Top Questions from Condo Buyers in Denver

Over the last decade or so, the Denver metropolitan area has experienced one of the most significant growth periods in its history. The pandemic had more and more people moving out of large, congested cities and yearning for a more stable, quiet life while still benefiting from living near or in a city center. Mountain cities like Salt Lake City, Boseman, Asheville, or Denver, for example, experienced a flood of transplants from a slew of crowded states. In addition, places such as California, New York, Texas, and Florida saw a never-ending cycle for rising rent and home sale prices, driving its population to find more affordable means of living.

Many people searching for a new home that are intent on buying, instead of renting, will likely have a long list of questions they will be asking property managers to make the right purchase for themselves and their family and their current lifestyle. General Managers are the face of the community they serve and represent the overall association. Being prepared for some of the most common questions from potential condominium buyers will help them make the right decision and help the community as a whole. Denver has experienced a lot of change recently, so being aware of the city’s growth and its highlights will bring more buyers your way.

Here are the most common questions from potential homebuyers looking mainly in condominium communities. So whether you’re searching for a home or a General Manager looking for tips on how to help homebuyers make the right choice, the information below will give you a great starting point.

1. What is the market like currently in Denver?

The short answer is: extremely competitive. Whether condominiums or single-family homes, home values have been increasing and are predicted to rise another 9 percent, but it’s been closer to 12 to 15 percent over the last two years. Putting that in dollar amounts, say a home sold for $300,000 in 2019 – a 12 percent increase over the last two years means that same home would have sold for closer to $336,000 in 2021, if not more. As a result, buyers are forced to put more money down before purchasing to get a lower mortgage payment – or even outbid another interested buyer.

2. How can I be sure I bid a reasonable amount on the home I want?

When it comes to outbidding another buyer, bidding wars are not what they used to be and are certainly not over in the Denver metro area. Specifically speaking about condominiums, many empty nesters opt for the HOA condo lifestyle and want fewer responsibilities and upkeep on a home. They no longer desire the big yard that needs to be mowed once a week or the large driveway that needs to be shoveled every few days during classic Colorado winter storms. They’re willing to pay more for less square footage and often have the means to do so from selling a single-family house that was paid off long ago and sold for a significant amount more than what they bought it for 40 years ago.

At the same time, younger, new home buyers opt for condominium living for the same reasons of no desire to take care of a single-family home, yard, and many don’t need the space in a single-family house. Birth rates are on the decline, meaning fewer Millennials and Generation Z buyers have kids. Therefore they don’t want or need the extra space, and condo living fits their lifestyle better. Sellers might be more inclined to choose first-time homebuyers in a bidding war over an older couple simply because of time constraints. New homebuyers will have money in hand from a loan ready to go, whereas previous homeowners will need extra time to sell their current home and get the money for the new one.

If you have your sights set on a condominium unit – it’s in a great location, is just the right amount of space, has a fantastic view, and the community it resides in is perfect for your lifestyle, you’ll need to take all the necessary steps and do all you can to make sure you land that unit. A clean, well-written offer can frequently beat higher offers. Making sure you as a homebuyer are pre-approved for a loan amount, not just pre-qualified, lets the sellers know you are ready with money-in-hand and are prepared to make the deal as quickly as possible. Being pre-approved is just as good as a cash offer and will work heavily in your favor. Another helpful tip is writing a letter to the sellers to send with your offer. Making your offer more personal can sometimes lead sellers to choose one buyer simply because of their offer letter.

3. What are the HOA dues here, and what amenities will I be receiving if I choose to buy a condominium in your community?

This is more for General Managers – confidently knowing all the ins and outs of each HOA fee associated with living in the respective community you manage is essential. Be sure you can explain every fee and due in detail; what each one is for, how it helps the association, and how these fees benefit the residents. Give potential buyers a full tour of the community, and be sure to highlight all amenities, including popular common areas, any resident events, and especially security features/safety measures in and around the property.

Next, know the neighborhood! If you think the community is in a great location, explain why! Are there highly ranked schools nearby? Any great parks within walking distance? What about daycare centers for those with children? Or walking paths or golf courses nearby for older, retired buyers? What is the noise level like at night? Are crime rates in the area low? Let them know! As a General Manager, you should sell your community with the knowledge and confidence that buyers come to expect.

4. Is the building professionally managed or owner-managed?

Talk to buyers about management – what are the benefits to the way your association manages operations? For example, some buyers might be apprehensive about living in an association that is owner-operated. In contrast, others might prefer owner-operated properties and be hesitant to live in a professionally managed association for various reasons.

As a homebuyer, if you are unsure of the benefits of each, you can read through our other blog post highlighting this exact topic, found here. Then, consider your options and make a decision that best suits your needs and your living situation.

While these questions are just some of the most important and common ones asked, do your research on the neighborhood you plan on moving to. Visit the community in person if you can, and drive around. Talk to current residents of the area, visit nearby parks, and ask the locals! Current residents of the area will be your best asset to finding the right location for your upcoming move. General Managers are there to help you make the best decision, but trust your gut when it comes to such a big purchase. Denver is a top-tier city to move to and one that you surely won’t regret!

Community Living: Fall Activities in Houston and Dallas, Texas

As the saying goes, “Everything’s bigger in Texas”, and the amount of community-focused activities is no different. As stewards of homeowners associations in major Texas cities like Dallas and Houston, we want to share opportunities for our residents to explore and experience fun things in and around their city. You may be wondering, “why is our property manager providing such a rundown of nearby events?” Well, we feel that the best association management companies should be adding value however they can. As we see it, a big part of our jobs is to improve the lives of the residents that live in the Texas communities we manage.

Whether you’re a young professional, a growing family, or empty-nesters, these fantastic cities have something for everyone. There are a handful of annual events to start considering since many begin this month and move quickly into November. So get out your datebook and jot down some of these great options. Let’s start with the one that’s a sure crowd-pleaser – football! Before we know it, we’ll be in full holiday mode!

Fall Football

If there’s one sport that will resonate with almost every Texan, it’s football. Whether it’s high school, college, or NFL games, tailgating and watching your favorite team battle it out on the gridiron is something everyone loves. Whether you’re going to Arlington to see the Cowboys, or down to Houston to cheer on the Texans, football is something that brings us all together to enjoy good food, good company, and great games! If you prefer to cheer on your alma mater, check out the Tail Gate Guys that provide professional tailgate packages for multiple Texas colleges and universities.

Fall Marathons

Those in the Dallas area will have two options for partaking in upcoming marathons. The first is the Arlington marathon on 10/31. The second one is the Fort Worth marathon on 11/7, which might be the better choice for those who will be going trick-or-treating. For our residents in the Houston area, the Harvest Marathon Relay is coming up on 10/24.

Haunted Houses

What better way to get into the Halloween spirit than to visit a fright-inducing haunted house? For Dallas residents, look no further than the Cutting Edge Haunted House in Fort Worth, one of Texas’s highest-rated. It will take around an hour to walk through the haunted house located in an old abandoned meat packing plant (just typing that gives me goosebumps).

Houston area residents should consider the aptly named Houston Terror Dome for their local scare.

Festivals and Events

The annual Autumn at the Arboretum has begun and offers multiple different activities and events for Dallas residents. There’s too much to describe here, but rest assured, there are day and night events, a Fall market, scavenger hunts, and even a fantastic pumpkin village with over 90,000 pumpkins (yes, you read that right!). This year’s theme is “Bugtopia,” so expect hands-on demos of some creepy-crawlies and “bugged-out” pumpkin houses.

Houston residents, you’re in luck, too, because you have one of the ultimate Fall festivals nearby at Dewberry Farm. With over 40 attractions at the farm to try, we can’t list them all. But trust us, this is one destination you won’t want to miss!

There’s a good chance you’ve heard about the wildly popular Van Gogh exhibit that tends to sell out everywhere it goes. This is one event that both Dallas and Houston are fortunate enough to both have in their cities. As described from the exhibit page, “Van Gogh: The Immersive Experience is a 20,000 square foot light and sound spectacular featuring two-story projections of the artist’s most compelling works.” If you’re in search of an activity that allows for easy social distancing and is suitable for people of all ages, then this is it.

If you haven’t already heard, the State Fair of Texas is back after a two-year sabbatical. Hurry up; this larger-than-life celebration of all things Texas ends October 17th! This is the longest-running State Fair in the U.S. and a great way to meet and interact with fellow Texans from across the state.

Visit a Local Farm 

Texans may not get as many Fall colors as the northern states, but its gorgeous fields of sunflowers, seasonal pickings, and of course, pumpkin patches and hayrides sure help make up for it. Texas farms have it all. Fortunately for residents, there are quite a few farms to see the beauty of blooming sunflowers.

For unforgettable hayrides, pumpkin picking, and corn mazes, head over to Hall’s Pumpkin Farm in Grapevine, just west of the DFW airport. This old-fashioned family farm welcomes people of all ages to explore Fall activities. There’s no better place to find that perfect pumpkin.

For Houston residents, look no further than Froberg’s Farm for a fantastic local Fall festival only thirty minutes south. Pick your giant sunflowers, fresh fruit, or just get lost in their vast corn maze! Plan on spending quite a few hours and gettin’ a little dirty!

Dallas Area Activities

Dallas by Chocolate Taste Tours

Want a tour of some decadent treats this Halloween? Well, the folks at Dallas By Chocolate have you covered. Whether you’re a self-proclaimed foodie or just like to eat, they have something for all appetites, including their famous Chocolate tour, a Progressive Halloween Eats tour, Taco and Margarita Tour, BBQ & Brewery tour, and even a Vegan tour! From now and into the holiday season, sign up for one of their highly acclaimed Dallas tours.

Pumpkin Nights at Howell Farms, Now through Halloween

If there was a “holy land” of pumpkins, this just might be it. Bring your family and friends to stroll down a half-mile walking path highlighting over 3,000 hand-carved pumpkins! See larger-than-life Jack-o-Lanterns, the world’s largest pumpkin guitar (who knew!), and even a pumpkin pirate ship! If you’re not all pumpkin-out after that, then stick around for fire dancers, pumpkin carving, pumpkin games, and a bevy of delicious treats.

Wings Over Dallas Airshow, 10/29 – 31 

This one-of-a-kind Airshow features over 40 aircraft from WWII, including bombers, fighters, and support airplanes. This year’s theme, “Texas Goes to War,” will highlight the Lone Star State’s significant contributions to support America’s victory.

Houston Area Activities

Although we’re based in Dallas, we have exceptional communities that we manage for our neighbors in Houston to the south. Houston is the largest city in Texas with roughly 1,000,000 more residents than Dallas; no wonder there’s plenty to do! As an easy overnight trip, or even a day trip, here are some significant events for residents to consider attending this Fall.

Oktoberfest in Houston, 10/22 – 23

Have a hankering for some good beer, hearty food, and polka music? Well, you’re in luck! Houston’s annual beer festival is an excellent opportunity to experience some German culture, try out some tasty varieties of beer, and play some games.

The Texas Renaissance Festival, every weekend starting 10/9 through 11/28

You’ll have nine different weekends to choose from if you want to go back in time to an English village of the 16th century. These themed weekends in Plantersville feature magicians, jugglers, minstrels, troubadours, and comedians on six stages! The unique Renaissance festival is sure to make some lasting memories for people of all ages.

The Nutcracker Market, 11/11 – 14

Kick-off the holiday season in style with Houston’s Ballet Guild’s Nutcracker Market. This annual event has TONS of shopping options and features holiday decorations, food, clothing, jewelry, and even furniture.

Planning an Event in Your Community 

Now that we’ve reviewed some notable local events outside of the community, let’s check what it takes to plan an event within the community. Many homeowners associations host events throughout the year to celebrate the changing of seasons, holidays, and well, just because! However, properly planning an event of scale can be a tall order. Homeowners can’t assume that the HOA board members will be able to handle the planning and execution of social events in addition to their regular duties. Creating a social committee dedicated to filling out a calendar of community-friendly events is a great way to keep residents involved and drive engagement.

When brainstorming events for your community, try to develop ones that reflect who the residents are. If the population in the community varies quite a bit in age, then plan different events to appeal to different tastes. For instance, adults may be interested in a Fall wine tasting, whereas young families may want an outdoor party with games and live music. Offer a mix of annual, monthly, or even bi-monthly events. And remember, lean on your association management company to help come up with some events ideas, gather input from residents, and help corral volunteers in the community.

One aspect of planning an event that can quickly put a damper on things is the budget. To minimize expenses, consider getting sponsorships from local businesses, having a raffle, or include a “suggested” donation for the event. If someone in the community is affiliated with party planning or event planning, consider asking for their advice. Depending on the size of the community and the approved budget, working with a 3rd party event planning service may be something to look into for some extra assistance.

Before your event:

  1. Make sure and have a promotion plan, so you get the word out to as many people in the community as possible.
  2. Use every channel of communication you can think of; signs, social media posts, email, and newsletters, to name a few.
  3. During the event, make sure and take lots of pictures to post after so people can relive the fun and entice those who missed out.
  4. Remember to generously thank all those involved and talk up whatever event is next up to try and keep the momentum going.

Always keep your association management company in the loop to help with logistics and ensure everything is covered, from permits, adequate insurance, and approved vendors. They can also help in the communications mentioned above, which there will be a lot of, and collecting feedback from attendees. The best community association management companies have the experience that will be a huge benefit throughout the process.

Lastly, don’t get discouraged if one or two events are successful as you hoped. Fostering community engagement takes time and effort, especially after living through Covid. Keep the calendar filled with a mix of events, and eventually, residents will start coming in droves.

The Value of Community

All of the activities we’ve shared have one core thing in common: community. It’s bringing people together, building and growing relationships, and of course, having fun! Our team works tirelessly to make all of the communities we manage feel like home. Worth Ross is one of the few association management companies in Texas that holds the Accredited Association Management Company (AAMC) designation granted by the Community Association Institute (CAI). This helps ensure that our community managers have, and maintain, the experience, education, and integrity to guide and advise our communities. But, it’s genuinely caring about the people in those communities and the community at large that truly sets our dedicated staff apart.

Even though there are fantastic events around both Dallas and Houston to look forward to, don’t forget to watch for personalized events within the association. Take advantage of any community-based clubs, seasonal events, upcoming holiday parties, or common area meet-ups. Reach out to the Social Committee, see what’s on the calendar, and see if they need any volunteers for upcoming events. Involvement and engagement from residents are what shape the community into what it is. You can only get out of it what you put in, so dive on in!

How to Be More Eco-Friendly at Your Association

You may be aware of all the environmental challenges the world is currently facing. Air pollution, climate change, forest fires, and an abundance of trash are just a few of the many ongoing issues experienced today. It may not seem like a lot, but each person making minor adjustments to their daily routines or swapping out certain materials – think one-time use items to biodegradable or permanent materials – can have a considerable impact long-term.

Many companies are already making significant changes and are looking for better ways to provide for consumers. For example, some are creating more environmentally friendly means of transportation (all-electric vehicles or hybrid vehicles), others have invented better ways to deliver energy to households (wind, solar, natural gas, etc.), and many are even changing the way employees make an environmental impact while still doing their jobs (opting for employees to work from home instead of commuting into an office every day).

Making these changes to your lifestyle is not easy. It can be financially taxing to swap out any of the products you are accustomed to using daily, as well as time-consuming and effort-intensive to find new solutions. These tasks can be multiplied when you think about where you live, too. Single-family homes use a lot of energy to stay warm in the winter and cool down in the summer, skyrocketing energy bills and making more of an impact on the environmental grid system. Living in an apartment or condominium building brings its own challenges. However, the impact of living in a condominium building or apartment complex is lower than living in a single-family home. The high-density living area creates a barrier against energy escaping, allowing units to stay warmer or cooler for more extended periods and get to the desired temperature faster. Suppose you’re already living in a condominium or apartment and still wondering what else you can do to help your community, the environment and leave a smaller environmental footstep behind. In that case, the following tips can give you some guidance. These tips apply to both individuals and management staff – think about how you as an individual can make a difference in your home and think about how you as a management professional can make a difference within the entire community.

  1. Reduce and Reuse Before You Recycle

We’ve all heard the saying “reduce, reuse, recycle,” but do we know what it means? Many of us already recycle as much as possible, but what about reducing and reusing? Think about the products you buy. Do you really need that new pair of pants or the latest tech piece? Are you going to eat everything you have on your grocery list, or will it sit in your refrigerator while you get takeout every night instead because you don’t feel like cooking? Part of reducing our footprint comes from reducing our intake of certain items. Creating a list of what you know you will eat before heading to the grocery store can help you minimize the amount you end up purchasing. It will not only reduce potential food waste but will save you money, too. Think about borrowing an item from a friend or neighbor before buying it yourself unless you know you’ll use it several times in the future. Reusing items is a similar but just as effective concept – taking something you’ve used before and putting it to work differently can provide you with what you need while eliminating the need to throw it away and buy something brand new. You can use that cardboard box you received from an online order for a planter or that empty candle jar as a makeup brush holder in your bathroom or a or pencil holder in your office. At the end of the day, if you cannot reuse an item and really can’t hold onto it, recycling is your best option if possible.

  1. Avoid Fast Fashion

If you’re unaware of what “fast fashion” is, many companies will produce clothing in vast quantities as quickly as they can to sell the most products in the least amount of time. Unfortunately, the quality of the clothing or accessories they sell is often inferior and wears out very quickly, meaning the consumer either throws it away or buys a brand new one to replace it, continuing the cycle. Instead of buying low-quality clothing in large volumes, try investing in a few staple pieces of clothing that you can wear with a variety of different outfits from more reputable producers. These pieces can be pricey; however, they will be much higher quality, and they will last much longer, meaning you won’t be replacing them anytime soon and adding to the problem. Opt for more sustainable fabrics such as bamboo or organic cotton.

  1. Switch to Sustainable Cleaning Products

Cleaning chemicals can be very hard on the environment, especially those that contain bleach. Switch to products that focus on using safe plant-based ingredients instead – you’ll get the same results without breathing in harmful chemicals, and you’ll reduce air and water pollution that comes with the use of harsher products. Even more so, the bottles that harsher chemicals come in are often made with a mixture of materials, meaning they aren’t recyclable.

  1. Promote Natural Lighting and Fresh Air

Depending on your apartment or condominiums’ location within your community, your access to lots of natural lighting will vary. However, you can certainly embrace the amount of light you do get by opening curtains or blinds during the day and leaving lamps or overhead lighting off while you’re home. Turning off lights when you are not home is obvious, but leaving them off when you are home is often overlooked. You’ll be surprised by how little you’ll need artificial lighting on a nice sunny day, and opening the window to let cooler air in in the fall and spring months will help cut down costs and lower your energy usage. If you do need to turn on lights around your home, give significant thought to switching out old halogen light bulbs with LED ones. These give off a softer light, so they aren’t as harsh on your eyes, and they use a considerable amount less energy than traditional bulbs. If you are allowed to paint your unit, you can increase the natural light in your home by painting your walls white or off-white, so light bounces off instead of being absorbed by darker colors.

  1. Decorate with Plants

It’s no secret that plants make the world go ’round. They clean the air more than you might think and can have an amazing effect when placed in a home. Having a full garden in a condominium or apartment unit can be tricky; however, keeping potted plants well-watered and placed in appropriate space in your home can do wonders for the air quality inside. Do your research on a plant that matches your skill level, lighting needs (if you have an apartment that doesn’t get much light, it would be best to get something that can be left in low-light conditions and doesn’t need direct sunlight for several hours of the day), and be sure to get something non-toxic for pets if you have any. They’ll enhance your air quality and the aesthetic in your home, making it more welcoming and a cozy space to call home.

  1. For Management: Host Eco-Friendly Promotion Events!

Communities are always looking for ways to get their residents involved and increase the social aspect of living at an association. One of the biggest appeals to living in a condominium community or apartment complex is the idea of being near more people and having the opportunity to be more social! Encourage your association’s residents to reduce their waste and learn to be more green by setting an example. If your community sends out a monthly newsletter, switch to a digital format sent to email inboxes if you haven’t already done so. Host community contests to see which floor can recycle the most cans/boxes/etc. or which floor used the least amount of energy over the span of a month. Get creative! Residents are typically more than willing to participate and are often looking for ways to be more environmentally conscious but don’t know how to begin. Take the previous tips and use them around your association; encourage recycling by doing it yourself and having your employees do it, also. Practice sustainability by not purchasing a new work outfit for every single day of the month. Talk to your management company or Board members about the budget and see if it is possible to spend the extra money to obtain softer, healthier cleaning options instead of the cheap, harsher versions. Keep windows propped open in the lobby to let fresh air in when the weather is nice and switch out all bulbs in common areas to energy-efficient LED ones. Decorate the common areas with low-maintenance plants to keep the space welcoming and the air clean. If you set the stage to show that the association and team members genuinely care about the overall environmental impact the building has, residents will follow suit.

  1. For Management: Stay Up-to-Date on Maintenance

Older, outdated appliances, generators, and air conditioning/heating systems are energy hogs. If your association cannot afford a replacement appliance that would be more energy-efficient, performing regular maintenance can keep older models running for as long as possible. If you find your association fixing an item far too often, it might be best to speak to your Board and management company about finding room in your annual budget for a newer model (that will alleviate higher energy bills). As an individual living in a condominium or apartment, ensure you notify your association of any issues you are experiencing with any appliances so they can be rectified as quickly as possible.

Many of the daily tasks and routines we do each day are performed like clockwork, and it can be challenging to change what we have been doing for months, if not years, throughout our lives. Of course, you don’t necessarily need to change your entire way of life, but implementing a few greener products and behaviors can significantly impact over time and positively influence others to follow suit.

Start with the more minor changes first, such as replacing the cleaning products you use that could be harmful. Make it a goal to recycle a certain number of items per week or month, or be more mindful of the amount of food you purchase versus what you end up eating during the week. Next, visit your local nursery to see what kinds of plants would do best in your home, match your skill level, and the commitment level you can give each week. After you are doing well with these changes and feel you are making positive progress, move on to the more complex changes such as changing where you shop for clothing (look for more sustainable pieces or shop second-hand instead of brand new each time!) or even try your hand at composting any food remains instead of sending waste to a landfill. Talk to friends and family about your progress, and get your neighbors in on it, too!

If you are a management professional, speak to your management company or Board members about the changes you could make at your association to be more environmentally conscious. Making small steps in the right direction are just the beginning; if everyone did a small part, it would make a big difference.

 

Year-End Planning for HOA Communities

As the year comes to a close in just three more short months, Board members and management companies are beginning to look at solutions, to-do lists, budgets, and planning for the year to come. Reflecting on the year’s performance is an extremely helpful and necessary way to gauge success among profits as well as satisfaction with team members and residents.

Many Board members look at the obvious, such as finalizing a budget or end-of-year maintenance on both the interior and exterior of their community but reviewing some of the less common items can help propel your association into being prepared for the unexpected and for the year ahead.

Here are some of the most common items you can do to assist your association with year-end planning:

  1. Finalize all your projects. Regular maintenance items that come from residents are weekly, if not daily, occurrences that cannot be avoided. Bigger, more daunting maintenance tasks, however, should be finished before the new year rolls around. Fixing an elevator, repainting parking lot stripes, recementing a community sidewalk, painting common areas, or leveling driveways are a few of the many more formidable jobs that Board members may look past or put off due to budget constraints or hesitation for any number of reasons. Talk to your management company if you are having budget issues and have large projects that need to be completed before the end of the year – these should be top priority in most cases and while difficult, sometimes do not take as much time as you might think.
  2. Review your rules and regulations. Go over them with a fine-tooth comb and spend lots of time with your fellow Board members to assess each one. Figure out which rules and regulations still hold power and relevancy, while others are fine and only need minor adjustments, and figure out which ones need major overhauls. Local and federal laws change constantly and reviewing your community’s rules and regulations can help you stay compliant and avoid any issues that may arise with businesses, team members, or residents. Ensure these rules and regulations are being enforced within your community.
  3. Set goals for the new year. Just as individuals have New Years’ resolutions, your association and Board should strive to do the same. Have round-table discussions on what each member wants the association to look like over the next year – not just appearance-wise, but on more complex elements such as your reserve funds (should you be saving more than you did the previous year or are you maintaining a steady flow of income into the account?), methods of resolving issues among residents, or even trivial items such as how you choose to welcome guests and residents as they enter the building. Think about your residents and how you currently serve them; do you want more lifestyle planning in the form of resident events (either virtual or in person)? Do you have a way for residents to freely express their concerns, questions, or suggestions to onsite team members; and conversely, a way for them to give praise and allow team members to be recognized for going above and beyond? Keeping the onsite team members happy is just as important as keeping residents happy. Give them the space and opportunities to surpass expectations at your community and the residents will notice.
  4. Create an annual HOA calendar. If you don’t have one already, ensure your Board and management company are aware of any and all meetings by creating an annual calendar. Keeping everyone on the same page is beneficial for many reasons, but most of all removes any chances for confusion or being misinformed. Keep this calendar updated – stay organized as a Board and your management company will thank you. Log everything from Board meetings, to community events, to planned training sessions, and especially important dates such as voting sessions. Planning in advance leads to better participation and attendance in the long run. If it’s on the calendar, the excuse of “not knowing about it” simply won’t cut it and will keep everyone accountable.
  5. Confirm budgeted expenses. Talk amongst your Board first to identify where and when your association will need to spend money. Consult your management company if you are unsure of where or how to budget certain expenses. If you don’t have a management company, seriously consider hiring one. Certain higher-end companies like Worth Ross Management Company (WRMC) offer boutique services including financial management, giving your Board an edge on tackling your budget and helping your association spend money in the most effective and efficient way possible.
  6. Identify training needs. Team members will come and go; it’s a simple fact of doing business. Your association will need to plan ahead for this in the event you have to hire new people or in the favorable event that you end up promoting certain team members and needing to fill their previous position. As each year passes, look at where each onsite employee is and assess what training needs to be done. Producing training sessions can be difficult and time consuming but can be made easy with your management company if they have a dedicated training program and director, like WRMC does.
  7. Notify homeowners of any changes. Lastly, it’s important to communicate any changes to fees, rules and regulations, or any other aspect to your HOA community that affects their living experience. Talk through the changes with them if they have any questions or concerns. Respond to their inquiries and address anything they have to say in a professional and helpful manner.

 

Above all, it’s up to you as the Board to make sure your association is thriving and its residents are satisfied with the community they choose to call home. The end of each year is both an opportunity to learn from past mistakes as well as an opportunity to implement positive changes in multiple ways. Soliciting feedback from residents and team members is always a helpful and easy way to understand where and how you can improve your association. If you have a management company, lean on them for help – that’s what you hired them for in the first place! They have industry professionals who will be able to guide you in the right direction and have your best interests in mind.

 

Considerations for 2022: Lessons Learned in 2021

Covid continues to have an impact on everyday life and perhaps the most challenging effect has been on maintaining and forming new relationships. The social aspects of community living saw a lengthy hiatus as residents adapted to the “new normal.” Working remotely, a pause on in-person social functions, and the closure of common areas kept us from the regular interactions we all crave. Highrise and other multi-family communities throughout Texas and Colorado missed out on a large part of what makes community living desirable for so many – the neighborly connections. While some restrictions have subsided, it takes time to feel as comfortable as before and to rally the same level of social involvement from residents that was present pre-Covid.

 

Lessons on staying social: Making Virtual Fun

The pandemic has taught homeowners associations and property management teams to value social interactions. Social interaction and relationships need a venue to form and grow, regardless of current events. With current technology offering us many viable ways to stay connected and meet online, homeowners associations can give residents a platform to connect easily. These platforms have been a solid way to continue operating and conducting the daily business of the community. But as stewards of the community, HOA’s need to promote online activities and gatherings that bring residents together in an informal and fun atmosphere, not just for formal meetings. Many communities learned to look for new technologies to pair with Zoom to create entertainment options for residents.

Online events will remain a part of our lives. Regardless of the pandemic status, virtual community events should be part of the social plan for every homeowner’s association. Remember that residents will have varying comfort levels around Covid so take advantage of virtual events to bring more people into the mix. That doesn’t mean it should take the place of in-person gatherings or events, especially when it’s safe to do so. For example, Fall will still be a great time to plan outdoor events, but that may not be an option come winter depending on the location. For an online event, consider hosting a virtual game like bingo or trivia. It could be something with a broader appeal, too, such as hosting a concert by a local artist or something more specialized like a monthly book club. The main goal is to bring people in the community together, whether safely in person or comfortably online. Make these virtual events Covid-free zones, meaning steer the conversation towards the event theme or other positive news in the community.

Another consideration for keeping up social is the uptick in home sales, bringing new neighbors to communities over the last year. It’s always essential to assimilate new residents into the community fold, so they begin reaping the benefits it offers. Although a virtual experience does not provide the same level of personal connection, its use to bring residents together is vitally important. The last thing an HOA wants is to begin losing the feeling of community due to a lack of personal communication.

 

Lessons on communication: Don’t Waiver and Never Assume

The pandemic has shown HOA’s and their property management teams that when decisive measures are necessary, implement them quickly without second-guessing those decisions, and communicate them often. With so much information to process and the immediate need to act on it, keeping a united front and consistent messaging helps keep residents safe and in check. When new information is presented (as it always is), it’s okay to update policies or procedures. However, while they remain in effect, the entire team needs to be aligned. Use available data and advice from the State and Federal levels to inform decisions and cite them when addressing residents. There is no such thing as “over-communicating” when a misstep could have extreme consequences. Fight the urge to make any exceptions, even for board members. Giving any special treatment can unravel into a more significant problem than its worth and cause infighting within the community.

Another area for enhanced communication within HOA communities in 2021 was the budget. Making sure residents recognize how costs can fluctuate during unplanned events is critical. The HOA still needs to collect and generate income regardless of what is happening in the world. However, it’s crucial to temper a strict business approach with an appropriate empathetic response. Some residents fell on difficult times financially during the pandemic, so having payment options that balance what the HOA needs versus the extreme circumstance is something worth embracing and communicating. Even though association fees cannot be waived, consider what, if any, association billing costs could be to help residents in need.

Lastly, board members and the property management team have seen residents who dealt with the effects of Covid differently. Some residents, for instance, may have felt significant stress and neglected their property that has otherwise always been well maintained. Or some residents may have had in-home gatherings with family and friends and unknowingly violated parking restrictions. As the pandemic restrictions continue to fluctuate, it’s important to emphasize the rules and dispense violations as necessary and continue open communication as long as there’s a firm and fair approach and everyone has the same level of accountability.

 

Lessons on financial planning: Emergency Buckets are Needed 

While most associations and planned communities pay time and attention to their financial planning priorities, some were not entirely as prepared for the needs of Covid as they would have preferred to be. The importance of sound budgeting and having a healthy operating budget and reserve fund has become even more evident. For instance, increased cleaning costs hit operating budgets and will likely remain high for the foreseeable future. In addition, with more residents working from home, it puts a higher strain on the community infrastructure and facilities, which will require more regular servicing.

Boards and management teams now know that maintaining a solid financial bucket for emergencies is not an option. And residents understand as well. Communities are encouraged to share all the unexpected expenses of Covid with their residents and discuss how an emergency fund can be maintained. At what level would they like to have it funded (how much should be in there?), and if not there, how will they reach that goal? Many underfunded HOA communities and boards had to make the hard decision to increase assessments or implement emergency fees. That hard lesson has created a more diligent focus on preparing financially and otherwise for the unknown throughout Texas and Colorado communities.

 

Looking Forward

The trials and tribulations of Covid produced well-equipped HOA’s and property management teams to meet unpredictable challenges. They understand how and when to execute and enforce policies, manage resident expectations, use technology to their advantage, and keep the fabric of the community intact through proper communication. Living through a pandemic also informs the team what other resources they may need at their disposal in the future, response plans and procedures to have in place, and additional local contacts that can be of use.

The common saying from the start of Covid has been, “we’re all this together.” From a community standpoint, nothing could be more accurate. Our neighbors are a select few people we welcome into our lives. Living through Covid has strengthened the bond for many groups, especially those residents who formed new friendships and people to rely on during a very stressful time. It’s still premature to say we can move past Covid; restrictions are still present, and some policies may have permanently changed. But with a team built of board members, property managers, and residents, significant challenges have been overcome, and whatever obstacles the future holds can be met – together.

How the pandemic has Forever Changed HOA Communities

It’s no secret that the COVID-19 pandemic has changed the way individuals live their lives, run businesses, and operate communities. We’ve seen unprecedented changes and a dramatic shift to a “new normal” across the world for simple, everyday operations. Like many other businesses and organizations, homeowners associations are one of the many environments that had to prepare for an extra level of safety regardless of their standard precautions. This meant taking additional steps for sanitization, shutting down common areas to prevent spread, ensuring employees were not sick or running a fever (for example checking their temperatures at the start of each day), and sharing accurate information to keep residents and guests informed of the latest updates.

Teamwork, resiliency, creativity, and ingenuity helped associations across the nation develop new ways to fight the spread of the virus. As a result, new responsibilities fell upon HOA management companies to guide onsite team members in the correct direction, recommend the suitable courses of action for dealing with the unknowns of the pandemic, and deal with something that they have never had to handle before. With this new virus came changes that continue to be used to ensure cleanliness, sanitization, and safety. Here are some of the many ways that HOA communities have been affected.

Safety & Cleaning
Studies determined that coronavirus could survive on surfaces for up to three days or longer, meaning new, robust, and more tedious cleaning practices had to be implemented for each community. Common areas such as pools, gyms, gathering rooms, or business centers had to be closed off; however, high traffic and essential areas (i.e., elevators, lobby, front desk, etc.) were monitored and cleaned frequently due to the threat of the illness.

The closeness of the residents in condominium communities posed a more significant threat than larger, single-family home communities for example, and frequent cleaning became critical. However, other than performing daily wipe-downs of common areas, simple efforts such as maximizing sunshine and natural light as well as allowing fresh air to flow through common areas proved to significantly reduce the virus’s surface life.

Adopting New Emergency Policies & Operations
Many, if not all, communities had to adapt to the new normal by updating rules and regulations and modifying their operations to respond to COVID appropriately. Board communication was critical here, especially at the beginning stages of the pandemic when most were unsure how to carry out day-to-day operations. Virtual Board meetings quickly became standard practice, and figuring out new ways to communicate was essential.

Communicating with Residents
Ensuring all residents were in the loop and updated on the latest information regarding community rules and regulations, CDC guidelines, and other safety aspects were often one of the top priority items after sanitization. Emails or telephone calls helped, as well as posting written announcements in common areas helped to spread the word – without spreading the virus.

Likewise, keeping residents occupied while stuck inside their homes became a challenge for many associations. Many overcame this with the introduction of Zoom meetings and hosting virtual resident events. While residents were disappointed when communities could no longer host regular in-person events, these virtual options still allowed them to get to know their neighbors and community team members. The virtual resident events gave communities a new way to reach their homeowners without breaching any safety guidelines and gave residents a way to stay connected without leaving their homes.

Accessing Reserve Funds in an Emergency
While many of the precautions could be taken with little to no cost to the association, it was more important than ever to have ample reserve funds in the event of a significant emergency during the pandemic, when money became very tight for many businesses and associations. Companies like Worth Ross Management help communities to manage their expenses and set up (or grow) their reserve funds for a fiscally responsible future – and have more than enough available in case the community needed to be protected at some point in the pandemic.

The sharp increase of residents moving to temporary or permanent work-from-home situations or losing their jobs altogether caused a rise in systems being used more (air conditioning systems or heating systems, plumbing, and water systems). This spike in usage resulted in a need for maintenance more often or, in some cases, complete replacement of systems to meet the usage demands of more people staying home full-time. The unexpected failure of said systems can put a huge, irreparable dent in an association’s reserve funds and puts unnecessary strain on Board members to gather funds quickly for the next repair. On the other hand, having ample reserve funds protects the community, its team members, and its residents from having to suffer due to insufficient cash on hand.

If your community is still facing the detrimental effects of the pandemic and you haven’t found the right solutions yet, it might be time to find a new management company. The right company will guide your association through the complex management maze and keep your property swimming instead of only keeping your head above water. Management companies like Worth Ross Management Company have the tools, resources, and experience to help your community flourish and thrive so your residents can enjoy their living experience. Reach out to us today if you’d like to learn more about our wide array of services and how we can help you reach your fullest potential.

The Pros & Cons of Buying in an HOA Community

Homebuyers have more options when purchasing a home than ever before, and there’s no doubt that both the Texas and Colorado housing markets have excellent choices for residential communities. Whether you’re looking for your first home or fifth, there are pros and cons to living to own in a community run by a homeowners association.

Over 25% of the US population lives in HOA-planned communities, condominium communities, and housing cooperatives. Many residents have strong feelings about living in a homeowners association. Most are  positive, or they wouldn’t have decided to move there. Before  taking the plunge, however, make sure you have all the facts because membership is not optional once you do. Below we’ll review what buyers need to take into consideration before purchasing.

 

What is an HOA?

For those that may not be familiar, a homeowners association, or HOA, is an organization that oversees a group of homes, creates and enforces rules, and facilitates the necessary maintenance of the common property. The enforcement of the covenants, conditions, and restrictions, known as CC&Rs, is the responsibility of the HOA.

The HOA charges its residents applicable monthly fees for use in managing the property. The association will likely partner with a property management company to determine a budget, maintain common areas, and meet guidelines. They will handle budgetary items and also handle resident disputes.

 

The Pros of an HOA

If you’re an active home buyer, chances are there are HOA options in your town or city. There are significant benefits that come with purchasing into a homeowners association. The first and maybe most popular is the low-maintenance lifestyle it affords residents. Owners may have a personal space like a patio or balcony to maintain, but the general landscape and all hardscape areas are often fully maintained by the association. . In many HOA’s, significant expenses are included in the monthly dues such as snow removal, trash collection, pest control, and maintaining building exteriors. Certain utilities are also commonly part of HOA fees.

Another huge draw of living in a community is the access to various amenities. Things like a gym, tennis and basketball courts, pool, clubhouse, and playground are popular conveniences offered by many HOA’s. With people living busier lives and many working remotely, having certain luxuries right at your doorstep can save time and money. In addition, many of these common areas provide an effortless way for residents to meet and form relationships.

Another big perk is the options for socializing. Most communities will have a social committee that fills out a social calendar with seasonal and annual events for residents to look forward to each year. In part from these efforts, HOA’s provide a direct conduit for making friends for residents who move in from outside the area. Finding that sense of “community” is very doable when your choices exist right outside your front door. Plus, you’re surrounded by like-minded neighbors that all chose to purchase their home for very similar reasons. If there is an issue with a neighbor, the board can act as a mediator to settle the dispute.

Finally, peace of mind can come with owning in a community, knowing that the value of your home is being protected. One of the core objectives for HOA’s is to preserve, and grow, property values for homeowners. With a home being the most significant purchase many will make, having a team of board members and property managers looking out for it is a great benefit.

 

The Cons of an HOA

First off, there are fees associated with living in an HOA. Depending on the level of services and amenities that are covered, fees can vary quite a bit. It’s good to know how often, and by how much, costs have increased over the last few years. In addition to the standard monthly fee, there will inevitably be an assessment for some needed repairs or facade changes at some point. These shouldn’t happen very often, but it’s something to remember.

With an HOA, there are oftentimes a long list of rules. These will be laid out in the governing documents and include various property and parking restrictions, noise rules, allowed pets, and rental guidelines. The regulations in place will also limit the control homeowners have over the personalization of their homes. From holiday decorations to plantings and color choices, the HOA controls many of these decisions. If you’re the type of person that wants to put a haunted house in their front yard on Halloween, an HOA probably isn’t for you. Things like architectural changes to your home and renting your home (if allowed) will have structured processes to go through. Those processes can seem daunting but are in place to keep things running per the bylaws and rules. Keep in mind there is more conformity than not when you belong to an HOA.

Lastly, although an HOA board is organized and ethical in most cases, there have been times when neither has been the case. A board consists of volunteers, and if funds are mismanaged or, in rare cases, there is some fraud or embezzlement, the whole community could suffer. As a resident, you still have to rely on the selected board members and the property management team to uphold their duties and responsibilities. If they aren’t doing their part, finding a solution can be an uphill battle, which may require legal measures.

 

Deciding if an HOA is right for you

When selecting a property, do a complete walkthrough of the amenities and the grounds and note the level of maintenance being done. If you encounter any neighbors on your tour of the home or property, ask them a few questions about the quality of the board and property management team. Check the website and social media of the community to learn more about the social aspects. Find out exactly what’s covered in your dues each month and get an idea of how much they will increase based on historical prices. Know the schedule of fees, what penalties are, and results from nonpayment, the heaviest of which could be a lien on your home.

Knowing some positives and negatives to HOA living, there are a few other things to consider before purchasing. First off, make sure and review the CC&R’s; know the rules, and be sure you’re willing to live within them. Next, ask if the community is solvent and how healthy the reserve fund is (assuming they have one). We recommend you inquire how often the board meets and request to see the prior board meeting minutes. Ask about the management company or team and ensure they are reputable and serve other communities with similar standards. Finally, you want to understand how responsive they are to homeowners when issues arise and how they treat residents.

If you decide to purchase into a homeowners association, the best way to know what’s going on is to become involved in the process. Volunteer on a committee, attend board meetings, and maybe even run for a vacant board seat. An HOA should always be representing the owners’ best interest. Remember, the board members are busy people who often care about the community and want it to thrive. With help from a valued property management team, homeownership in a planned community can be rewarding, less stressful, and an excellent way to meet and make friends.

 

What Colorado Buyers are Looking for in an HOA and Property Manager

Colorado metro areas have been surging over the last decade. The state’s largest city, Denver, has seen significant population and economic growth. With the stark increase of employment options and incredible opportunities for outdoor recreation, it’s easy to see why Denver is consistently ranked one of the best places to live in the US. As more residents have found their way to the Denver metro area, builders have stepped up to meet the growing need for housing with highrise condominiums, planned communities, and mixed-use associations. With growing options for residents on where to live, homeowners associations need to accentuate the benefits of community living while also choosing the right property management team to carry out and sustain the high bar set from residents.

 

The Draw of Denver

 

The Mile-high city may be known for the Rocky Mountains, excellent sports teams, and world-class skiing and snowboarding, but it’s also a well-established city of commerce. A growing population, a thriving business community, and the accessibility for leading a healthy lifestyle all make Denver a prime destination. Developers have taken note and have been adding more amenities to their properties than ever before. Modern communities will likely offer a fitness center, pool, basketball and tennis courts, hiking trails, biking, running, indoor and outdoor play areas, workspaces, and a community center. Highrises will offer similar amenities like a pool and fitness center and the added luxury of concierge-level service, lounges, and rooftop decks with sprawling views. These amenities are convenient and built into monthly fees while promoting and catering to the active lifestyle so many desire. It also increases engagement among residents and gives neighbors a chance to connect and build relationships.

 

Why Buyers are Choosing Communities With HOA’s

 

As Colorado continues to be a sought-after destination, builders meet the demand with new HOA communities. In turn, the HOA must select property managers as stewards for the community. Residents will choose an HOA for multiple reasons: they may want the low-maintenance lifestyle that an HOA provides, the host of amenities offered, the enjoyment of being involved in a community, and the peace of mind that comes with knowing the management team is striving to enhance the quality of life for residents while improving home values. The homeowners association must have a tight working relationship with the property managers to accomplish all of this.

 

The consistency of property values is a draw for some buyers. Making sure the building or community is maintained correctly and that bylaws are adhered to keeps things in order and provides sought-after assurances by owners. Seeing common areas well-maintained and owners doing their part to comply with bylaws related to personal property help removes the burden of homeownership.

 

The level of activity in communities is also widely appealing. Various opportunities for community involvement and social gatherings throughout the year create a strong sense of belonging between neighbors. For transplants, this can make all the difference when moving to a new city. The common areas and play found in communities provide an effortless way for new homeowners to introduce themselves. A community offers a quick and easy way to meet new people, make friends, and feel at home. In addition, committees provide a way to make a direct impact on the quality of the community.

 

Once you’re familiar with the governing documents of the HOA and additional rules, there aren’t many surprises. Homeowners know what to expect. When issues arise, they have the management company and the HOA board mediate disputes and confirm what is allowed. Many homeowners also take comfort knowing there are guidelines in place that keep the common areas, homes, and neighbors’ behavior at a high standard.

 

Selecting the Right Property Management Company

 

The homeowners association can’t handle everything in a community. It would require their undivided attention and still require a great deal of outside assistance. Board members need to find a well-established team that can manage the day-to-day activities, deliver on the HOA promises, and meet residents’ expectations.

 

There are a handful of criteria to consider when selecting a property management company. First is the experience—find a team that manages other associations similar in size and scope that can offer services designed around the community’s specific needs. An excellent way to hear about the experience of a property management team is through references. Ask how long has the partner relationship lasted and how was the community and association elevated through that partnership? Next, learn from the other communities under management. A property management partner that has demonstrated creative solutions to problems can apply successes from other communities.

 

Property management teams should challenge their employees to constantly educate themselves and earn accreditations to harness that knowledge and apply it to making the communities thrive. Continually seeking new knowledge and keeping tabs on the pulse of changing laws can make a big difference in providing real-time information to the HOA. Management companies that are part of industry organizations and have extensive in-house resources are ready to meet any challenge thrown their way.

 

The Difference an Excellent Property Management Team Can Make

 

The first goal for any property management team should be to exceed the expectations of their HOA partners. There is a lot to manage for any association; navigating the CC&Rs, maintaining a high standard of compliance, and enforcing rules and regulations. Taking a hands-on approach to inspecting the property, recognizing and mitigating risks, and ensuring the community is adequately insured should be dutifully managed. Vetting and overseeing vendors and ensuring they are appropriately licensed and insured, and monitoring the community’s financial health all fall under the umbrella of tasks to undertake.

 

Other main criteria are staying up-to-date with market trends and the latest technologies. Understanding the local real estate market and staying informed of changes to local and state laws help protect the HOA. Offering web-based services like an online resident portal, accounts payable solution for completing payments, personnel management, and vendor tracking make the operation run smoothly.

 

Another vital part of the relationship is communication. Keeping the lines of communication open with board members, residents, vendors, and others will help the neighborhood stay on task and within budget. In addition, keeping residents informed of any upcoming changes in the HOA and being prepared for meetings helps remove the possible complications.

 

A good HOA management company provides excellent customer service regardless of the situation. However, working with homeowners can be stressful. Any number of challenges can test the professionalism of the managers. Working in the best interest of the HOA means conducting business in a manner that reflects the priorities and professionalism of the board.

 

Colorado buyers in metro areas like Denver are discovering the many benefits living in an association offers. Juggling demanding careers, finding time to spend with family, or enjoying recreational activities is a balancing act. A well-managed association can provide an (almost) worry-free ownership experience, meaningful connections with neighbors, unrivaled amenities, and more opportunities to enjoy recreational activities. In addition, the specialized services of a property management team remove many hardships homeowners often deal with and allow them to lead the active lifestyle they crave.

For more information on Worth Ross’ property management services, do not hesitate to contact us or you can learn more here.

How to Handle Short Term Rentals in Your Community

Summer is here – that means playing in the pool, enjoying the outdoors, soaking up the sun, and vacationing in new places. Exploring new cities is a fun and exciting time and often comes with staying in a hotel, or a more popular option now, staying in a short term rental like AirBnB or VRBO. These are homes being utilized as a short term (<180 days) rental property either because the owner only uses it for only a period of time during the year or the house/apartment/condominium was purchased with the sole intent of using it as a short term rental property. These rentals are popping up more and more with COVID dying down and travel becoming more prominent as more people get vaccinated and feel comfortable taking vacations.

Some Homeowners Associations have strict policies regarding the use of a home as a short term rental property, while others may not due to the documents being drafted before short term rentals were popular. Short term rentals are often a good source of income for owners; however, they often pose many issues for communities – here are just a few:

Home sales in the community or neighborhood. Someone who wishes to purchase a second home with the ability to rent it when they are not occupying it (either permanently or just when it isn’t being used on their own vacation) would not consider purchasing a home in an HOA because of a rental restriction. In a different case where short term rentals are allowed in a particular HOA, some people may not buy a home in that HOA because they don’t want to be near a unit or home that has the potential for late night parties, loud noises, or obnoxious occupants that are apathetic to the surrounding homeowners.

Neighborhood diversity takes a nosedive. Commercialized short term rentals make it impossible for most families to live in some neighborhoods due to rent inflation. Rental homeowners have figured out they can profit from evading city laws and converting long-term living spaces into short term rentals, resulting in fewer homes on the market for long-term renters or potential home buyers. Your community can say goodbye to new families, young couples looking to settle down, students looking to rent a home, or anyone who typically can’t afford to compete with vacationers’ budgets.

Economic downturn in the local community. These short term rentals are frequently operated without paying taxes that benefit the surrounding communities, particularly the local restaurants, shops, or any local small business that relies on long-term residents for generating income. Illegal short term rentals are often argued as being unfair to the hotel industry and rarely follow fire and safety codes, provide worker benefits for cleaners, or pay transient occupancy taxes.

These reasons, plus so many more, should be enough for you to investigate what is happening at your property. What can you do as a Property Manager to combat these short term rental home issues?

First and foremost, your association Board must decide: are short term rentals allowed in your community? Are the residents and the Board content with allowing these short term rentals? If not, it’s important to look at how many units or homes are being used currently. If only a few are being used, it will be fairly easy to eliminate the problem at the source; if you find that a large number of units are being used for rentals, it will become very difficult to regulate these. Getting guidance from your property management company can help ease the strain on this process, no matter what your HOA ultimately decides to do about the short term rentals. One tool you can use to gain insight into which units are being rented out is Property Guard, a short term rental monitoring system. It analyzes rental activity, searches for keywords, descriptions, photos, and other data to produce a likelihood score on each listing. Daily reports will be sent to you and your team when a listing matches the criteria you have set, increasing your chances of catching a homeowner renting out their unit without prior approval. This software eliminates the need to search through online ads and websites for countless hours and can help you better manage your property.

Once you have determined how many units in your condominium building or how many homes in the neighborhood are being rented out short term, you need to check the local laws and your governing documents. Doing so will assist you if an argument arises between the Board and homeowners; they will most likely not want to give up the extra income and will try to persuade the Board to allow short term renting. If your association resides in an area where local laws restrict how short term rentals operate, your problem is half-solved. For example, the city of San Francisco enacted a policy that capped rentals at 90 days and required hosts to register with the city, among other laws.

There may also be permits and extra taxes involved, such as the transient occupancy tax. Speak with your association’s attorney, or your property management company if you do not have an attorney, to see what regulations apply to your city and county. Next, after checking these local laws and state-wide laws regarding short term rentals, you must look over every inch of your governing documents to see how (and if) they can help your association enforce rules around the rentals. If they are restricted, you can follow protocols listed out in the documents to move forward with eliminating the problem.

If your Board and residents decide, however, that they do not mind short term rentals in the community, there are several things your association can do to simply regulate them and ensure they don’t get out of hand or cause large problems down the road. It’s a good idea to create rules surrounding the renting of homes or condominium units to keep them under control. Bring your association’s Board together and an attorney to create a short term Rental Policy for your community. These policies will vary among associations, but as a good rule of thumb they should include the following:

  • Property owners must provide rental information to property management, including start and end dates as well as tenant details (name and contact information)
  • A reasonable short term rental fee to cover any added costs of home or community maintenance
  • Property owners and tenants must sign a short term Rental Agreement, which outlines the rules of the community. These can typically be signed or agreed upon when booked through sites like AirBnB or VRBO – tenants typically take on the understanding and agreement that they abide by all HOA rules currently instated, just like long-term residents of the community.
  • The Board may impose fines against property owners who violate the short term Rental Policy
  • Maximum occupancy limits, per the fire laws of the city or county

It is crucial that homeowners understand they are responsible for their tenants. Any violations could result in fines, penalties, or eventually the elimination of short term renting privileges of their home if repeated offenses occur.

Homeowner feedback is important when it comes to allowing or prohibiting short term rentals in your community. They can be hard to manage as laws change constantly and new short term rental services continue to pop up regularly. Ensure you get comments or answer any questions that your homeowners have in relation to the topic, just like with anything. If you are unsure which direction to go in with regards to short term rentals, speak with your property management company. Their team can provide expert guidance on the topic so you can make the best decision for your association and residents.

Growing Complexity in Property Management

There’s a host of factors that go into selecting the right property management team that can help build long-term relationships among residents and ensure the community is thriving. Keeping up with resident issues and property maintenance is just the tip of the iceberg. The right property management team can protect the community’s interests, handle the day-to-day activities, make sure the HOA is fully funded and in compliance with the CC&R’s.

Looking back over the last year, property managers and HOAs have navigated ways to keep residents safe during a once-in-a-lifetime pandemic, which was no small feat. But, if Covid taught us anything, it’s that we never know what’s lurking just around the corner. So as homeowners associations tackle an ever-growing list of demands and expectations from residents, property managers are finding new ways to meet those expectations.

Community challenges

With more states meeting vaccination goals and new cases trending down, a collective exhale is happening around the country. Residents are probably more excited about this summer than any other in recent memory, but that creates a new set of challenges. As we enter into an uncharted territory post-Covid, it’s up to HOAs and property managers to continually strive to keep the safety and well-being of residents above all else. But that doesn’t mean things are going back to “normal.” Some residents will not be vaccinated, and some will be. Outdoor gatherings will still be an intelligent and safe bet. Still, without a requirement to provide proof of a vaccine, not all residents will feel comfortable eliminating some guidelines. How to handle social distancing when at the pool, gym, or for vendors and maintenance staff working in the community need to be considered. It’s a balancing act that needs to manage the community’s social needs with the continued safety of residents.

With the summer season upon us, too, platforms like Airbnb and VRBO have some residents seeking to make some extra income by renting their homes on a short-term basis. Some residents worry about the character of renters that have no ties to the community. Assuming the use is for vacation purposes, it’s unlikely that short-term renters will gather a complete understanding of the community rules the HOA has in place. If renting is permitted by the CC&Rs, the homeowner must communicate the policies of the HOA to the renter(s). The responsibility is on the homeowner, and if a violation does occur, then fines will need to be levied. Property managers can keep an eye on the movements in the community, assist residents with questions, and help reinforce rules.

Beyond the question of renting is also the question of selling. During a strong seller’s market, which we find ourselves in now, many homeowners are chomping at the bit to list their property. If a homeowner wants to list their property, they need to be familiar with the covenants and rules that dictate the process. Depending on the state’s laws, there might be required disclosures provided by the association. There will also be fees paid to the homeowners association during the process, which the seller should know. No one likes feeling “nickel and dimed,” so helping residents understand the selling process can help make for a smoother transaction and give the buyer a more positive outlook of the community from the start.

Lastly, collecting special assessments is another area that has the potential to cause friction with residents. There may be laws defining the requirements for residents, which differ by state. Having residents recognize the importance of the project the special assessment is funding, how funds are collected, and what happens in cases of non-payment are complicated parts of managing a community that property managers can help facilitate.

Having a team to rely on

Beyond the challenges of answering a call in the middle of the night, other challenges arise from the city, state, and federal policies that may negatively affect HOA’s. When these regulations pass, a good property manager can define what that means. In addition, understanding the complexities of necessary insurance a community requires, inspections of mechanical systems and playground equipment, beautification and landscaping, and staying on top of the ever-growing list of maintenance requests and tasks can all be supported by the property management team. Finally, property managers can monitor local and state laws that may negatively affect property owners and disrupt the community as a trusted resource.

The HOA and property owners need reliable boots on the ground to care for their valuable assets. Whether your property is in an up-and-coming area, one that’s in high growth mode, or an already established neighborhood, the approach to managing a sought-after community needs to be well thought out and executed. Every community wants to bring in long-term neighbors. Property managers have experience in marketing a community, utilizing an ever-expanding network of contacts, and earning high marks from current residents that help attract new homeowners. They also have a reliable Rolodex of contractors, vendors, brokers, attorneys, and others that have your best interests in mind.

Technologies role 

The real estate market has been turned upside-down by technology. How money is collected, communication methods, and community engagement are all done in digital form. New residents can get a loan, do a digital tour, and purchase a home from their couch using a smartphone. In addition, logging service requests, paying rent, scheduling a showing, etc., can all be done from phone or tablet. Savvy residents will expect and select properties with these added benefits.

Most communities are already utilizing technology in some way, especially to stay connected. Beyond the specific community apps available, social media groups are a prevalent means of communication. One crucial aspect is making sure everyone is abiding by common sense guidelines when sharing or posting. In addition, the conversation needs to be dictated and monitored by the community to ensure communications are secure and appropriate.

But more than anything, all residents want to have the security of a good property management team. Managing expectations is paramount. Downloading a few apps may save some time and money but it’s no substitute the human touch provides, making residents feel like a priority. Technology helps process automation and speed up and route everything, but humans solve the problem. Staying on top of these trends and understanding the demographics of the users is invaluable.

How property managers make the difference

The role of a property manager is a dynamic one. HOA policies, resident feedback, overall maintenance, and the community’s reputation all factor into a homeowner’s decision to purchase a home and resident satisfaction. New rules and regulations can alter things in a zip code or on a national level. As a result, property managers have to be ready for anything. That may mean new technology, unforeseen regulations, a natural disaster, or something genuinely unexpected like Covid. Even so, property managers are constantly finding new ways to meet the expectations of the HOA and the residents they serve. Having a seasoned property management team that is in tune with the local market, is technologically savvy, and caters to resident’s needs is an invaluable resource in an ever-changing world.