But, if you have never encountered the subject, understanding your reserves can be somewhat difficult. When it comes to your reserve fund, it pays to know the HOA reserves rule of thumb. All About HOA Reserves Rule of Thumb Before you…
Reserve studies are an integral part of maintaining a healthy HOA reserve fund, but many associations underestimate just how important it is. Here is what you need to know about your association’s reserves and how a reserve study affects them. The Purpose of an HOA Reserve Fund What is an HOA reserve? Also known…
The homeowners association budget is a major responsibility for the board. Creating an accurate and well-thought-out budget ensures the financial health of your community — not just for the next fiscal year, but for many years to come. For new board members who are not yet familiar with this process, here are HOA budget guidelines…
What is capital improvement? How is it different from maintenance and repairs? These are two very common questions asked by homeowners. To understand where part of your monthly association dues goes, here’s what you need to know about capital improvements. What Are Capital Improvements? Capital Improvement Definition. A capital improvement is a structural addition or…