The Community Association Institutes indicate that there are 338,000 community associations in the U.S. With the average size of each board being five members, there are over 2.3 million individuals who step up, volunteer personal time and take on the…
3 Ways HOA’s Improve Property Value
Typically, property values are based on the location, size and number of bedrooms and bathrooms of the home. Clearly, the HOA has no impact on the property size, location or structure type. However, if two similar homes are located in similar areas with similar associations, what can make one home more valuable than the other?
- Selecting the best qualified, not necessarily the least expensive contractors is an investment. Focus on the best repair for the long term, not the quickest or least costly.
- Consistently enforcing rules pertaining to individual owner exterior maintenance. While the entry and community areas naturally receive more focus, don’t sacrifice maintenance levels in other areas that are also visible to owners and visitors to the community.
- Plan ahead – will exterior paint colors still look contemporary in five years? What plant or tree material will require replacement due to age or other considerations?
- Maintain a consistent and timely collection policy. Mortgage lenders consider HOA effectiveness with collection efforts.
- Strive to keep delinquent accounts at less than 10 – 15% of the total number of units.
- Increase funding to the reserve accounts – ideally, reserve funding at 70% or more avoids the potential for special assessments and meets most lender requirements.
- Stay out of litigation by following Civil Codes, requirements of legal documents and other advice or direction from experts.
- Review insurance policies regularly – does the HOA maintain the best types of coverage at higher than minimum limits?
- Educate and respond to the homeowners. Homeowners should be helped to realize that one bad article one bad call to the local news, one bad video on YouTube or Facebook comment can go viral.
- Consider implementing a public relations drive within the community. Does your Association have a website that presents a “face” to the public? Are volunteers (including Board Members) recognized for their volunteer time?
It is clear that your HOA can do many things to improve property values. If your home’s value increased over $3,000 because of Association improvements, wouldn’t that be worth a couple of extra dollars per month in assessment fees?
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