What does a management company do for a HOA?

Although the services offered can vary, most companies provide the following services: Accounting and financial management, collections, rule enforcement, homeowner communication, legal assistance, vendor management, and insurance services.

How do management fees work?

Typical HOA management fees consist of the following charges: Initiation fees, ongoing management fees, and exit fees.

What communication tools should an HOA use?

Choosing the right tools to aid your communication efforts, though, is just as important as the messages you send. The best HOA communication tools you can use include email, an HOA website, social media, video conferencing platforms, HOA software, and Nextdoor.

What is accrual basis example?

For example, if your association has unpaid invoices to a vendor which you have yet to pay for, under the accrual accounting principle, you would record it under ‘Accounts Payable.’ The same goes for any debts owed to the association but have yet to be settled. Knowing that you have receivables or payable will give you a better idea of your financial condition. Using the cash accounting method, though, you might spend money without knowing that you have payables to take care of.

What are the benefits of HOA software for vendor management?

Vendor management for HOAs becomes simpler and easier with the help of software. HOA software allows you to build a comprehensive database of vendors, streamline communications with vendors, keep track of invoices and payments for vendors, simplify work orders, and record and deliver feedback on vendor services.

What are HOA financial reporting mistakes to avoid?

To major financial consequences, board members should avoid underreporting the budget, overreporting expenses, failing to itemize the budget, and not filing tax returns.

What are ways to avoid HOA financial reporting mistakes?

In order to avoid HOA financial reporting mistakes, board members must pursue education to learn the basics of financial management, seek the expertise of professionals such as an HOA manager or accountant, and to utilize resources such as HOA software which can lessen mistakes due to human error.

Can an HOA file a suit against the developer?

An HOA lawsuit against a developer is probably not the most appealing choice, but it is sometimes necessary. Consider bringing an injunction pre-transition, though you may need to pay for this yourself. You can also file a suit post-transition on the grounds that the developer-controlled board failed to fulfill its duties.

What should homeowners do before an HOA turnover?

Typically, homeowners can express their concerns and oversee the turnover in the form of a transition committee. This transition committee should take the following actions: Review the financials of the HOA, perform an audit (not mandatory but recommended), inspect the reserves, stay on top of HOA insurance, and assess your need for an HOA management company.

How does Condo Manager software improve HOA communications?

Condo Manager is an all-in-one HOA software that features a comprehensive database, detailed communication logs, streamlined communications, convenient reminders and to-do items, and mobile compatibility. These HOA communication tools will help improve the communication process of your community for better and more efficient operations.

admin, Author at HOA Management Software

HOA Board Meetings: Types, Planning, And Purpose

admin on August 20, 2019

Homeowners association board meetings are where important decisions are made. There are different types of HOA meetings depending on the purpose or matter at hand. For efficient and productive HOA board meetings, here’s what you need to know.

What Are the Different Types of HOA Board Meetings?

Not all HOA board meetings are the same. There may be different players depending on the type and purpose of the meeting. Here are the most common types of meetings you will encounter in an HOA community.

1. Annual Meeting

The annual meeting is open to all members of the HOA community. It usually takes place at the beginning of each year. The purpose of this meeting is to inform homeowners of what has been going on in the community and what to expect for the year. HOA board members often give a recap of the previous year before presenting the annual budget, upcoming projects, and committee reports. The election of new board members also takes place during the annual meeting.

2. Board Meetings

HOA board meetings are held throughout the year. Depending on your governing documents, board members may be required to meet monthly or quarterly.

The purpose of board meetings is to discuss HOA-related matters such as new policies, maintenance projects, and committee reports. Unfinished business from the previous board meeting may also be discussed.

HOA board meetings also have an open forum where homeowners can voice out their concerns and suggestions. However, they should give advance notice as only topics in the HOA meeting agenda can be discussed.

3. Executive Sessions

Unlike other types of HOA meetings, executive sessions are strictly for board members only. The purpose of these closed-door sessions is to discuss sensitive or confidential matters such as contracts, delinquent assessments, personnel issues, and legal matters. Accordingly, the HOA board meeting minutes are not released to the public.

4. Committee Meetings

For larger HOAs, board members can delegate some of their duties and responsibilities to committees. As such, the purpose of committee meetings is to discuss matters related to their objectives and duties.

For instance, an architectural committee may use the meeting to review architectural applications and appeals. Committee meetings may include some or all board members. These HOA meetings are also open to the entire community.

5. Special Meetings

All HOA board meetings require advanced notice, except for special meetings. A special meeting may be called due to an emergency or if there is an issue that requires immediate action from the board. The president or the majority of the board may call for a special meeting. It can be held over the phone or through email as long as all members have agreed and put in writing.

How to Plan HOA Board Meetings

Do your HOA board meetings suffer from low attendance? Do your meetings normally drag for hours and hours? If so, it might be due to poor planning. If you want to be efficient and productive, here are some tips to keep in mind when planning your HOA board meetings:

1. Refer to Your Governing Documents

Board members should refer to the governing documents to establish HOA board meeting protocols. You will be able to determine the HOA meeting rules and requirements when it comes to agendas, minutes, and quorum. Apart from having effective and productive HOA board meetings, it’s important to conduct these sessions according to the protocol stated under the governing documents.

2. Create an Agenda and Stick to It

Board members already have limited time to attend to HOA matters; their time shouldn’t be wasted on overly long and unproductive meetings. If you want to stay inside or near the ideal 45-minute meeting length, you need to create an HOA board meeting agenda — and stick to it no matter what. You can also assign time limits for discussing certain topics to prevent board members from talking too long. If the time runs out, table the issue until the next meeting.

3. Send HOA Meeting Notices Early

Board members must provide adequate notice ahead of a scheduled meeting. However, in cases where a quorum is needed — such as the annual HOA meeting — consider sending an HOA meeting notice as early as possible. Homeowners are very busy so it’s better to inform them before their schedules become packed. This is a great way to increase attendance during HOA meetings.

4. Set Up a Community Suggestion Box

Homeowners’ input is very important but not everyone has the time to attend HOA meetings. To address the many concerns of homeowners but also maintain structure and brevity, consider putting up a community suggestion box.

This way, when homeowners see their concerns listed on the agenda, they will make it a point to attend the scheduled meeting. By implementing a schedule or limit to the open forum, the board can prevent meetings from dragging on for hours.

5. Always Remember to Take HOA Meeting Minutes

HOA meeting minutes are not only mandated but they are also very useful, especially for homeowners who are unable to attend the meetings. The board secretary — or an authorized representative — is responsible for taking minutes during every HOA meeting. In case there are misunderstandings, issues, or potential litigation, HOA meeting minutes can help clarify the situation or serve as legal records.

How to Keep HOA Board Meetings Efficient and Productive

As a board member, it’s important to know how to run a homeowners meeting. Apart from abiding by your governing documents, proper planning is the key to having efficient and productive HOA board meetings. Make sure to settle the agenda ahead of time so that you can give as much notice as possible. If there are a lot of discussion points, it can be helpful to have an HOA annual meeting checklist. HOA boards can also consult their management company or use HOA tools to make the entire process stress- and hassle-free.

If you need help with your next board meeting or other HOA-related concerns, feel free to reach out to the Condo Manager team. Call us at (800) 626-1267, email us at sales@condomanagerusa.com, or contact us online to learn more about our HOA software solutions.

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HOA Management Fee: Are They Charging You Right?

admin on July 23, 2019

Part of hiring an HOA property management company is paying a set fee in exchange for services to the association. But, how can you separate the reasonable fees from the questionable ones? The key is to understand how an HOA management fee works.

What Is an HOA Management Fee?

Homeowners associations don’t run on their own. They require a set of directors, the HOA board, to oversee and ensure the smooth operation of the community. These board members, though elected into their positions, don’t receive compensation for carrying out their duties. In essence, they are volunteers.

Because HOA board members usually have full-time jobs and personal lives outside of the association, they don’t always have the time or skill to perform day-to-day tasks. This is why many HOAs and condo associations turn to management companies for help.

But, hiring a management company does not come free. This is where HOA management fees come in. An HOA management fee is an amount charged to homeowners associations by HOA property management companies in return for services.

Who pays for the HOA management fee, though? Simply put, the association — and, by extension, the homeowners — pays for the management fee. The HOA board includes the management fee in the annual budget, which is then divided among all the homeowners in the community, board members included.

Does My HOA Need a Management Company?

Many HOA boards struggle with the fulfillment of their daily responsibilities either due to a lack of time or expertise. If that situation sounds familiar to you, then perhaps it is time to receive help from a professional HOA management company.

Usually, when you hire a management company, the company pairs your community with an HOA manager. This HOA manager will assist you with the day-to-day operations and act as a liaison between you and the management company.

Although the services offered can vary, most companies provide the following services:

1. Accounting and Financial Management

Not everyone is equipped to do accounting or handle the finances of an entire community. An HOA management company can take care of bookkeeping, advise you on financial matters, and assist with financial reports. Some companies perform the accounting tasks in-house, while others partner with third parties.

2. Collections

Managing the collection of HOA dues can come as a challenge, especially when you have a lot of delinquent accounts. A management company typically offers collection services in addition to financial management. Some companies don’t handle collections on their own and, instead, refer you to a collection agency they trust.

3. Rule Enforcement

HOA managers can conduct inspections for violations and coordinate with the board to enforce the rules. This can range from sending out violation notices to towing an improperly parked vehicle. Of course, HOA managers don’t take action without consulting the board first. The board still retains decision-making authority.

4. Homeowner Communication

Communication is paramount to maintaining transparency — a valuable facet of running a community. HOA managers can use a wide range of communication tools to disseminate information to homeowners. They can also handle complaints, send notices, and manage newsletters.

5. Legal Assistance

Though not all companies offer this service, some do. An HOA management company can help you navigate the often-confusing world of HOA laws and ensure you remain compliant. This can include federal laws such as the Fair Housing Act and Americans with Disabilities Act as well as state and local laws. If nothing else, a management company can refer you to an attorney with experience handling HOA communities.

6. Vendor Management

From creating and sending RFPs (request for proposal) to coordinating with existing vendors, an HOA manager can do it all. As with rule enforcement, though, HOA managers don’t get to pick the vendors for your community. The HOA board still has the final say on which vendor to choose, and an HOA manager can only offer advice.

7. Insurance

Every HOA needs sufficient protection in the form of insurance. An HOA management company can connect you with the best insurance providers and handle claims on your behalf. Keep in mind, though, that most management companies charge extra for insurance services.

How Much Do HOA Management Companies Charge?

It is important to understand that not all companies offer the same services and have the same fee structure.

Therefore, it is difficult to blindly determine how much you should expect to pay in HOA management company fees. What you can do, though, is rely on average costs.

Typical HOA management fees consist of the following charges:

Initiation Fees

This is the start-up fee or how much you should expect to pay for the company to assume the daily management of the HOA. To calculate this fee, the HOA management company considers the workload involved, such as file transitions, banking, bookkeeping, and software changes. Because this fee is reliant on workload, small communities usually pay smaller initiation fees (perhaps a couple of thousand dollars), while larger communities might pay $30,000 or more.

Ongoing Management Fees

The ongoing management fee is the regular fee an HOA pays, usually on a monthly basis. This fee is included in the contract and usually negotiated between the company and the HOA beforehand. On average, companies charge an HOA manager fee of $10 to $20 per unit per month in exchange for management services. Though, the amount can vary depending on the location and size of the community.

Exit Fees

If your HOA switches from one management company to another, expect to pay an exit fee. This is the fee charged by your current company to help with the transition process. The exit fee amount can vary wildly depending on the company. Make sure to go over the contract with your management company to see how much you should expect to pay for the transition. Perhaps you can negotiate to a lower price.

Caution: Suspicious HOA Management Fees

While you may want to believe that all HOA management fees are reasonable, the unfortunate truth is that some companies have hidden charges. To make matters worse, these hidden HOA management company costs are usually questionable in their purpose. Here are some examples of suspicious fees that some companies bill to HOAs:

1. Meeting Fees

It is common and rational to assume that your HOA manager should attend board meetings. After all, they need to know what is happening in the community to help run it. Some companies, though, will charge you extra for sending a representative to such meetings.

Thus, it is imperative that you ask your management company about their policy on meeting attendance. You might ask your HOA manager to come and be surprised about an additional fee at the end of the month. Some companies charge extra if you meet more than once a month, while others bill $50 to $100 per hour if your meetings take place after regular work hours.

2. Fees Per Instance

Some management companies charge a set fee every time they need to perform an activity. This activity, whatever it may be, can change depending on the company. Some charge you a fee per collection, while others charge you a fee for each demand letter they send.

To protect your HOA from this kind of questionable fee, you must stay vigilant and review your contract before signing it. This will save you a lot of time, headaches, and money. After all, you don’t want to increase HOA dues or levy special assessments just to make up for an oversight you committed.

3. Miscellaneous Fees

Other fees management companies can charge include newsletter printing costs, general contractor fees, inspection fees, document preparation fees, and the like. Some companies get really creative with their hidden fees and find new ways to charge you extra for something you thought was already included in the fixed HOA management fee.

Again, the best way to avoid surprises is to do your due diligence and review your management contract thoroughly. In addition, you can ask the HOA management company directly if they charge any other fees outside of the initiation fees, ongoing management fees, and exit fees.

Making a Decision

When assessing whether or not an HOA management fee is worth it, weigh the price against the services the company provides. Sometimes, the extent and quality of a company’s services justify the more expensive prices they charge. Just remember to work within your budget and make sure you get the services you need. And don’t forget to check for extra or hidden fees!

Management software can significantly reduce the amount of time and work needed to run an HOA or condo association. Both management companies and self-managed communities can benefit from Condo Manager USA. Schedule a free demo, call us at (800) 626-1267, or contact us online for more information.

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HOA Communication Tools And Policies For Better Communication

admin on July 17, 2019

Prompt and reliable dissemination of information is a key element of successful HOA management. To accomplish this, you will need various HOA communication tools.

HOA Communication Tools and How to Use Them

One of the duties and responsibilities of your HOA board is to communicate with association members. From making announcements to sending out notices, communication is a regular part of running a community.

Choosing the right tools to aid your communication efforts, though, is just as important as the messages you send. Here are the best HOA communication tools you can use along with how you should use them:

1. Email

Email is a valuable method of communication for HOA communities. With email, you can share news and updates instantly and without hassle. It is an affordable and convenient way to disseminate information. The best part is that email is very versatile. You can use it for more formal communication as well as for more casual announcements.

Some HOAs are apprehensive about using email because they believe older members will be against it. But, the opposite may actually be true. Older generations are now using email almost as much as younger generations.

Most homeowners already have an existing email address that they regularly use. If you have yet to start using email as a communication tool, you may find it difficult to collect individual email addresses. In doing so, always remind homeowners that their email addresses will only be used for HOA communications purposes.

Managing multiple email addresses, though, can come as a challenge as your association grows in size. In that case, your board would have an easier time with the help of an HOA email system. There are a number of email systems you can use, and some management software even has such systems already integrated.

HOA Email Policy

When using email as a means of communication, board members should establish a set of rules to avoid problems. For instance, if a homeowner replies to an email or makes a complaint via email, it is best to address the issue in person. Written communication often leaves a lot of room for misinterpretation. Additionally, board members should never disclose homeowners’ personal information to other parties. That includes their email address.

2. HOA Website

Websites offer several advantages to an HOA community. First of all, HOA websites function as a one-stop-shop for all things HOA-related. You can make important announcements, send reminders, post newsletters, and add a calendar for events. You can even publish HOA records, such as your governing documents, to your website.

A fully-integrated website also allows members to submit service requests. All of this will make it easier for homeowners to gain access to various information and actions.

When creating your website, it is essential to incorporate a password-protected homeowner portal. This way, you can make sure that the only people who have access to HOA documents and services are members of the community.

The only downside to HOA sites, though, is that well-designed ones tend to cost more. Still, shelling out $5,000 to $10,000 for a comprehensive website will pay off in the end.

3. Social Media

Social media is another viable option, though not everyone is active on social media or even has an account.

Facebook is one of the most popular platforms for HOA communities since it allows you to create closed groups. In addition to making announcements, Facebook also allows you to share files, photos, and documents. Perhaps the biggest benefit of social media, though, is that you can share information in real-time.

HOA Social Media Policy

Things can quickly get out of hand on social media, which is why it is essential to crafting a policy regulating homeowner behavior. Common social media rules include prohibiting offensive or derogatory comments, banning owners from starting fights, and restricting what users can share. Still, even with rules in place, managing social media can be tricky.

Facebook, though, has some tools that can help you control posts. For instance, you can disable member posts without approval from the group admins, i.e. the HOA board members. Apart from controlling homeowners, board members should also exercise care. Refrain from posting any sensitive or confidential information on social media.

4. Video Conferencing Tools

Video conferencing platforms are a suitable alternative if, for any reason, your board can’t meet personally. With this tool, you can conduct meetings remotely, share screens, and send files.

There are also other features you can use depending on the platform you choose. You can also conference with fellow members on mobile or on your computer. Best of all, a lot of video conferencing programs come free of charge. Video conferencing can also work for annual HOA meetings if the number of participants allows it.

Video Conferencing Policy

Since virtual meetings allow you to participate from anywhere, you may feel tempted to forgo a decent appearance in favor of comfort. While comfort matters, keep in mind that you must still remain completely professional at all times. That means putting on a clean shirt even when you’re at home. Though, most video conferencing tools also let you turn off your camera so that only your voice is heard.

5. HOA Software

The beauty of an HOA management software is that you have more control over the messages you send and who you send them to. You can customize a lot of settings and preferences, and there are even templates you can use for easy message creation.

With the help of self-managed HOA software, you can share news and updates in a number of different mediums. This includes SMS, voice messages, and email. You can even attach files and other documents to the messages you send. Plus, a fully integrated HOA management software comes with all the bells and whistles, including record management, billing and invoicing, and service requests management.

6. Nextdoor

If you have never heard of Nextdoor, it is a social networking app that connects communities. With the help of this app, you can share local news, welcome newcomers, and offer recommendations for services. The only thing you need to do in order to start is to enter your location.

HOA boards generally have no control over Nextdoor, though, so it is not one of the most practical HOA communication tools. Therefore, you should never use it to conduct official HOA business, or else you may find yourself in legal trouble.

Are Printed Newsletters Worth Keeping?

A printed homeowners association newsletter used to be the standard communication tool.

But, with the changing times brought on by technology, printed newsletters are on their way out. Still, many HOAs continue to rely on newsletters because their homeowners prefer it.

If your HOA is considering phasing out printed newsletters, it is important to first see how your members feel about it. Try conducting a survey to obtain feedback. It is also worth striking a balance between the convenience of technology and the tradition of printed newsletters.

When explaining the change to your members, make sure to highlight the benefits of going digital. In addition to cutting back on printing and mailing costs, switching to a digital medium is faster and more accessible. Furthermore, with the amount of time involved in creating a newsletter — from design, layout, and writing content — the information already becomes outdated by the time it reaches homeowners’ doors.

A Duty to Fulfill

Your HOA board is responsible for keeping members informed and up-to-date, whether it’s about new rule changes or community events. Reaching out to members can be hard, though, especially if you still rely on traditional methods. Accomplish your duty to distribute information in a timely and accurate manner with the help of these HOA communication tools.

Condo Manager USA offers a thorough HOA management software that meets all your communication needs. Schedule a free demo, call us at (800) 626-1267, or contact us online for more information.

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HOA Accrual Accounting: Why It’s The Best For HOAs

admin on May 16, 2019

Homeowners association accounting is a critical part of managing any HOA community. The key to successful accounting, though, starts at the beginning — choosing your accounting method. Among the three possible options, HOA accrual accounting remains unsurpassed.

What Is HOA Accrual Accounting?

The accrual basis of accounting dictates that you should record revenues and expenses as these transactions occur. It does not take into account when you actually receive payment or disburse cash.

When using accrual accounting for HOAs, you record all of the association’s financial activities on the HOA financial statements. Because of the timing of reporting revenues and expenses, account titles such as “Assessments Receivable” and “Accounts Payable” appear on the Balance Sheet. This gives you a better understanding of your association’s current financial standing.

HOA accrual accounting is inherently more complicated. Therefore, many find it more difficult to comprehend and execute. Regardless, it remains one of the HOA accounting best practices. It is widely used among homeowners and condo associations since it provides you with a more accurate view of your finances. Additionally, this HOA accounting method is the only one that conforms with the Generally Accepted Accounting Principles (GAAP).

HOA Accrual Accounting vs Cash and Modified Accrual Accounting

There are three accounting methods available to homeowners and condo associations: Accrual accounting, cash accounting, and modified accrual accounting. Typically, though, associations choose from one of the first two identified.

But, how does HOA accrual accounting differ from the other two methods anyway?

Cash accounting dictates that you should record all revenues and expenses as money moves. It primarily relies on the timing of the cash exchange. In this case, you would only record a revenue or expense account when you have either received (revenue) or paid (expense) money for it. Because of the timing of the cash method, account titles such as “Assessments Receivable” or “Accounts Payable” do not appear on homeowners association financial statements such as the Balance Sheet.

The final method, modified accrual accounting, is simply a combination of the other two methods. Using a modified basis, revenues are recorded when they are earned as opposed to when money is received. It follows the accrual principle. Expenses, on the other hand, are recorded when you disburse money regardless of when you incurred it. It follows the cash principle.

The Best Accounting Method for HOA

Given that there are three accounting methods that associations can choose from, you may wonder why most people favor the accrual basis of accounting.

Simply put, accrual accounting remains the best HOA accounting method because it paints a more accurate picture of your association’s finances.

For example, if your association has unpaid invoices to a vendor that you have yet to pay for, under the accrual accounting principle, you would record it under “Accounts Payable.” The same goes for any debts owed to the association but has yet to be settled.

Knowing that you have receivables or payable will give you a better idea of your financial condition. Using the cash accounting method, though, you might spend money without knowing that you have payables to take care of.

While modified accrual accounting does give you a clearer view of your revenues, it does not do the same for your expenses. HOA accrual accounting is simply superior because it helps you financially plan and budget for the future as well as allows you to make informed decisions.

Understanding the Pitfalls of Cash Accounting for HOAs

When your association uses cash accounting, it fails to report any receivables or payables. That means you have no way of knowing about any money coming in or any expenses you expect to pay — at least, not with a simple look at your financial records. This opens you up to the possibility of operating under a misapprehension regarding your finances.

Because receivables and payables do not appear on financial statements, you might think that your association has more cash than it actually does. Your cash account might reflect solvency, but you would not know for sure because you do not record payables. With the cash accounting method, you will find it hard to keep track of the money you owe and money owed to you. Thus, when unexpected expenses arise, you might end up spending money you actually do not have.

You can prepare reports to track your payables and receivables if you wish. But, you have no way of determining their accuracy because you cannot cross-reference them with your Balance Sheet or General Ledger.

Granted, the cash accounting method is the easiest to understand and execute, which is why some associations prefer it. But, it is best reserved for cash-based businesses and handling your personal finances. For an organization like an HOA, use accrual accounting.

The Role of the Law and Your Governing Documents

It is equally important to check state laws to see which accounting method you should ultimately use. Some states are more specific when it comes to HOA accounting, while others have no such laws. California, for instance, requires the use of the accrual basis of accounting when preparing a pro forma operating budget.

Your governing documents may also have a say in the decision. Some associations have it in their CC&Rs or bylaws that a certain method of accounting should be used when recording and preparing financial statements. Though, since HOA accrual accounting is the best, consider amending your governing documents if it asks you to use a different method. Check with your HOA attorney to see how you can amend your governing documents.

A Helping Hand

Accounting is a difficult subject that requires some background knowledge in order to execute properly. Understanding the idea behind HOA accrual accounting is just the tip of the iceberg. This is why many associations choose to seek the help of an accountant or invest in HOA accounting software.

Condo Manager USA provides software solutions for self-managed associations and HOA management companies. Our HOA and condo management software comes with a comprehensive accounting system that uses the accrual method of accounting. Schedule a free demo, call us at (800) 626-1267, or contact us online for more information.

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What You Need to Know About Form 1120-H

admin on April 18, 2019

Are HOAs required to file tax returns? Even though they are non-profit organizations, all HOAs must still file their income tax return each year. To better understand the requirement, here’s everything you need to know about the homeowners association tax form, also known as Form 1120-H for HOAs.

What Is Form 1120-H for HOAs?

Initially, HOAs had to file Form 1120, which is the corporate income tax return. Form 1120 is more complicated and does not exempt the payment of tax on dues and assessments. However, after the Tax Reform Act of 1976 was passed, HOAs were no longer required to file Form 1120. Instead, they would file for Form 1120-H.

Form 1120-H is the income tax return for homeowners associations. Compared to Form 1120, this form allows for a more simplified HOA tax filing process. It also allows HOAs to enjoy certain tax benefits that are outlined in Section 528 of the Internal Revenue Code. One of the main benefits is that HOAs can exclude membership dues, fees, and assessments (also known as exempt function income) from their gross income.

For the Internal Revenue Service (IRS), a homeowners association can be a:

condominium association
homeowners association
timeshare association

There are five requirements to qualify as an HOA:

At least 60% of gross income should be exempt function income
At least 90% of annual expenses should be for the association’s business
No private shareholder or individual should benefit from the association’s earnings
At least 85% of housing units should be residential
The association must file Form 1120-H to enjoy Section 528 benefits

If your HOA does not meet the above conditions or fails to file Form 1120-H, it will be required to file Form 1120 and thus, will be subjected to the regular corporate tax rates.

Important Terms for the HOA Tax Form 1120-H

Filling up Form 1120-H for the first time can be quite confusing. If you’re looking for Form 1120-H instructions, here’s a brief explanation of the different terms you’ll encounter.

Exempt Function Income: This refers to dues, fees, or assessments paid by members of the HOA. The exempt function income is deducted from the gross income when calculating taxable income.
Non-Exempt Function Income: This refers to income earned from non-members of the HOA, payments from association members for the specific use of facilities that are not open to all members, income from work performed outside the HOA’s property, and interest on reserve account earnings.
Expenses: Form 1120-H examples for expenses would be repairs, maintenance fees, legal fees, management fees, insurance premiums, and property taxes.
Dividends and Interest: HOAs that put their reserves in a money market account will generate taxable interest income while reserves invested in money-making stocks will generate taxable dividend income.
Deductions: This refers to expenses incurred when generating non-exempt function income. Examples include production costs, advertising fees, and rent from subleasing HOA property. Associations are also entitled to a standard $100 deduction.
Tax Rate: The IRS has a 30% flat tax rate for HOAs and COAs. For timeshare associations, the tax rate is 32%.

Frequently Asked Questions About Tax Form 1120-H for HOAs

For a more comprehensive understanding of the IRS Form 1120-H, here are the answers to the most common questions:

Who Must File Form 1120 H?

All HOAs must file their tax returns. Form 1120-H is typically handled by the HOA board treasurer. However, preparing and filing the tax return for HOAs can be complicated if your treasurer does not have adequate experience. It’s recommended to consult your HOA’s CPA, attorney, or management company to ensure that Form 1120-H is properly filled up.

Does an HOA Need a Tax ID?

Since HOAs are required to pay taxes, they are assigned a federal tax ID number. On the Form 1120-H for HOAs, the tax ID is written in the Employer Identification Number box

Can Form 1120 H Be Filed Electronically?

You cannot create an e-file for Form 1120-H for HOAs. Electronic filing is currently not supported by the Modernized e-File (MeF) program of the IRS. Form 1120-H must be filed on paper.

When Are HOA Tax Returns Due?

Form 1120-H must be submitted on the 15th day of the 4th month following the end of the association’s fiscal year. However, if your fiscal year ends on June 30, Form 1120-H must be submitted by the 15th day of the 3rd month following the end of the fiscal year (September).

If the Form 1120-H due date falls on a weekend or holiday, the tax return for HOAs should be submitted on the next business day.

What Happens If HOA Does Not File Taxes?

If your HOA fails to submit Form 1120-H, it will be forced to file for Form 1120 — which does not have the same deductions.

If your HOA does not file its tax returns, the IRS will impose several penalties. The failure to file penalty is 5% every month, with a maximum penalty of 25%.

Meanwhile, the failure to pay penalty is 0.05% of the unpaid tax liability per month. It won’t exceed 25% Your unpaid balance will accrue interest from the due date up until you can pay the balance in full.

Importance of Filing Form 1120-H for Homeowners Associations

Filling up Form 1120-H requires a lot of planning and preparation. Gathering receipts, invoices, and other relevant documents takes time, especially if you are keeping a manual filing system. You also need to pay attention to every detail to avoid inaccuracies, as these will attract hefty fines from the IRS. Overseeing your HOA’s Form 1120-H is a major responsibility. If you need assistance, do not hesitate to reach out to professionals with established tax experience.

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7 Reasons Why You Should Use A Property Management Accounting Software

admin on April 11, 2019

Investing in a rental property is a great way to earn passive income. But what you’ve likely learned by now is that managing a property is not passive at all. The financial responsibilities alone can take up most of your time. If you’re looking for a cost-effective solution, consider investing in property management accounting software.

What Is Property Management Accounting Software?

Property management software is a computer program designed to assist landlords or property managers with their day-to-day activities. There are plenty of options in the market today, so the best property management software is one that meets your specific needs.

For instance, if financials are your weak spot, you can choose accounting software for property managers. However, if you need a full suite of management services, there are also more comprehensive programs available. Some essential software features include financial reporting, invoicing, online payment processing, maintenance management, and violation tracking.

If cost is a major consideration, there are also custom property management software options. You won’t have to spend on features and functionalities that you don’t need. Landlords and property managers can easily select the features they need help with.

Why Should You Use a Property Management Accounting Software?

Property management software can help you become a more efficient and productive landlord. If you need further convincing, here are seven reasons why it’s a worthwhile investment.

1. Save Money in the Long Run

Property management accounting software is no longer as expensive as before. Advancements in technology have made these programs accessible at lower price points. Even though there is still an upfront payment, you will save money in the long run.

For instance, accounting software can help you with day-to-day tasks that used to take hours to accomplish. You will just need to input the numbers and the computer program will organize all the transactions. Since accounting tasks are more manageable, you won’t have to hire a bookkeeper for simple data entry tasks.

2. Reduce Accounting Errors

Property management software automates accounting and bookkeeping tasks, which means you can avoid accounting errors. Even unintentional mistakes can have costly consequences on your finances. With accounting software, landlords and property managers can be more confident with their financial records. Time saved on other financial tasks can also be spent reviewing your numbers and spotting inconsistencies.

3. Advanced Financial Reporting Capabilities

Property management accounting software comes with advanced reporting capabilities. Thus, landlords can generate monthly or quarterly financial reports for their rental properties.

These reports are also easy to understand even if you don’t have a financial background. You won’t have to wait for your annual or biannual appointment with your CPA to make sense of your financials. Landlords can use these reports to keep track of their finances and make better decisions for their rental properties.

4. Accessible from Anywhere, Anytime

Choose a property management accounting software with cloud-based storage so that you can access your financials from anywhere and at any time. Mobile compatibility also enables you to see your financials from a desktop computer, tablet, and smartphone.

Many landlords are hesitant to switch to online property management software because the data might get corrupted or lost. With cloud storage, though, you can have peace of mind knowing that your financial records are safe and secure. Data backup and recovery have been simplified as well so you don’t need to call a technician to access your date from another device.

5. Increased Software Security

Property management accounting software comes with security features so you won’t have to worry about confidential or sensitive data being stolen or leaked.

Make sure that your chosen accounting software offers multiple layers of security such as encryption and authentication safeguards, as well as regular software updates.

6. Easy to Scale

Scalability is another top reason for using property management accounting software. The computer program can easily adapt if the landlord needs more storage or provides access to their property manager or accountant.

Even as you expand your portfolio, you can still use the software to manage the financials of your different rental properties. As your property management team grows, the software can also help increase efficiency and reduce redundancies.

7. More Than Just Accounting

Just like landlords or property managers who have a wide range of responsibilities, property management software can be used for more than just rental property accounting. These computer programs have other desirable features that can make your day-to-day tasks more manageable. For instance, with invoicing and payment processing capabilities, you won’t have to physically collect rent from your tenants. You can send invoices electronically while tenants can settle their accounts online as well.

The Best Property Management Accounting Software for Your Needs

Those who are not ready to invest can choose free property management software — though the functionalities may be limited compared to paid versions. However, if you think you’ve found the best property management accounting software for your needs, most options will offer a free trial. By now, though, you have a better understanding of property management accounting software and how they can make your job as a landlord more convenient. With the software, you can really enjoy your passive income and spend more time with family and friends.

Looking for property management software for landlords? Feel free to contact the Condo Manager team today! Call us at (800) 626-1267, email us at sales@condomanagerusa.com, or contact us online to learn more about our property management solutions.

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HOA Vendor Management: Keep Track Of Your Vendors With Ease

admin on March 29, 2019

Great, reliable service from vendors can be hard to find so when you do, it’s important to nurture the business relationship. However, with so many things going in, board members can easily lose track of homeowners association payments, vendor contracts, and other important documentation. If you want your vendors to deliver a high level of service, homeowners association vendor management is a must.

What Is HOA Vendor Management?

HOA vendor management is the process of developing, managing, and controlling vendor activities and performance. The overall goal is to establish a strong relationship that will drive a vendor to deliver excellent service throughout the contract period. Through vendor management, HOAs can reduce the risks and get the most value out of the business relationship.

Vendor management seems like a simple process but when the association is dealing with more than a handful of vendors, it can become complicated. Each vendor will have its own contract, work orders, pricing, payment schedules, communication line. Without an organized document management system, an HOA is more likely to miss payments, lose contracts, and have misunderstandings — all of which can deteriorate the HOA-vendor relationship.

If you are having a hard time keeping track of vendors, it might be time to consider a digital solution. Investing in HOA software can help you manage vendors effectively and efficiently so that there are no service failures and service disruptions in your community.

Benefits of Using HOA Software for Vendor Management

Vendor management for HOAs becomes simpler and easier with the help of software. Here are some of the benefits you can expect.

1. A Comprehensive Database of Vendors

Searching for a new vendor is quite tedious. You need to find potential companies online, perform enough research to narrow down the choices, request for bid proposals, and then negotiate the terms of the contract. After all that, you’ll end up choosing only one.

Rather than have valuable vendor information get lost in your file cabinets or end up in the trash, HOA software enables you to store all the information electronically. They won’t take up space and clutter your office space. And when the time comes when you need a new vendor, you can quickly search your database for their contact information.

You can even view vendors based on their quoted prices to narrow your choices. No need to go through the grueling search process all over again. Just call up the vendor and request an updated proposal. Thus, HOA software can save you a lot of time and effort.

HOA software can also store vendor contracts. You can easily research and refer to a contract when talking to a vendor and potentially renewing the business relationship. If there are issues with their services, you can also quickly bring up the terms of the vendor contract.

2. Streamlined Communications

Vendor management can become confusing if both parties are dealing with different people every time. Communication lines get crossed, resulting in miscommunications or even disagreements.

It’s also a waste of time to be constantly repeating or relaying information. HOA software can help prevent communication breakdowns.

By limiting communication to a single channel, HOAs can easily keep track of messages exchanged with a specific vendor. If you need clarification, you can first read through previous responses before inquiring with the vendor. If there are relevant updates with the community, the association can also use the HOA software to send messages to its entire list of vendors.

3. Keep Track of Invoices and Payments

HOA software can help you keep track of invoices and payments. The program allows you to process invoices, issue payments, and print out checks. You can even print out one check for multiple invoices to be more efficient. Not only that, but the HOA can also save on paper, ink, and other office supplies.

When it comes to payments, HOA software can help you monitor payment schedules so that each vendor is paid on time — despite having different payment schedules. You can also set up recurring payments for your vendors so that you don’t have to process them each time.

4. Simplified Work Orders

HOA software simplifies work orders for easier vendor management. The program keeps all previous work orders so you can simply duplicate and adjust them when generating future work orders. It’s also easy to refer to previous work orders when there are issues or clarifications from either party. Since HOAs may be dealing with work orders from different vendors at any given time, the software will make everything organized and manageable.

5. Record and Deliver Feedback on Services

HOA software can also keep a record of your comments and feedback regarding a specific vendor. You can also take note of the goals and objectives for your relationship with vendors.

If you want to convey points for improvement to your vendors, you can send them via software’s HOA communication tools. Thus, there is a record of all correspondences should there be any dispute or disagreement. Conversely, you can also send positive feedback to your vendors for HOA vendor relationship management.

HOA Vendor Management Tips for Better Relationships

Apart from utilizing software, there are also many other ways to strengthen your relationship with vendors. Here are some helpful HOA vendor management tips to keep in mind.

Communicate to Vendors Clearly and Openly: Right from the start, make sure that communication lines are always open between the HOA and your vendors. Make sure to clearly state your goals and objectives so that vendors can adjust their services accordingly. If there are changes that affect the services they provide, make sure that your vendors are informed as soon as possible.
Maintain Reasonable Expectations: All HOAs will want excellent service from their vendors. However, it’s unfair to hold your vendors to unrealistic demands. Your expectations should be reasonable based on the vendor’s capabilities and pricing. Do not ask for things that are already outside the scope of services outlined in the contract.
Address Issues Promptly: If there are things you do not like regarding your vendor or their services, address them as soon as possible. If not, the vendor will not have the chance to correct these issues. It will be hard to build a good relationship with your vendor if there are lingering or unresolved issues.

HOA Vendor Management for Long-Lasting Business Relationships

Vendors deliver essential services that allow an HOA to run smoothly and efficiently. If you want to develop long-lasting business relationships, consider investing in HOA vendor management software. It’ll be easier to juggle the many schedules, financial obligations, and work orders of your vendors. As vendors see your effort in maintaining the relationship, they will also be encouraged to deliver better service. They may even offer better deals when it’s time to renew the contract.

If you’re on the lookout for HOA vendor management software, feel free to reach out to the Condo Manager team today! Call us at (800) 626-1267, email us at sales@condomanagerusa.com, or contact us online to learn more about our HOA software solutions.

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4 HOA Financial Reporting Mistakes To Look Out For

admin on March 1, 2019

Do you have problems with homeowners association financial reporting? Even with a financially literate board, mistakes can still happen. What’s important is that you’re able to identify these HOA financial reporting mistakes early on and make changes so that they never happen again. If you want to protect the financial position of your HOA, here’s what you should look out for.

HOA Financial Reporting Mistakes You Must Avoid

Accurate financial reporting is essential to the successful operations of an HOA. Financial statements reflect the financial health of your community. These documents let homeowners know that the HOA board is putting their money to good use. With accurate financial reports, you can also attract potential homebuyers to join your community.

But what happens when there are problems with homeowners association financial reporting? The board loses the confidence of the homeowners and the community fails to attract new members. Not only that, but financial reporting issues can also lead to higher insurance premiums and difficulty getting loans — should the need for one arise.

If you don’t want to experience these pitfalls, here are four HOA financial reporting mistakes to avoid.

1. Underreporting Budget

The HOA budget should be realistic and cover all the anticipated expenses for the coming year. The board should also cushion the budget for inflation, overspending, bad debts, vendor rate adjustments, and emergency expenses. If the anticipated income is not enough to cover all these expenditures, HOA fees must be increased. However, since these fee increases do not go over well with homeowners, some board members might decide to underreport their annual budget.

Underreporting the budget is a major financial reporting mistake that HOAs should avoid. As a board member, it is your fiduciary duty to act in the best interests of the association. That means ensuring that financial reports, including budgets, are accurate. Remember, is not your responsibility to appease homeowners with low assessment fees.

2. Overreporting Expenses

Overreporting expenses is one of the HOA financial reporting problems to look out for. Mistakes in your HOA financial statements might simply be due to human error but it can also be a sign of fraud or embezzlement.

Board members must carefully inspect their financial statements. For instance, is the HOA suddenly issuing payments to vendors that don’t exist or paying for excessive repairs and amenity upgrades? You can also check if checks are being issued to individuals.

Many HOAs only discover cases of fraud or embezzlement when it’s already too late. Thus, to protect HOA funds, board members must know how to read HOA financial statements so that they can identify discrepancies or mistakes — no matter how minute they may be.

3. Failure to Itemize

The HOA budget must be as detailed as possible to have an accurate picture of the upcoming year’s financial obligations. Accordingly, creating an annual budget requires a lot of time and effort. If your board is untrained or lacks attention to detail, you might end up with a budget that is not properly itemized.

For instance, instead of listing down roof maintenance, plumbing, electrical, and landscaping as separate expenses, the budget just has a maintenance category. This financial reporting mistake can result in overspending.

Without establishing specific budgets, the HOA may spend more for roof maintenance and leave less for the other maintenance projects. Thus, there is a chance that essential maintenance tasks cannot be accomplished. The board may also end up depleting funds, which can put HOA financials in a precarious situation.

4. Not Filing Tax Returns

Apart from the homeowners, HOAs must also report to the Internal Revenue Service (IRS). Some HOAs fail to file their Form 1120-H on time while others may not even know that they have to file taxes. Failure to file tax returns is a financial reporting mistake you should avoid. Otherwise, you might end up in trouble with the IRS.

Failure to file and pay taxes comes with penalties with interest. The IRS may also strip your HOA of its tax-exempt status. To avoid these costly consequences, make sure to file your HOA tax returns on the due date.

3 Solutions to Avoid HOA Financial Reporting Mistakes

Regardless if they were intentional or not, HOA financial reporting mistakes can have major consequences. Here are three solutions that can protect your association from the abovementioned financial missteps.

1. Pursue Board Member Education

Financial literacy is not a requirement for board members. However, once elected to the board, you must show initiative by pursuing HOA board member education. Newly elected members will have the opportunity to learn the basics of financial management. They do not need to be financial experts but at the very least, they should know how to read and interpret financial reports.

2. Seek the Expertise of Professionals

If financial management is not the forte of the board, considering consulting or hiring professionals.

HOA management companies and accountants have experience with financial management tasks so they can provide the guidance that your board needs. These professionals can also serve as checks and balances to prevent fraudulent activities within the HOA.

3. Utilize HOA Resources

Board members should not use the lack of financial background as an excuse for financial reporting mistakes. In this day and age, there are so many resources you can use to manage HOA finances.

For instance, HOA software can automate day-to-day financial tasks so that there are fewer accounting mistakes and errors. These programs can also analyze your data and produce financial reports. As long as the numbers are inputted correctly, HOAs can be confident that the generated financial reports are accurate and detailed.

Overcoming HOA Financial Reporting Mistakes for a Better Future

By now, board members have a better understanding of HOA financial reporting mistakes and solutions that can help them avoid these pitfalls. Through proper financial management, you can ensure that your community operates smoothly and that homeowners can see the results of investing their hard-earned money.

Looking for software that can help you avoid HOA financial reporting pitfalls? Feel free to contact the Condo Manager team today! Call us at (800) 626-1267, email us at sales@condomanagerusa.com, or contact us online to request a demo or to learn more about our HOA software solutions.

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HOA Turnover: Tips For Ensuring A Smooth Transition

admin on January 29, 2019

The control of every development must eventually transfer from the developer to the members of the homeowners association. But, the HOA turnover process is not always easy and trouble-free.

What Is an HOA Turnover? And Why Is It Necessary?

An HOA turnover, also known as a community turnover, is exactly as it sounds. It is the process of turning over control of the homeowners association from the developer to the homeowners.

The HOA transition from developer to owner is important because it marks a change in the structure of the community. Once control transfers, owners will then be responsible for maintaining the community instead of the developer. Owners must then elect a set of HOA board members, who must then ensure the continuous operation of the community.

Both the developer and homeowners will, of course, want a fast and easy transition. But, you may run into minor hitches here and there when your interests as a homeowner do not line up with the developer’s interests. After all, developers are mainly interested in making a profit. They want to establish a community, sell houses, and then start on their next project.

Even though both parties want the quickest route to the end result, it is imperative to ensure that the HOA turnover process goes as smoothly as possible. That means going over everything — financials, plans, insurance policies, and the like.

Understanding the Developer Turnover Process

There are three stages to the process of developer turnover to HOA: Pre-transition or pre-turnover, the HOA turnover meeting, and post-transition or post-turnover. Learn more about each stage below.

1. Pre-Transition

When an HOA is still under the control of the developer, the HOA board usually consists of developer representatives. It might appoint a couple of homeowners to serve on the board as well, though this does not happen all the time. Typically, homeowners can express their concerns and oversee the turnover in the form of a transition committee. This transition committee should take the following actions:

Review the Financials

The only way to know that the association is in good financial standing is to review its financial records. This includes financial statements, bank statements, tax returns, budgets, and vendor contracts.

You want to make sure that everything checks out and that there are no suspicious transactions. If you spot anything questionable, ask the developer to clarify.

Perform an Audit

For a more comprehensive study of the HOA’s financials, it is a good idea to hire a Certified Public Accountant (CPA) to perform an audit or something similar. This will cost money, though it is necessary if the association’s financial condition is not up to par.

Inspect the Reserves

The HOA reserve fund consists of cash savings, contributed by homeowners, for the purpose of major replacements and repairs as well as emergencies. Make sure the developer has created a reserve fund account in the association’s name and that it meets the right reserve level. You may need to perform a reserve study to do this.

Stay on Top of Your Insurance

Insurance is paramount to any working organization, homeowners, and condo associations included. Make sure to secure the association’s insurance policies and that you have sufficient coverage. Consult with an insurance expert to determine what your HOA lacks.

Assess Your Need for HOA Management

HOA board members may not always have the time, skills, or resources to carry out their day-to-day tasks. An HOA management company can step in to shoulder some of the burdens. Evaluate your needs to see if you need an HOA manager. If you do, it is best to go with a credible and professional company.

2. HOA Turnover Meeting

The official transition of the HOA from the developer to the homeowners takes place during the turnover meeting. During this time, the developer will deliver all pertinent documents to the homeowners (see HOA transition checklist below) and the homeowners will elect its new board.

The laws surrounding turnovers can vary from state to state. Some state laws mandate that a turnover meeting must transpire within a certain timeframe. In Florida, for instance, developers must hand over control of the HOA to the owners 90 days after 90 percent of all units have been transferred to their buyers. This is the most common trigger for an HOA turnover.

Other triggers can include bankruptcy, the appointment of a state court receiver, developer receivership, or if 7 years have passed since a condo’s declaration was recorded. To know what can trigger an HOA turnover in your state, check your state laws.

3. Post-Turnover

After the official turnover takes place, the developer or its representative should still be present at HOA board meetings for the next 90 days. This will allow for a smoother and more efficient transition.

Following that, the elected HOA board members can then continue to run the community according to the governing documents.

HOA Turnover Checklist

During the HOA turnover meeting, the developer must hand over the following items to the association:

A copy of the recorded governing documents as well as any amendments and supplements
A copy of the articles of incorporation
Association records such as meeting minutes
All generated rules and regulations
Director resignation letters as a result of the end of the developer’s control
All association financial reports and statements:
- Balance Sheets
- Income Statements
- Balance of association funds
- Control over association funds, including bank accounts and signature cards
- All personal property of the association as well as inventory

If known or available, the developer must also deliver the following items to the association at the HOA transition meeting:

List of owners, addresses, and telephone numbers
As-built architectural, structural, engineering, mechanical, electrical, and plumbing plans
Original specifications specifying all material changes
Underground site services plans
Site grading plans
Drainage plans
Landscaping plans
Insurance policies
Issued occupancy permits
List of contractors included in the development and construction of common elements
Lease agreements to which the association is a party
Contracts (service, employment, etc.) to which the association is a party
Any other information related to association property maintenance and repairs

Taking Action in a Developer Controlled HOA

During the pre-transition phase, the developer still holds control over the HOA. Good developers listen to their homeowners and take care of the community. But, if you happen to have a bad developer, problems can arise.

Although a developer-populated HOA board has the same duties and responsibilities to fulfill as any other HOA board, some developers fail to uphold them. The bad news is that, in most states, developers have power in the pre-transition phase. That does not mean you have no options, though. Here are some things you can do to force developers to change their ways:

Assemble an Advisory Committee. Consider forming an advisory committee consisting of homeowners. This committee can collect feedback from all homeowners and pass it on to the developers. Of course, an advisory committee can only offer recommendations and has no real decision-making power.
Take It Up With Management. If your association is already being managed by an HOA management company, try reasoning with them instead. The management company wants the best for the community (and they likely want you to retain their services once the HOA transitions). Therefore, they might be able to get the developer to listen.
Use the Law to Force a Turnover. If your HOA already meets the requirements for a turnover according to state laws, you can force the developer to start the transition process. Some developers may feel reluctant to do so, but you can hire legal counsel to help you with this.
Take Legal Action. An HOA lawsuit against the developer is probably not the most appealing choice, but it is sometimes necessary. Consider bringing an injunction pre-transition, though you may need to pay for this yourself. You can also file a suit post-transition on the grounds that the developer-controlled board failed to fulfill its duties.

Homeowner Participation Is a Must

An HOA turnover is a critical step that every homeowners or condo association must take. To ensure a smooth transition or, at least, come close to it, homeowners need to take an active role. That means paying attention to HOA business, including its financials and insurance, right from the get-go.

When homeowners receive control of the HOA, many find it hard to manage it without help. HOA management software is the perfect solution for self-managed communities and management companies alike. Schedule a free demo, call us at (800) 626-1267, or contact us online for more information.

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5 Ways The Condo Manager Software Improves HOA Communication

admin on January 2, 2019

Communication in homeowners associations is crucial for success. However, with so many tasks and responsibilities, it can be easy to forget appointments, misplace paperwork, or lose track of conversations — leading to communication breakdowns between homeowners, board members, and their association managers. Condo Manager software improves HOA communication so you can enjoy more seamless and efficient operations.

How Condo Manager Software Improves HOA Communication

Condo Manager is designed by association management experts and created specifically to address the needs of HOA communities, both big and small. Our software is equipped with HOA communication tools that you can use to improve the communication process of your community. Here’s what you can expect from Condo Manager.

1. Comprehensive HOA Database

Have all the information you’ll ever need at the touch of your fingertips. Condo Manager offers a web portal where you can create profiles for homeowners, tenants, vendors, properties, and associations.

The software will keep personal information such as names, addresses, phone numbers, email addresses, and emergency contact details. If there is an urgent matter, you can quickly lookup a homeowner’s contact information to quickly resolve the issue.

Condo Manager also keeps track of account balances and violation reports. Homeowners won’t have to call management to inquire about unsettled dues. They can just log into the web portal. As a result, associations won’t be overwhelmed with homeowner requests and can free up communication lines for more urgent matters.

2. Detailed Communication Logs

Condo Manager will store the full communication history of your association. The software allows you to monitor past letters, emails, and phone calls from homeowners, tenants, and vendors. The communication log will also show dates, times, call durations, notes, and personnel involved for your reference. Thus, you can always pick up where you left off. Associations won’t have to waste time retreating old ground and HOA members won’t become frustrated at having to repeat themselves during every call.

Condo Manager has robust tracking capabilities as well. For management companies handling multiple associations, the software can track how many hours were spent on communication. The Profitability Module will mark all billable items and generate a full report for easy invoicing. Since everything is detailed, companies can have effective communications with HOA associations that they handle.

3. Streamlined Communications

Associations spend a lot of time connecting accounting and service records with their communications. You have to jump between word processors and spreadsheets, cross-reference records, and double-check emails to get the information you need.

And even then, there are still a lot of opportunities for error. Condo Manager has streamlined the communication process so that your management team can work faster and more efficiently.

Our all-in-one-software has an integrated word processor. You can create letters for collections, violations, architectural requests without having to leave the program. There are custom options and templates so that you can quickly create letters and settle urgent issues in a timely manner.

Condo Manager also has email integration so you can send these letters, as well as financial reports, maintenance requests, and work orders, directly from the software. All you need to do is press the “Send by Email” button and it will be sent. You can also customize the settings to control when emails are sent and who they are sent to. Moreover, the software saves all the emails you send in case there is a need to retrieve the information later.

4. Convenient Reminders and To-Do Items

Condo Manager has built-in reminders and to-do tracking features so you’re always on top of association requests. For instance, you can set reminders to follow-up with homeowners. By keeping appointments, homeowners will feel seen and heard by their association.

The software can also create to-do lists to manage vendors‘ upcoming work orders. You can also set notifications for insurance expiration dates, utility payment due dates, or upcoming inspection dates to prevent lapses or service disruptions in your community.

5. Mobile Compatibility

We also offer Condo Manager Live, which allows you to access the software from a smartphone, tablet, or other mobile devices. Just as long as you have an internet connection, you can keep up with HOA communications.

You’ll be able to access account balances, violations, and work orders, as well as respond to emails and requests, even if you are out of the office. If managers or board members are unable to handle a certain request while off-site, they can easily send an email to concerned homeowners to ensure them that their request has been received.

Find Out How Condo Manager Improves Association Communication

The Condo Manager team understands the unique challenges that associations face, especially when it comes to HOA communications. With your specific issues and needs in mind, our association management experts developed software from the ground up to provide the solutions and support that you need.

Condo Manager is also more than just communications software. It features a full suite of services that can help with the day-to-day management of your community. For instance, simple but comprehensive accounting tools will make it easier to keep track of finances and maintain the financial health of your association.

Condo Manager can also be utilized as self-managed HOA software or by management companies handling multiple associations. The software can be tailored to deliver the association management services that you need the most.

Ready to find out how Condo Manager improves communication? Do not hesitate to call us at (800)-626-1267, email us at sales@condomanagerusa.com, or contact us online for a free demo or to learn more about our HOA software solutions.

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