Being a volunteer board member comes with many responsibilities – but it doesn’t mean you need to act alone. Beyond your fellow directors, you have an entire team who can help your board understand complex issues, make well-informed financial decisions and create policies that have a positive impact on your community.
Alyson Theale, vice president for FirstService Residential, said, ““Board members represent a variety of backgrounds and careers, from business and healthcare to education and law enforcement. And the way they solve issues in their career or home life doesn’t always translate to managing an association. There are processes, complex rules to follow, and key players to include in decision making. The good news is – that’s where your professional partners and subject matter experts come into play.” Which association partners should you look to for this guidance? Read on to see a list of nine professionals to consider.
Nine association partners Georgia homeowners and condominium association should have
1. Georgia association attorney
Every homeowners and condominium association should have an attorney on their team. An attorney who is well versed in association law understands the nuances of operating as a non-profit organization. Beyond that, having a Georgia association attorney means they can help you follow and understand state and local laws. Your association lawyer can help mitigate liability, provide expertise when it comes to policy creation and enforcement, handle collections, and offer support on a number of legal issues.
2. CPA
As a nonprofit organization, your association’s financials can be daunting. A certified public accountant (CPA) conducts an independent review or audit to confirm the accuracy of your financials. They’ll help you determine what expenses are exempt versus non-exempt and recommend the correct tax forms to file. Some states require an independent annual review or audit of the association’s financial statements. Your management company can help you streamline the audit by helping compile and prepare financial documents for a third-party CPA to review.
3. Management company
Having a reliable professional management partner can make a world of difference when it comes to running a successful association. You can lean on them to consult with your board, communicate with residents, manage monthly financials, and enforce community policies. Your board should not be tasked to manage the day-to-day administrative work – that’s the role of your management company. For help in choosing the right management partner for your association, download a helpful infographic here.
Operating as a self-managed association? Jake Howse, director for FirstService Residential, said, “You should weigh the pros and cons when choosing to forego a professional management company. With uncertainties like changing legislation, inflation, and fluctuating insurance and operating costs, it’s great to have a management partner you can rely on for their expertise and assistance with running your community.” Read an article here to learn about a luxury high-rise that moved from self-managed to partnering with a management company.
4. Reserve study firm
Working with an accredited reserve study firm plays a key role in maintaining your community’s assets and financial health. A reserve study involves both a financial and physical analysis to determine which repairs and replacements will be needed and when, as well as the estimated costs needed to fund those projects. Reserve study requirements vary according to state; check with your management company and association lawyer to ensure you’re following local requirements and best practices. Read our article here to get helpful tips on selecting a great reserve study firm.
5. Insurance specialist
Unstable insurance costs have become a major challenge for associations. That’s why it’s crucial to work with an insurance specialist in condo and homeowners associations, as they are often able to evaluate your coverage levels to meet your needs. For example, FirstService Residential-managed properties have the option to leverage FS Insurance Brokers, which offers unique programs and proprietary insurance offerings that can help reduce costs and enhance coverage levels. Typically, FS Insurance Brokers, with their 30+ broker partners, can deliver 5-10% long-term premium savings and loss ratios 25% below market average.
6. Cash management and lending consultant
Healthy financials don’t happen overnight, which is why you may want to partner with a financial partner who specializes in condo and homeowners associations. They can help guide you in making wise decisions that protect your operating budget and ensure you can fund valuable improvements and repairs. FirstService Financial offers various cash management and lending solutions exclusively to communities managed by FirstService Residential. Associations are able to take advantage of strategic partnerships, including access to over 20 lending partners that offer reduced interest rates on loans, yielding 0.3% to 0.5% in savings. FirstService Financial also partners with more than 35 banking partners that provide three times the national average in terms of interest on deposits.
7. HR and staffing team
Understanding the nuances of hiring staff, managing employees, and administering benefits is key to a healthy association. However, this is not always the expertise of association board members. If not handled correctly, it can even land you in hot water and expose you and your association to potential liability. To ensure you’re covering all bases, consider partnering with a management company that can correctly staff your association and has an HR team that handles matters relating to the staff, so the board does not have to.
Danny Ellis, president for FirstService Residential, said, “People are the lifeblood of any association, so it’s crucial to have an HR team on your side who can help you recruit new hires, support existing employees and follow legal requirements every step of the way.”
8. Engineering consultant
An engineering consultant is an indispensable member of your association team. They provide detailed guidance on capital improvements and preventive maintenance to keep your community in excellent shape. Having an engineer on call can help ensure you fully understand your condominium or community needs (and prevent significant and costly repairs down the road). Many association management companies have an individual on staff who can perform visual inspections and let you know when it’s time to reach out to your engineer.
9. Restoration company
If your condominium or community has a clubhouse or shared structures, you may want to consider partnering with a restoration company. After a storm, fire, or flooding incident occurs, a restoration firm can help inspect, clean and restore areas that have been damaged by water or fire with specialty equipment and expertise. For example, First Onsite offers full-service disaster recovery and property restoration through various services, including asbestos abatement, mold removal, hurricane damage restoration and more. After selecting a restoration company, you may want to consider entering into a master service agreement (MSA), so that your community is prioritized in the event of a storm or other disaster.
Your association’s success is a group effort
If managing a successful association seems overwhelming at times, you’re not alone. But the good news is you definitely aren’t alone when it comes to your community. By partnering with great professionals, including your HOA attorney, management company and engineer, your association is in good hands. Start with the 9 specialists mentioned above and work with your management company to get additional guidance on choosing the right partners. To learn more, contact FirstService Residential today.