A homeowners association represents the collective interests of an entire membership. A well-crafted risk management strategy is integral to protecting everyone’s interests.
Keep Residents Engaged
Tensions can boil over when residents feel as though an HOA’s management is keeping them in the dark. HOA strategies should include efforts to foster good communication with residents. Encouraging engagement and inviting participation in planning activities can help to avoid conflicts and legal claims.
Demand Strong Managerial Support
HOAs that retain a professional property management company supervise their work closely. If an association is struggling to get problems resolved or a manager is not responsive in general, it may be prudent to establish a relationship with a new property management company.
Follow Procedural Laws
In some states, the way that condominium and homeowners associations govern their affairs is regulated by statute. It is imperative that associations follow all applicable rules about elections, meetings, and notices to their membership.
Create a Comprehensive Maintenance Plan
A homeowners association must be thorough in attending to any part of the premises that it is responsible for maintaining. Landscaping and plowing, for example, must be sufficient to mitigate potentially hazardous conditions and prevent foreseeable injuries.
An association’s day-to-day operations can involve a considerable amount of risk. It is important to have good legal representation, comprehensive insurance coverage, and excellent management to effectively counter risk.