PACIFIC NW HOA CONSULTING SERVICES
Knowhow in action
IS YOUR HOA STRUGGLING IN A CHANGING MARKETPLACE. CAN YOU HELP US STAY RELEVANT?
Yes, we can help you with specialized services that HOA's need occasionally.
What do we do?
We target Self-Managed Associations- because we provide occasional services that professional management companies do not provide ordinarily. For example, compare the list below
Management Companies HOA-Consulting-Services
Accounting Services Strategic Planning Service
N/A Strategic Planning & implementation
N/A Marketing Studies
N/A Compliance Issues
Accounting Services cover posting invoices and payments to the correct income and expense accounts, posting funds from the association’s members to each member’s account, and preparing periodic financial statements.
Strategic Planning includes a review of the Association’s past financial statements, the annual operating accounts and reserve accounts. The annual operating accounts should include appropriately named “maintenance accounts” that will cover the cost of services that are performed annually. The “reserve accounts” are not ‘emergency accounts’. They are designed to cover the costs of replacing or repairing real property owned by the Association that normally depreciates over 10-20 years.
One common problem for a self-managed Association is that it may decide to use a Reserve Account as an emergency source of funding which should not occur, unless the funds are replaced within the next budgeting cycle. When the funds are not replaced, the Association is simply pushing forward a major problem and misusing the Reserve Accounts may become a recurring habit.
Strategic Planning and Implementation Services usually occur if the Board or its members have decided to add an amenity to their Association (e.g., adding tennis courts). In many cases, the self-managed Association's Board or its members agree to add a new feature to their Association without considering the costs beyond the initial cost. Our services may require obtaining approval from a state or local planning agency; and they should cover a complete analysis of the initial cost, followed by the estimated annual expenses needed to maintain the condition of the added feature.
Marketing Studies - When an Association’s Board of Directors or its members propose adding a new amenity that will increase the Association’s annual operating costs and possibly reserves, the ideal objective should be that the change will improve the market values of every privately owned lot or home in the Association. Therefore, a marketing study should identify if this is the case prior to voting on the proposal.
For example, if adding an amenity increases the Association’s operating costs and there are one or more similar HOAs (similar in size, location, and amenities) then either a prospective buyer of a vacant residential lot in one of these comparable HOAs should be inclined to choose the lot that has the lower HOA’s dues, or the prospective buyer should be inclined to offer a lower price for the lot that has the higher HOA’s dues. Therefore, all decisions to make costly physical improvements to an HOA will not always improve the market value of every lot or home in an HOA.
A marketing study can also assess the degree to which a proposed change in a governing document would benefit certain lots at the risk of causing adverse impacts on other lots. In this situation, the Board or members will either drop the proposal or decide how the costs will be covered.
Compliance Issues Management Companies are usually well informed about changes in state and local laws that can change over time. But, management companies do not usually instruct their clients about procedures for announcing their meetings, for handling their meetings; and for preparing the Minutes of their meetings. The procedures are stated in Roberts Rules of Order that usually self-managed HOAs disregard. Although a certain amount of latitude is common among self-managed HOA’s, deviations from these Rules should be discouraged if they do not provide opportunities for members to object to the Board’s decisions that may adversely impact the members’ property.