11 Common HOA Problems & Challenges and How to Solve Them

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Homeowners’ Associations (HOAs) are very important to keeping the harmony, appearance, and property values of a neighborhood. But that doesn’t make managing an HOA a walk in the park. HOAs have to deal with all sorts of issues, whether it’s a disagreement on rules, a budget shortfall, or a hiccup in communication. These challenges can be frustrating for board members and residents alike, if not addressed correctly.

The good news? If you approach things the right way, and with a little diplomacy, most things can be fixed. Now, let’s jump into some of the typical HOA headaches and how to deal with them in a preventive way.

Conflicts Over HOA Rules

Any HOA has a backbone, and that’s rules; however, they are also the biggest point of contention. Some residents say they are being stifled or unfairly targeted due to disagreements about lawn care and restrictions on exterior home improvements. An HOA should be clear and well communicated in what it stands for, in order to make the community more easy on themselves. Residents can also be involved in decision making through things like hosting town hall meetings or conducting surveys that will allow them to feel they are heard, not dictated to.

Why Financial Management Struggles?

Responsibly managing the community’s funds is no small feat. But, some HOAs encounter the problem such as unpaid dues along with the misappropriation of its reserve funds. Regular audits, as well as transparent financial reporting are the tools to fight these. If the board does not have financial expertise consider hiring a certified HOA accountant.

Poor Communication

Nothing will frustrate you more than being left in the dark. Poor communication can erode trust between the board and residents, and that’s whether it’s about upcoming maintenance or policy changes. The fix? Use email newsletters, social media updates and community apps. It’s important to be consistent—residents should never have to wonder what’s what.

Disputes Between Neighbors

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If you don’t keep an eye on them, those neighborly squabbles can turn into full blown feuds. It’s either noise complaints or property line disputes, with the HOA getting dragged into the middle. How to handle this is to encourage open dialogue amongst the parties first. In case that fails, mediation by a neutral third party can often solve the problem without tensions rising any further.

Board Member Burnout

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It can feel like a second job being an HOA board member, particularly for unpaid volunteers. Burnout can ultimately result in disengagement, or high turnover rates. Allow rotating responsibilities, recruiting new volunteers, setting achievable goals for progress to decrease the burden. Large communities can also benefit from professional management companies to take a load off their shoulders.

Residents Lack of Participation

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The common complaints are low turnout at meetings and not wanting to volunteer. Often, residents feel disconnected, or think that someone else will step up. To circumvent this, entice participation through party time, contests, gift card incentives for attending meetings. A little bit of creativity can go a long way in boosting involvement.

Enforcement Inconsistencies

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Evenly enforcing rules is one of the quickest ways to sow discord. If one homeowner is fined for a violation and another is ignored, people feel that it’s favoritism. Every enforcement action has to be documented and rules have to be equally applied across the board. Another way to make sure that enforcement is consistent is to train board members on fair enforcement practices.

Vendor and Contractor Issues

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Choosing good vendors for landscaping or maintenance or any other services can be difficult. The community can get frustrated, overcharged and have bad contracts or poor service. You want to vet your vet vendors, by seeking references and comparing multiple bids. An HOA lawyer can check into contracts to ensure the contract is in your favor.

Inadequate Maintenance

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Neglect common areas or delay repairs and you’re upsetting your resident and possibly damaging property values. Inspections are important and should be done regularly and the maintenance done proactively. If you don’t take preventative measures, you’ll be skimping; small fixes now can save you money and headaches later. The National Association of Realtors’s experts say that well cared for common areas can increase the property value by up to 10%.

Legal Challenges

Sometimes HOAs are sued for discrimination, contract disputes, or state law violation. It’s incredibly important to stay educated on local regulations and to seek the guidance of an HOA attorney. Transparency and fairness is often what can prevent legal disputes from even happening in the first place on these boards.

Resistance to Change

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Changing dues, bylaws, and procedures isn’t easy. Fear or misunderstanding often fuels resistance. Ease transitions by communicating clearly why changes happen and how they will benefit them. If you can be patient and persistent, you might get the reluctant residents on board.

Disclaimer: This list is solely the author’s opinion based on research and publicly available information.