January 8, 2012

In this week's tip, we give you a jump on smart homeowner association management in 2012 by revealing some of the best moves HOA boards made in 2011.

1. Fired underperforming service providers. "The best thing our associations did in 2011 was to really take a look at their vendors and jettison the dead weight," says Nathaniel Abbate Jr., a partner at Makower Abbate & Associates PLLC in Farmington Hills, Mich., who represents associations. "They got rid of suppliers, vendors, attorneys, and others who weren't getting the job done."

2. Cut costs to build goodwill. "We've made cuts to try to save money," says Jessica Rider, treasurer of the 116–lot Bryan Springs Subdivision Association in High Ridge, Mo. "We're working to earn the trust of neighbors so they'll continue to pay their dues, and when we try to raise dues, people will agree.

"When we initially took over the board, we had a company that had been taking care of all the collection of payments and payment of bills for the subdivision. We discontinued their services, which is saving us about $1,200 per year. Also, instead of mailing out newsletters and other communications, we decided to walk them around to each house; instead of printing so many documents, I put up a sign at the front of the neighborhood saying HOA statements are available and people can call if they want one. We also changed the snow–plowing company, which is saving us additional money. Finally we got neighbors together to do street repairs ourselves instead of hiring a company, which saved on labor costs."

Those are just two of Start 2012 Right: Review the Best Moves HOA Boards Made in 2011. Read the rest in our new article.

Best regards,
Matt Humphrey
President