Leading Your Community to Success: Elements of an Effective HOA Board
Homeowners see their HOA Board of Directors as community leaders. Board members may not realize how closely residents watch their actions, but effective leadership is essential for the HOA's long-term health. What makes an effective HOA Board? Ghertner & Company believes open communication, strategic planning, financial decision making, productive meetings and community building make a Board effective.
Open Communication
Communication is the key to a successful HOA Board. Board members should regularly share ideas via email and in Board meetings and communicate effectively with the HOA’s property manager, other vendors, and homeowners. Keeping homeowners informed on what is happening in the HOA and the decisions the Board makes allows homeowners to be more involved in the community.
Strategic Planning
Being mindful of the HOA's long-term goals and needs is just as important to an HOA Board as its short-term and urgent goals. Boards must learn to balance these issues to benefit the HOA, even after current Board terms end and new Board members are elected. Regular reserve studies are one way HOA Boards can provide long-term strategic planning for their community.
Financial Decision Making
The Board must be interested in HOA financials, past, present and future, to protect the HOA and individual property values. Board members must uphold their fiduciary duty to the HOA when selecting community vendors, setting HOA dues, determining the need for special assessments and creating annual budgets.
Productive Meetings
Holding regular Board meetings to discuss HOA needs and plans helps move the HOA forward in its goals. Creating timely meeting minutes for homeowners to review also creates transparency in the Board’s decisions and allows homeowners to participate in what is happening in their HOA. In addition, regular meetings of the entire HOA allow homeowners to ask questions and participate in HOA business.
Community Building
As HOA leaders, the Board sets the standard for building community in the neighborhood. From regular community events to utilizing a welcome committee to make new neighbors feel noticed, the Board can make their HOA a place where homeowners feel truly at home.
For more Board member resources, including free board training, to make your community and Board their best, please contact your Community Association Manager. Ghertner & Company is ready to partner with you to ensure the long-term success of your HOA.