The Homeowners Association (HOA) board has a fiduciary responsibility to owners to properly maintain financial records for the association. This means you must account for all expenditures, and detailed records must be kept. It is important to demonstrate transparency with these records and financials to members of the association. RowCal can assist with managing your HOA’s finances through web-based property management while keeping the entire process transparent to stakeholders.
States Move to Regulate Transparency in HOAs
Many states already have laws and regulations on the books to regulate how HOAs report their financials to the members of their self-managed community associations. Those states that have yet to regulate condo associations and financial reporting likely have legislation in process to do so. Transparency in financial management is ethical and a good practice for your HOA. With our web-based property management services, we can help you manage your association’s financial records and comply with state regulations and laws.
Avoid Lawsuits by Practicing Transparency
When you do not operate your HOA properly, you open yourself up for litigation. Most HOA boards are volunteer-based and self managed communities, and may not necessarily know the gravity of their responsibilities. By giving full access and practicing transparent methods of records and financial management, you can avoid lawsuits. The most common reasons owners bring lawsuits against HOA boards are:
● Failing to provide financial statements
● Failing to respond to requests for financial records
● Failing to hold elections
Meticulous Record Keeping to Demonstrate Transparency
An HOA board’s responsibility to owners involves methodical record keeping. You must record, track, and report every expense. With a volunteer-based board, this can prove difficult. Boards often look to management companies to assist with the arduous process of record keeping and reporting. Experts in the field like our web-based property management company can guide your board through how to be transparent with all record keeping and financials.
Monthly Reporting for Transparency
By reporting all transactions by category to the owners on a monthly basis, a board is fully transparent in record keeping and financial management. An expert management company can guide the board through reporting on financials and how they correlate with the governing documents of the board. Through reporting, owners know that their association dues are spent as they are directed by the association by-laws. Our property management consulting services with administrators and accountants can generate these reports for you to assist with HOA decision making.
Property Management Consulting Services by RowCal
With experts in accounting and record keeping, RowCal can do the heavy financial lifting for your board. Why reinvent the wheel when we can make sure your board manages your association’s fees and transactions transparently? We are a web-based property management company and have the technology you need to make your job on the board easy! For more information about joining our network, give us a call at 651-233-1307, or you can message us on our contact page.