HOA Board Members: Avoiding Common Mistakes

Описание: Any new position requires a cushion to adjust to the learning curve. While these mistakes are common and fixable, errors should be corrected immediately. In order to represent your board effectively, experts recommend obtaining Orlando Condo Association Insurance and to consider the following mishaps to avoid potential litigation and ensure success.

Mistake #1: Not Understanding How Your Association Works- Every association varies so the board members should learn their rules and regulations inside out. David Regenbaum, founder and CEO of Association Management, Inc. stated to HOA Leader, “New board members need to really learn about the association. They should go to a course or get their managing agent to give them an overview of their roles and responsibilities and the management plan in existence at the association.” Following these tips can deter any miscommunications and avoid breaking any rules.

Mistake #2: Doing More Than You’re Allowed- The association grants you authority under its governing documents. However, these regulations should be followed closely so as not to overstep your bounds. If your association’s governing documents do not specify that you are permitted to do something, it is unlawful to move forward.

Mistake #3: Not Standing by the Character of the Association- The existing lifestyle that the association provides should not be compromised due to new incoming board members. For example, if a budget is in place to allow for the director to drive a certain type of car, don’t attempt to change that tradition unless the budget is heavily restricted. This way, the integrity of the association and the lifestyle is not compromised.

Mistake #4: Hastily Switching Vendors- Although you may not be fond of the contractors, landscapers, CPAs, etc., do not pass judgment on these hired professionals that a previous board implemented. It is important to note that these contractors take direction from the board, so their work should not be criticized personally, according to Bill Worrall, vice president of The Continental Group.

Mistake #5: Looking at Short Term Financials- Jenny Key of RealManage states “Some new boards spend money they don’t have. Unless new board members are CPAs, many don’t understand how to look at association financial records, including accounts receivable, and understand how much money they really have to work with.”

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