Effective collaboration and communication with your professional team is vital for the smooth administration of a condominium, homeowner (HOA), or townhome community association. From day-to-day management to long-term strategic planning, board members must work with a variety of professionals to maintain the community’s property, finances, and legal compliance.

Below are several key roles within your association’s professional team and best practices on how to engage with them effectively.

 

Vendors and Contractors

Vendors play a critical role in the upkeep and functionality of your community. These professionals can include maintenance, landscapers, janitorial staff, security, snow removal services, lifeguards, and waste management providers.

Depending on the size and location of your community, additional specialized vendors might include pool maintenance technicians, elevator repair specialists, HVAC contractors, pest control services, lighting/electrical contractors, playground equipment inspectors, and irrigation system experts.

Clear communication of expectations, service standards, and timelines is essential when working with vendors and community contractors. Regular check-ins and performance evaluations can help ensure their work aligns with the community’s needs. Additionally, vetting vendors carefully can save time and resources in the long run.

 

Association’s Attorney

The association’s attorney protects the community’s legal interests. The attorney can provide legal counsel and compliance with federal laws including the Fair Housing Act (FHA), the Americans with Disabilities Act (ADA), and the Fair Debt Collection Practices Act (FDCPA). Attorneys also review state and local laws that impact community association governance.

Attorneys can draft or revise governing documents (ex. declaration, rules and regulations) and policies (ex. short-term rentals, parking, pets). Attorneys also handle complex matters such as assessment collection, litigation, and owner disputes.

The association’s attorney can review vendor contracts to ensure they comply with legal requirements, protect the association’s interests, and address potential liability. They can identify unfavorable terms (ex. overly broad indemnity clauses, inadequate termination provisions), and negotiate revisions to better safeguard the association. Additionally, the attorney ensures that contracts align with the association’s governing documents and state laws, reducing the risk of disputes or legal challenges down the road.

Building a strong partnership with your attorney involves proactive communication, timely sharing of documents, and seeking their input before making significant decisions, as opposed to once a problem is discovered. It’s especially important to work with legal counsel that is experiences with community associations and their unique challenges and legal issues. This ensures the board’s actions comply with legal requirements and protects the community’s best interests.

 

Accountants

Accountants can handle a variety of financial reporting om behalf of the association, including:

  • Budget preparation, review, and forecasting
  • Managing accounts payable and receivable
  • Reconciling bank statements,
  • Tax preparation
  • Audit compliance
  • Compliance with financial regulations

Board members should provide the association’s financial professionals with timely and accurate information while also regularly reviewing financial reports together.

When planning budgets, leverage an accountant’s expertise to forecast future financial needs and allocate the association’s budget appropriately. For example, work together to account for inflation and rising costs of labor and materials to help prevent financial shortfalls.

 

Community Association Management

Community association managers assist with the day-to-day operations of the association. A property manager can act as the primary point of contact for residents and vendors, ensuring that the community runs efficiently. Their responsibilities can include:

  • Project management
  • Budgeting
  • Vendor vetting
  • Responding to document requests
  • Communicating with association residents

To foster a productive relationship, board members should set clear expectations and provide regular feedback. Regular meetings and updates from the community association managers can keep everyone aligned on goals and priorities.

 

Insurance Agents

An experienced insurance agent, especially one with knowledge of community associations, is critical for safeguarding against potential risks. They can advise on policies such as general liability, property insurance, umbrella coverage, directors and officers (D&O) insurance.

Agents also have a comprehensive view of the insurance market and landscape, including rates, trends, and emerging risks, enabling them to provide well-informed recommendations tailored to the association’s needs.

Regular audits of the association’s insurance policies are necessary to ensure the community has adequate coverage. Maintaining open lines of communication with your agent and keeping them up to date with changes to the community can help the board understand the specifics of each policy and make informed decisions when revisions are needed or when claims arise.

 

Reserve Study Specialists

Reserve study specialists play an important role in the long-term financial health of community associations by assessing the community’s reserve needs. These professionals evaluate the condition of common area components – such as roofs, HVAC systems, and amenities – and project the costs and timelines for their repair or replacement.

The resulting reserve study helps associations determine appropriate reserve funding levels to avoid financial shortfalls or the need for unexpected special assessments.

In some states, specific reserve requirements are mandated by law, making it essential for boards to collaborate with reserve study specialists and their association’s attorney to confirm compliance. For example, some states require reserve studies to be conducted at regular intervals or mandate specific funding thresholds.

 

Conclusion

By fostering open and effective communication with your professional team, board members can create a well-managed, financially sound, and legally compliant community. Understanding each team member’s role and maintaining regular contact ensures that the community’s goals and sets clear expectations.