Navigating the world of HOA or COA assessments can sometimes feel like a balancing act. We often hear concerns from homeowners about rising costs and financial constraints, whether due to fixed incomes, single parenthood, life changes, or unexpected challenges like layoffs. It's not uncommon for residents to feel uneasy when assessments increase, and we get it.
Associations encounter various factors that contribute to assessment increases, such as inflation, rising wages, labor shortages, interest rates, insurance hikes, and the simple truth that quality comes with a price tag. We've even been humorously accused of having a "solution to everything: spend more money." While it might sound like a punchline, it reflects a reality everyone faces.
In community meetings, we've often emphasized that we can make almost anything happen if it aligns with the majority's wishes or the board's decisions. However, there's always a cost involved. Imagine your community wants sparkling clean windows on every house annually – a fantastic idea! We'd happily gather bids from window cleaners for your consideration, but yes, it will come with a price tag and an impact on assessments.
Furthermore, the specific requirements outlined in your association’s covenants determine what the association must provide for its homeowners and the association’s monetary needs to meet those requirements. In associations where homeowners are only responsible for maintaining a stormwater pond, assessments tend to be really low compared to associations with covenants mandating landscaping services for all owners. Similarly, associations with obligations such as repairing and replacing roofs and siding as needed for every home will likely have the highest assessments. The diversity in covenant requirements directly impacts the range of services and associated costs borne by the association.
At the end of the day, Community Compass understands the importance of finding that equilibrium between community needs and financial considerations, which is why we offer various association management contract options. Some associations opt for on-site, full-service management, ideal for large communities with extensive amenities. This choice involves a dedicated on-site team but comes with a high cost due to the association creating direct employment with full benefits and purchasing its own office space, software, websites, office supplies, etc.
Community Compass, on the other hand, performs portfolio management, which consists of managing a portfolio of several associations, creating economies of scale that leads to competitive contract pricing. Many aspects of conducting the business of association management are less expensive if done in bulk. For example, association management software is often sold at a per address rate on a sliding scale, the more addresses under management, the lower the rate per home.
Community Compass offers three primary types of contracts. The Financial Services contract covers bookkeeping services, ensuring timely assessment collections and bill payments, current licensing, and basic communication handling. While it excludes site visits or covenant enforcement inspections and vendor management, associations can enhance it with a Virtual Contract. This adds to the Financial Services contract with the addition of online meeting attendance by an HOA manager or assistant, and the association selects a committee of homeowners who report violations. Virtual Contracts can also include some vendor management or an annual onsite visit from a managing agent.
Our most popular and all-encompassing option is the Full-Service Contract, covering everything offered in the Virtual Contract along with a set number of site visits per year and the potential for in-person meetings. This comprehensive package ensures communities benefit from a well-rounded management approach while maintaining their budgetary considerations.
Services found in a full-service contract include:
Association Liaison:
1. Serve as the primary contact and liaison for the Board with, but not limited to homeowners, Association vendors, legal counsel, insurance brokers/agents, all parties involved in home sales (lenders, assessors, title companies, purchasers, realtors), and CPA’s.
2. Triage and handle incoming calls and emails from homeowners, vendors, parties to real estate transactions, board members, etc. and respond to them within 3 business days. Additionally, notify Board of Association members’ concerns and responses.
3. Process incoming and outgoing mail. Incoming mail will be scanned and filed electronically.
4. 24/7 after-hours answering for emergency events.
5. Maintain corporate documents and licensing.
6. Provide required documentation per Civil Code to new homeowners during the sale of a home and handle Change of Ownership data entry.
7. Provide access to Association information to homeowners through online portals.
8. Conduct the contracted number of Association site visits to check on condition of Association and issue compliance violation notices and penalties as determined by the governing documents and Virginia law. Additional site visits will be billed at the Agents hourly rate.
Business Management:
9. Provide guidance to the Board for Governing document interpretation, compliance with VA laws, and offer expertise.
10. Assist in scheduling and attending the contracted number of Board meetings and 1 annual members' meeting yearly, conducted via video or phone conference. Meetings are scheduled for two hours each, with the option of additional time at the Managing Agent's hourly rates. Meeting preparation includes preparing Board packages, scheduling and setting up online meetings, and distributing meeting materials, with additional charges for in-person meetings.
11. Provide administrative support during meetings (check people in, hand out ballots, count ballots if vote takes place, etc.) The managing agent requests each board has a secretary to keep meeting minutes, to prevent conflicts in interest and to keep association records pure.
12. Obtain letters of engagement from CPA, distribute to the Board for signature.
13. Coordinate tax return preparation with Association CPA.
14. Ensure Corporation Filing and Annual DPOR Reporting are filed annually, and associated fees are paid.
15. Manage and ensure all required Association insurance is in force and renewed annually.
16. Serve as the primary contact for any legal issues in the community.
Vendor and Contract Management:
17. Be a liaison between Declarant, Association President, or Board of Directors and all vendors.
18. Assist Board with preparation and collection of bids for routine maintenance contracts.
19. Coordinate the preparation of final contract documentation for Board approval.
20. Review workmanship/performance of Association vendors/contractors during contracted site visits.
21. Coordinate the entire process of handling small maintenance issues in the community.
22. Update vendor files annually and provide 1099’s in January.
23. Issue work orders to proper vendors for maintenance calls.
Financial Management:
24. Prepare and mail all billing statements or coupon books to homeowners.
25. Coordinate with the bank to update systems with daily cash receipts.
26. Collect and deposit all payments made to our office.
27. Manage delinquent accounts and enforce the collection policy.
28. Review and approve all invoices submitted for payment.
29. Reconcile bank statements monthly.
30. Answer homeowner and vendor inquiries regarding assessments and receivables.
31. Provide the current account balance to title companies during the sale of homes.
32. Maintain and update bank signature cards.
33. Enter and pay all monthly bills for the homeowner’s association.
34. Make financial statements available to the Board on a monthly basis.
35. Assist the Board with preparing the annual budget for the coming year.
36. Contract with a professional Reserve Study preparer every five years or as otherwise required by Virginia law. Review the Reserve Study with the Board annually to plan capital repairs and budgeting.
37. Administer Association bank accounts, CD investments, renewals, or transfers.
38. Close out the fiscal year and update the system with a new budget annually.
All contracts come with specific conditions. For instance, our agreements grant our office a 3-business day window to respond to emails or phone calls, or to redirect them to the appropriate party for a response. Due to the nature of Association management, our staff needs to prioritize the urgency of communications each day, sometimes we are not the appropriate party to receive a certain communication, and occasionally, we may need some time for research before providing a response. Additionally, there are various reasons why we might not respond to a call or email immediately. We could be engaged in a conversation with another individual, attending a meeting, or deeply focused on a project, making it challenging to switch screens or gears until the task is completed.
You may also notice that our contracts don’t include being able to create miracles. Despite popular belief, we don’t have a special connection at any of the utility companies to make outages or service issues shorter for your community than others. We don’t have a direct line to the general legislature, mayor, city council, county board of supervisors, or any other decision or policy makers. We are ordinary citizens, just like the owners we serve, and we wait in line with everyone else.
Our contracts also don't require us to take complaints or troubleshoot community issues at the grocery store, restaurant, or other public places where we might be seen after hours. When we're off duty, we're regular, local people looking to focus on our families, loved ones, or simply grab groceries. Complaining about your association, neighbors, lawn maintenance, or any other concerns when we are outside of work is frankly just rude. We won't remember the details of these interactions by the time we return to the office, just that it happened, and it was unpleasant. If you're reminded of something important when you see us out, feel free to send an email or call the office and leave a voicemail. The same policy applies to social media – we won't respond to direct messages on our personal accounts. However, if you just want to say hello, exchange pleasantries, tell us a joke, or let us pet your dog, that's always encouraged! (We really love dogs.)
Due to our contract structure, we boast some of the most competitive rates in the local market here at Community Compass. Operating on a lean model, we have the essential employees and leverage the most current technology to meet our goals. While we may not have extensive marketing or swag, what we do have is a singular focus – managing associations is our sole commitment. Unlike some, we don't use association management as a side hustle to supplement other primary services like real estate sales, rental management, or maintenance companies.
However, as previously mentioned, if an association desires immediate responses, daily inspections, or onsite service several days a week, we can accommodate all of those things. Keep in mind, though, that the additional staffing required for these conditions will be reflected in the contract rates. We believe in transparency, offering tailored solutions to meet the unique needs of each community we serve.
