If you are starting a homeowners association, or simply just getting into one, things might be confusing at first. This is a whole other world with different terms and issues you might not have heard of before. But don’t worry, a good homeowners association software can help you with all of that!
Basic Terms to Know for Homeowners Association Software
Homeowners Association (HOA)
A homeowner association is a group that deals with common living spaces in a residential area. In addition, they are responsible for individual property maintenance, like roof repairs or painting. An HOA is a legal entity and is usually made up of volunteer homeowners. These people aim to improve the quality of a neighborhood and create a sense of community.
Board of Directors
The board of directors, or the “board”, is the group of representatives that manage the association. These people are responsible for maintaining common areas, financial management, and complying with governing documents.
Board members are the volunteers that are typically divided into four types: president, vice president, secretary, and treasurer. All of them come together to create the board.
HOA Management Company
Sometimes the board decides to work with an HOA management company to help with their duties. Depending on the needs, this company can help and advise on topics from maintenance to finances.
Community Association Manager (CAM)
When a board works with an HOA management company, the CAM comes in as the representative of said company. They are usually present at board meetings and respond to any problems the board might be facing.
Fees are collected regularly from the residents in order to maintain order in the community and neighborhood. They can be collected monthly or yearly. However, the amount changes depending on the association. These fees go to regular operations like maintenance or insurance.
Apart from the fees, HOA assessments can be collected additionally. This usually happens when there is a shortfall in the budget, or when there is an emergency. In order to collect HOA assessments, a board vote is usually required.
Frequently Asked Questions about HOAs
What is a homeowners association software?
A homeowners association software is a platform that helps homeowners manage their community. Such software make the managing of an HOA much easier and usually more automated. With a good homeowner association software, you can manage your residents and keep all their data in one place. Moreover, you can track and collect payments and schedule meetings. You can also create a network for your residents to keep them engaged.
How do I find HOA information?
Say that you are moving to a new place and want to find the homeowners association. You don’t need to go all the way to the residence for that. All you need to do is find the name of your community and your association’s corporation information. For detailed information on how to do that, you can check out HOPB’s article on how to find an HOA’s contact information and documents.
How do I manage my small HOA?
Managing an HOA might seem hard if you are not familiar with all the terms and concepts. However, it is much easier than it seems! The most important thing in managing your HOA would be to act professionally and systematically. You should also be as transparent as possible with the HOA fees you receive from your residents. That would create a safe and trustworthy environment for your community.
If you want to provide the best service for your HOA but need assistance, you can work with a professional. You can get advice on legal and financial actions from people who know what they are doing. Alternatively, you can work with a homeowners association software. This would make your job of management and engaging with your residents much easier.
Can an HOA be self-managed?
You can self-manage your HOA, and it doesn’t have to be so hard either! You need to keep detailed financial records and be fine with seeking assistance when you need to. Some HOA managers can have problems with HOA management companies. So, one of the easiest ways to self-manage is through a homeowners association software.
These software usually offer management services and keep all your data in one place. With a homeowners association software, you can create events and discussion boards for your residents. You can also collect fees and send emails and invoices through most homeowners association software.
How do I track HOA fees?
A homeowners association software can help you with your finances as well. It is harder to keep track of payments manually. You need to do careful bookkeeping which takes a lot of your precious time. However, a good homeowners association software stores membership data and makes it easier to track fees. That way, you can see who paid their HOA fees and whose payment is overdue.
What is HOA accounting?
HOA members make regular payments to the board in order to maintain order in their living space. There are also occasional extra payments required for unexpected problems and fixings. These might include pool or road repairs, as well as new balconies or painting of the outer surface of buildings. All these payments make accounting a crucial part of HOA management. While homeowners association software can help you with that, you must be careful and transparent about your finances. This will help you create a sense of trust in your community.
Are HOA fees tax deductible?
There are some basic rules that apply to different situations. If your property is your residence and you pay regular HOA fees, you can’t deduct them from your taxes. When renting your property out, the Internal Revenue Service (IRS) allows you to deduct fees. If you are renting it out for only a portion of the year, you may deduct part of your fees from taxes. However, since tax deduction depends on your situation, you might consider consulting a tax professional just in case.
Raklet: A Great Homeowners Association Software
Raklet is an all-in-one membership management platform that functions perfectly as a homeowners association software. Automating your system and keeping all your data in one place makes your job of managing an HOA easy and practical.
We offer extensive features like creating a contact database and sending out mass emails and newsletters as well as automated invoices. You can collect HOA fees and export all payment information to keep track of your finances. Raklet also allows you to create events and a social network to keep your residents engaged and content. We are one of the highest-ranked homeowners association software.
Raklet has pricing plans that are transparent and customizable to your needs. Depending on the number of members you have, you can start paying at only 49$ per month.
If you are looking for a homeowners association software, create your account and start self-managing your HOA with Raklet today!
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