HOA Best Practices: 10 Tips to Keep Your HOA Thriving

Homeowners’ associations play a crucial role in managing residential communities. By implementing effective HOA best practices, residents can foster harmonious living and streamline operations.

Over 40% of HOA residents report having a dispute with their HOA. Following HOA best practices can help standardize operations, avoid conflicts, and improve resource management. This can be particularly beneficial in Maryland, with over 6,400 HOAs. Standardization can ensure consistency in managing HOAs, reducing the likelihood of disputes.

Let’s deep dive into the most important HOA best practices for you to ensure your homeowners’ association is always moving forward.

1. Implementing a Transparent Financial Management System

91% of community associations reported that their budget for this year increased, making resource management a break or make for most residents.

Thriving HOAs prioritize financial management. This involves creating a realistic budget, regularly reviewing financial statements, and ensuring adequate reserves for unexpected expenses. It’s also important to collect dues in a timely manner and to pursue delinquencies aggressively. The complex nature of these tasks may require the expertise of a proficient property management service, such as West Property Management. We provide proven financial management solutions tailored to meet the specific needs of your HOA, ensuring its fiscal health and long-term stability.

2. Establishing Effective Communication Channels in Your HOA

A 2020 study by the National Center for State Courts found that communication was the top-ranked challenge faced by HOAs, with 42% of respondents citing it as a major issue. Establishing a robust communication system is crucial for any HOA to ensure rule compliance and overall satisfaction among residents.

West Property Management offers a state-of-the-art online portal that can be used by both residents and board members. This portal can serve as a central hub for all communications, including announcements, rule changes, and updates.

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3. Ensuring Adequate Reserve Funds for Future Investments

Ensuring adequate reserve funds for future investments in an HOA is a critical aspect of maintaining the community’s financial health. One of the first steps in this process is to conduct a reserve study. This study, typically performed by a professional, will assess the current state of the community’s assets, estimate their lifespan, and calculate the future costs of repair or replacement.

The results of this study will help the HOA board to understand the amount of money that needs to be set aside each year to meet these future expenses.

4. Maintaining Property Values through Regular Inspections and Maintenance

Another fundamental strategy in fostering a thriving HOA revolves around the regular maintenance and improvement of common areas. Ensuring the upkeep of shared facilities such as parks, playgrounds, clubhouses, and swimming pools plays a crucial role in enhancing the community’s aesthetics and functionality.

Well-maintained common areas not only generate a sense of pride and belonging among homeowners but are also conducive to fostering stronger community relationships.

5. Creating a Welcoming Community Atmosphere

Thriving HOAs also foster a sense of community among homeowners. This can be achieved through regular social events, community projects, and opportunities for homeowners to get involved in decision-making processes.

A strong community spirit can help to resolve disputes and encourage compliance with rules.

6. Implementing Conflict Resolution Strategies for Hoas

Conflict resolution is a crucial aspect of managing an HOA. One best practice is to develop a comprehensive conflict resolution policy. This policy should outline the steps for addressing disputes, including how to file a complaint, the process for investigating the issue, and the methods for resolving the conflict. It should also specify the roles and responsibilities of all parties involved. This policy should be made readily available to all members.

7. Understanding Maryland’s HOA Laws and Regulations

In Maryland, HOAs are governed by a variety of laws and regulations. One of the most important is the Maryland Homeowners Association Act (MHAA). This law provides a framework for the operation of HOAs, including the requirement for a written contract between the HOA and each homeowner, the establishment of a board of directors, and the requirement for annual meetings and financial audits.

Another key piece of legislation is the Maryland Condominium Act, which applies to condominium associations but has some provisions that can also apply to HOAs. This law outlines the responsibilities of the association, including the maintenance and repair of common areas, the collection of assessments, and the enforcement of rules and regulations.

8. Planning for the Long Term: Strategic Planning in HOAs

Successful HOAs also engage in strategic planning. This involves setting long-term goals for the community, developing a plan to achieve these goals, and regularly reviewing and updating the plan as necessary. Strategic planning can help the HOA to anticipate and respond to future challenges.

Another strategy is the implementation of green initiatives. This can include energy-efficient upgrades, recycling programs, and landscaping with native plants. Green initiatives can save money, improve the community’s environmental footprint, and enhance property values.

9. Developing and Enforcing Reasonable Rules and Regulations

Another strategy is the establishment of a comprehensive and enforceable set of rules and regulations. These should be clearly communicated to all homeowners and consistently enforced to maintain order and prevent disputes. The rules should cover a wide range of issues, including property maintenance, noise levels, and pet ownership.

Finally, successful HOAs prioritize transparency and accountability. This includes providing regular financial reports to homeowners, holding open board meetings, and responding promptly and honestly to homeowners’ questions and concerns. Transparency and accountability can build trust and foster a positive relationship between the HOA and homeowners.

10. Conducting Regular Board Meetings for Optimal Decision Making

Regular HOA meetings are another effective communication channel. These meetings provide a platform for open dialogue between residents, board members, and providers. To maximize participation, scheduling these meetings at convenient times and providing advance notice to all parties involved is important. The meetings should be structured and follow a set agenda to ensure all important topics are covered.

How to Implement HOA Best Practices for Your Homeowners’ Association?

Given the complexities associated with managing an HOA, the application of these best practices cannot be understated. Optimal use of these strategies ultimately contributes to an efficiently functioning HOA and a harmonious community atmosphere.

Navigating the intricate world of property management can be daunting, especially when you’re committed to upholding high standards as dictated by these best practices. This is where West Property Management services come into play.

West Property Management is designed to significantly streamline the implementation of these best practices, attuning your HOA management approach to emerging trends in property management while ensuring compliance with local laws and regulations.

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West Property Management offers complete management services from townhomes and single-family homes to Homeowners & Condominium Associations, no matter the size.

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{We retained West Property Management to take over managing our brand new HOA. As a brand new builder community, West Property Management had to help manage numerous complicated developer-builder-homeowner transition matters. Despite the often unpredictable and/or complicated tasks that our HOA faced, West Property Management handled these matters in a very “can do” and no-nonsense manner. Their timely approach, expertise and patience with a new, novice Board of Directors also made working with West Property Management productive and positive. The Board continues to enjoy working with them and highly recommend them for property management needs.
Michelle R.

When selecting West Property Management, you can expect professionalism, follow-through, and success in managing your property(ies). It all started with listening to our expectations and consistently delivering superior service and expertise without prompting for our 350 properties; telephone calls and e-mails were tactfully responded whether there was a complaint or a compliment.

When evaluating a property management company, we felt the primary factor was collaboration to learn what we should or should not do to effectively manage processes. The second important factor was the skillful management of suppliers to reduce outstanding receivables and ensure the successful delivery of work products through excellent customer service. West Property Management always displayed a “can-do” attitude and resolved any issues with persistent alacrity.

West Property Management’s impressive knowledge and practical approach we highly recommend irrespective of what level of management you seek. Both Lynn Weymer (our Property Manager) and Chris Westerlund (the owner) were always available to consult on Board matters and always resolved any presented issues. We will continue to work with West Property Management and look forward to our continued partnership.

Patricia F

It was a pleasure working with Chris. He was very professional and went above and beyond to make sure I was comfortable and informed every step of the way. I give Chris and West Property Management my highest recommendations and look forward to working with them for all my future property management needs.


West has been such a joy to work with – they’ve brought a new level of professionalism and experience to our HOA and we’re grateful to be working with them!

Mike L.

West Property Management has been so wonderful to work with. Excellent communication and customer service. A professional organization who provides a wonderful personal touch. I’d highly recommend them!

Ji L.

Chris Westerlund and West Property Management were great. Being a realtor, I deal with a lot of property management companies. I reached out to Chris about obtaining HOA resale documents. He was instrumental in getting the documents delivered to me that same day when we needed them in a rush. In addition, he used his resources to find the contact information for the company we had been trying to find for a couple of weeks. I’d highly recommend anyone/business looking for property management services to reach out to Chris and West Property Management!

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