Behind every Homeowner’s Association (HOA) is a Board of Directors that keeps everything afloat. The board is responsible for planning the annual budget, communicating with homeowners, enforcing rules, handling disputes, and overseeing maintenance projects. However, without the proper knowledge of how to do these things, it’s hard to do them well. That’s why today, we’re going over seven reasons why HOA board training is so important.
Contents of This Article:
- What Is HOA Board Training?
- Who Provides HOA Board Member Training?
- 7 Reasons Why HOA Bard Training Is Important
- Ensure Compliance With Professional Management
What Is HOA Board Training?
HOA board training is important for successful HOAs. After all, most board members are volunteers who don’t get compensated for their work. Additionally, they’re not necessarily management professionals. So, it’s important that they go through HOA board training to do their jobs well.
Training consists of learning the ins and outs of the HOA, including the governing documents, responsibilities, and limitations of authority. During board training, members will learn how to manage the community’s finances, enforce HOA laws, communicate with residents, and conduct board meetings.
Who Provides HOA Board Member Training?
Most homeowner’s associations don’t require board members to have certain degrees or certifications. As such, they’re responsible for pursuing training to prepare for their responsibilities. They can learn how to manage an HOA in several ways, including the following.
In-House Training
Training doesn’t need to be costly. Instead of paying for professional training, current members can train new members. If members have been part of the HOA board for a long time, they can spread their knowledge to new board members.
HOA Management Companies
If you work with an HOA management company, they can also help with board member training. After all, most Philadelphia HOA management companies are already familiar with how your community operates, making it easy to pass on that knowledge. They can help new members learn their roles and responsibilities, conduct inspections, handle financial statements and vendor contracts, and get up to speed on any upcoming community projects.
Professional Training
Finally, new board members can pursue professional training to expand their knowledge and skills. Several organizations, like the Community Associations Institute, offer these training and certification courses. New HOA board members can also further their knowledge by attending seminars, online classes, or webinars.
7 Reasons Why HOA Board Training Is Important
Board training is crucial for an HOA community for many reasons. Having educated and experienced board members helps keep everything running smoothly. Here are seven reasons why having the right resources and knowledge is important for your community association.
- Manage Finances Properly
- Avoid Liability
- Handle Disputes Effectively
- Communicate Better
- Preserve Property Values
- Mitigate Risks
- Make Informed Decisions
Manage Finances Properly
Board members are responsible for handling the HOA’s finances, and as you can imagine, this is a huge responsibility. They must plan the annual budget, track community spending, approve expenditures, record transactions, and prepare financial reports. While these tasks don’t sound too difficult, they can quickly become overwhelming–especially if you don’t have experience doing them. As such, having the proper training and knowledge is crucial to avoid being short on funds.
Avoid Liability
HOA board members have fiduciary duties that they must uphold. This means that they are legally responsible for putting the association’s best interests first and acting in good faith. That said, they must be extremely familiar with federal, state, and local laws governing HOAs to ensure compliance and avoid legal issues. Undergoing training helps board members understand their own governing documents, including bylaws, covenants, conditions, and restrictions (CC&Rs).
Handle Disputes Effectively
Homeowners associations are made up of people with different viewpoints, values, and personalities. As such, it’s not uncommon for disagreements or misunderstandings to take place within the community. For instance, neighbors may fight, or board members may disagree on certain decisions. However, board members need to know how to handle disputes effectively, whether they occur within the board or outside of it.
Communicate Better
Communication is key in any HOA since board members are responsible for keeping in touch with the community. They must inform homeowners of updates and announcements, including HOA meeting notices, rule changes, fee increases, and other important messages. That said, giving proper notice of important changes or notices is not only good practice but it also may be required by law.
However, communication doesn’t stop there—it goes both ways. It’s important to have a streamlined way for homeowners to communicate with the board to express their thoughts or report any issues. Proper HOA training can help board members create policies and channels for communication between all community members.
Preserve Property Values
The HOA board of directors protects the community’s property values. However, this responsibility is quite subjective, and a lot goes into it. Board members protect property values by doing their job each and every day. From financial management to homeowner 
communication and rule enforcement, each of these tasks contributes to the bigger picture. Balancing all of these tasks can be difficult without proper HOA training, and some may fall to the back burner.
Mitigate Risks
Knowing how to protect the association from unforeseen issues is a major responsibility for HOA board members. They need to identify potential risks to the community, like safety hazards or financial risks, and implement strategies to mitigate them. Training can help board members recognize potential risks and teach them ways to prepare, reduce, and manage them effectively.
Make Informed Decisions
Board members constantly make major decisions for the association. While some decisions may be no-brainers, others can pose challenges, requiring adequate research and consideration. Some decisions may even need professional advice. So, when it comes to the decision-making process, board members must have proper training to know how to approach each situation.
Ensure Compliance With Professional Management
HOA board training is crucial for keeping an association running smoothly. In addition to keeping homeowners happy and property values up, training is important for compliance within the community.
Need More Advice? contact us today!
If your HOA is struggling to keep up with management tasks, or you need help with things like preparing the annual budget, hosting meetings, or scheduling maintenance, Bay Property Management Group can help! BMG offers a wide range of HOA management services for communities across Philadelphia. Contact us today and learn how we can handle all your HOA management needs!
