Since the end of the year is now approaching, HOAs need to ensure that they have completed all of their required tasks to successfully close out their fiscal year and end of year strategic planning. When considering what tasks need to be completed before 2019 ends, it is wise to review the list below to ensure and make sure that your HOA has completed the required tasks to start 2020 with success.
Has Your HOA Board Sent Out the Required Annual Disclosures?
The financial year ends at the end of December. Your HOA must send out its required annual disclosures before the fiscal year closes. This is the best way to avoid any penalties or suspicions that the association is not being managed above board. If your HOA board members are having trouble understanding the annual disclosure requirements, it is best to work with an accountant to provide pertinent advice on what information needs to be filed for the annual disclosures of the association.
Did You Update Your Reserve Study?
Reserve studies are important to see how much of the membership dues are left in reserves for the HOA to utilize for its expenses. It is the responsibility of the association to figure out whether it will need special assessments if they don’t have reserve funding left. Special assessments are a subject of controversy since members rarely want to contribute additional funding to the HOA. Special assessments also can call into question how the budget of the association is being managed. Make sure to study your HOAs reserves carefully to be sure the board has a clear picture of the health of the HOAs finances going into the new year.
Assess the Status of Major Projects and Whether They Need to Be Continued in the New Year
If your HOA has completed major projects, make sure that they are ideally completed by the close of the year. If it is impossible to complete the projects before the end of the year, make sure to put capital in next year’s budget to cover the cost of the project’s completion. This way, the budget will be well-organized in combination with next year’s expenses.
Have You Reviewed Your Rules and Regulations?
The end of the year is a healthy time to review rules and regulations within your HOA. Try to look at how policies are working and whether additional regulations need to be enacted. Make sure to publish these new regulations before the end of the year and provide a date in the next year where the projected regulations will go into effect. By providing a transition period, it will be much easier for residents to adjust to the changes while raising minimal complaints.
Have You Planned Your December End-of-Year Gathering?
Residents greatly appreciate end-of-year gatherings that are organized by their HOA. This is a great way to continue to foster a close community amongst residents. Social events are an excellent way to make announcements for upcoming events and planned projects for the next year while residents celebrate the close of another year.
Have You Finalized Your Budget for Next Year?
Having a concrete budget before the end of the year is essential. HOAs that do not do this struggle with how to effectively organize their money. Make sure that your HOA has begun talks about next year’s budget and successfully agree before the year ends.
Have You Scheduled Officer Elections for Next Year?
Board elections need to occur regularly. Make sure to schedule the elections and make them well publicized so that your residents can make efforts to vote when required. By having transparent elections, it will increase morale amongst residents that the HOA is conducting their practices ethically.
Have You Planned Enough Gatherings for the Coming Year?
Residents have busy lives. It is important to have a social calendar posted for the upcoming year. Granted, events will come up but having a framework for the social gatherings for the next year is a great way to increase resident attendance and strong community building.
What Are Your HOAs Goals for the Next Five Years?
At the end of the year, it is a good time to assess what the HOA hopes to achieve in the next five years. For example, are there any large projects that are going to require substantial funding? HOA board members need to discuss the strategic goal for the HOA so that the HOA will be able to sustain the capital required and that there is a clear effective management strategy to ensure the HOA is running at its optimal capacity.
Is it Time to Hire an HOA Manager?
If the demands of the HOA have become cumbersome and the quality of service to residents is being compromised, then it is likely time to consider outsourcing certain management tasks to a company experienced with HOA Management. Consider having this discussion at the end of the year to be able to project the cost of hiring an HOA Manager and the potential benefits it will bring to the community of your HOA.
How Elite Management Services Can Help
Elite Management Services (EMS) has many years of experience assisting HOA Associations with their management practices. Our main objective is to introduce cost-effective management practices that improve the quality of life of residents of our communities. Our approach enables us to have a personalized relationship with our clients to ensure the success of their communities. We achieve this by customizing our HOA Management model to fit the community’s unique size and particular requirements. Depending on where your community is located, our experts will be able to customize an HOA Management strategy that is tailored to your community’s individual needs. By deciding to work with an organization such as EMS, you will see a great improvement in your community’s finances and efficiency, which will have a positive impact on the satisfaction of your residents.