Home Owner's Associations and Management Companies

The relationship between Home Owner's Associations and the Management Companies that they work with is a strong partnership. The Management Company assists the HOA in collecting dues, caring for the common areas and scheduling maintenance. The Maintenance Company may also take care of violations to the CC&Rs and assist the HOA in arbitration matters.

The responsibilities of the Management Company vary but ultimately the responsibility that they have is to add structure, continuity and support to the volunteers that make up the HOA board. Since residents come and go, and not all can participate at that level, or all the time, the management company is able to be the backbone and manage the sometimes less desirable tasks such as informing residents that they have violated an regulation and that they will be fined. It also allows the neighbors to continue to be "neighborly" when an HOA dispute comes up.

At Kuester we believe that it is our job as the HOA Management Company to follow the lead of the HOA but also to give guidance and support when needed. It is our responsibility to assist the homeowners and provide them with the best that their neighborhood has to offer. We manage HOAs all over the Carolinas, big and small and we look forward to the opportunity to serve you.

Kuester Property Management

HOA Management Carolinas

HOA Rules

Home Owners Association rules are created for the best interest of the community and vary from HOA to HOA. Failure to follow these rules can result in serious fines or legal action, so it is not to be taken lightly.

Before you plan to purchase a house in an HOA community, be sure to read through the rules and guidelines (CC&R) thoroughly. If you have an opportunity, have a chat with the neighbors regarding their experience living in the development abiding by these rules. Although some of the rules are pretty standard, different HOAs will have their own set of unique guidelines pertaining to their community and their specific common areas and "personality."

If you have never lived in an HOA community before, you might find that some of the policies are rather restricting, or even bizarre, (I remember reading through mine the first time and seeing that the HOA specifically restricted swine from residing in the homes... which made me think that at some point, someone HAD to have had a pig in the neighborhood that had caused a bit of a ruckus!)

The usual HOA guidelines include what kind of maintenance to the common will be done including the landscapes, swimming pools and play areas, and the courts or courses if they apply.

Garbage removal may be included in the HOA fees, or may not, but there will likely be a policy about keeping your trash cans out for a limited amount of time, and where they can be stored. (Garbage tends to be a big deal with neighbors). You may also be restricted to where you can park and for how long, and how late an loudly you can party outside the house.

Most of the common place regulations involve general discipline in the daily activities like throwing out garbage, mowing the lawn, keeping the premises clean, and maintaining low noise level so that one will not get the feel of living in a college apartment. This is for the general happiness and well-being of all, despite the occasional inconvenience to the individual.

Attendance at the regular HOA meetings, will give you a feel for not only why the rules are in place, but also for how to change rules too. HOAs will welcome participation from the residents and on the committees and if there is a policy you are not happy with, as a member of the community, you have the opportunity to try to get it changed!

If you have any questions about the HOAs in the Charlotte area, please give us a call at 888.600.5044.

Kuester Property Management
HOA Community Management

Why Live in an HOA Community?

I have heard it before... "Why would I want to live in an HOA Community?"

Well, here is the truth... it is not for everyone! Some people like the freedom of not having to abide by a set of rules governed by a neighborhood board -- and there is nothing wrong with that. But for others, an HOA offers security, value, organization, and support that they do want and need.

Ultimately, the purpose of a Homeowners Association is to protect the value of homes and neighborhoods within a development. This is done by maintaining common areas and holding the residents accountable for following the rules of the Association. The Association has the right to enforce maintenance and design standards like the color houses are painted and where vehicles can be parked. The point of these rules is to keep people from doing things like park cars on blocks in their front yards, or paint their front doors in polka-dots... or keep a pen of pigs in the side yard... or decide to put in a moat! Some people find this restricting, and others feel secure that a set of policies are always followed the same way by everyone!

If you are considering a home in an HOA community, you should read through the policies and ask your questions upfront so there won't be any surprises later on. But most people do find that a community with an HOA will offer more amenities and structure -- and that can be a very good thing!

HOA Community Manager
Charlotte, NC

Pros and Cons of an HOA

There is a lot a debate about the pros and cons of an HOA and a lot of it just comes down to a personal choice. Here are some "Pros and Cons" -- however, as with everything, a "pro" for you could be a "con" for someone else!

Below are five ways that an HOA is seen as a positive:

1) The HOA is beneficial to the community and maintains and pays for the upkeep of common areas, including ponds, swimming pools, tennis courts, play grounds, golf courses and club houses. It could be said that without an HOA you may not be able to have these amenities in your neighborhood.

2) Some HOAs provide services such as driveway snow removal or lawn maintenance for each residence. Perfect for busy families or retirees -- and it ensures a uniform and well-kept look throughout the neighborhood.

3) An HOA will have a mechanism to mediates disputes and quickly resolve grievances between residents.

4) An HOA will help property values to stay high by regulating the things that help keep a neighborhood looking good, (keeping garage doors closed, no cars left in driveways over night or on the street, no signs in yards, holiday decorations only left up for a month, etc.)

5) An HOA may plan annual parties, family nights, pool parties, neighborhood clean-up days, etc.

Below are five ways that an HOA may be seen as a negative:

1) Some people don't like being restricted by neighborhood rules, such as how high your grass can get before it is mowed or how many pets you can have.

2) HOAs will often have regulations about renting out the property, and may need to approve the renters.

3) Neighborhood Association dues that help maintain the common area and which go to the special events add an additional expense to home ownership.

4) If you do not pay your dues on time, an HOA can put a lien on your home or force a foreclosure on your property.

5) Some HOAs are poorly managed and a lot of times the board has a lot of turn-over. This is in part because board members tend to be volunteers with a paying day jobs and busy families. (This is why many HOAs turn to a professional HOA management company to help set and guide the rules).

In the end, your decision to move into an HOA community is one that you need to carefully consider - and each HOA is different! Be sure to read the covenants of any HOA you are considering and if you do choose an HOA community, you will always be happier with the results if you stay involved. HOAs are about and for the residents!

Kuester Property Management

HOA Management Company

Charlotte, North Carolina

Making Money in Commercial Real Estate

Have you ever thought about owning commercial income property? One of the most consistent and reliable ways that investors have been making money, for hundreds, maybe a thousand years, has been in the buying and renting and selling of property.

That said, plenty of money has been lost in the same. So what is the difference between the investors that make it, and the ones that don't?

First, savvy investors do not over extend themselves. The smart investor will make sure that they spend what they can afford--even if there is a market downturn, or a natural disaster, or a major expense. Too many people who buy property buy more than they can afford, and then run into problems. In fact that is the simple explanation for our current economic woes!

Next, savvy investors choose the right property or properties. "Location, location, location!" and don't forget it. A high end boutique will not thrive on the back of a country road next to the chicken farm. An ice-cream shop will not survive if it is the only shop on a busy highway. You have to decide what kind of investment property will best suit you and your area, and what area will best suit the kind of investment property you want. Do not skimp on the research here! Take your time, be observant and make smart choices.

Finally management of the property will make or break your investment. Choosing the right property manager who can successfully market your property, and who can screen tenants, handle upkeep, etc. is give you the best chance at a positive ROI. Property managers and property management companies have different areas of expertise and specialty, and you should look for one that has worked with similar types of businesses in your area and has a positive track record.

If you would like more information on property management or investment properties in the Carolinas, please check out our website at www.kuester.com.

Is Now A Good Time To Buy Residential Income Property?

Buying residential income property (from duplexes to apartment buildings and large complexes) has traditionally been a good idea for investment purposes. Many savvy investors have chosen this route to invest their money and it has paid off.

Despite the fact that the real estate industry as a whole is also feeling the strain of the mortgage crisis, now may be the right time for you to consider your entree into investment property, or even expanding your current portfolio. Just like home values, apartment buildings and complexes have also dropped in price, and that means there are some great deals to be had for the right investor.

With so many people falling victim to homes foreclosures, there has been--and will soon be more of an influx of people who need a place to rent, and still have a decent income. These people will need to be carefully screened, and their credit may be hurt, but they may make very good tenants still. Be sure to vet these people fairly, taking into account that they many have filed bankruptcy, (wiping out most of their unpaid debt), which would give them the ability to pay rent and start over rebuilding their credit. These people may be not your typical renters and a good tenant screening process will pay off here!

As you know - there are risks with any investment, and buying rental properties is no different. However, there are still good reasons to take that risk. With a well managed property purchased conservatively, rental income will help pay the monthly mortgage on the property, and temporary short-falls due to maintenance or occupancy, can be make up with good management. Property investment is not for the weak of heart, but it can, and has produced positive results time and time again.

A word of caution: It is important that you do not get caught in the same situation that caused the real estate crisis we are in. Too many people purchased properties that had over-inflated values. Be sure to carefully research any property you consider including the property value, the location, and the comps, and make a significant downpayment so that you can guard against a month or two of lower income from your unit(s) should this happen. Remember to insure against the risks.

So, now really is a great time to buy -- but you have to make sure you get the best property for you. Do not over-extend yourself, make a significant downpayment, and choose a property that will pay off, (does not need major repairs, is in a desirable location, etc.)

If you need assistance finding a great residential investment property in the Carolinas, or have any questions of property investment of property management, please go to our website at http://www.kuester.com.

Is Now a Good Time to Buy Commercial Property?

Did you know that RIGHT NOW is one of the best times to purchase Commercial Real Estate in decades!

"But the economy..." you say. Well, yes, EXACTLY! Because of the bad economic conditions and the very unfortunate real estate situation, it is a "buyers market" for both residential and commercial property. Now is the time to pick up a great deal if you are willing and able. But this means that you have to have really good credit and probably cash on hand.

There are a many things to consider if a commercial real estate purchase is in your future, including the best type of property, the location and how to finance it. The option for a" Financing Purchase Transaction" should be looked at especially. Financing purchase transactions for owner occupant (meaning for your business) type loan requests may be a possibility for you, and may be a better option than other types of commercial mortgages since they are hard to qualify for currently. You may want to consider this option over other commercial mortgage programs, such a conventional and investor.

Need more convincing? We are currently at historic lows with property values, having dropped 30 -40% in the last 3 years. Historically, after a down cycle, property values came back up rapidly after the banking industry stabilizes and we are almost at that point. Do not miss out on a great opportunity.

Many business owners will be remiss in a few years that they did not take advantage of one this moment in time -- one of the best to purchase commercial real estate since the Great Depression.

If you are interested in purchasing commercial investment property in the Carolinas, check out our website at www.kuester.com.

What kind of training does a property manager need?

If you are considering a career in property management, you should know that your career can go in a couple of different directions, depending on where and what kind of properties you manage. Property management is an exciting and challenging industry and you will do well if you can be organized, stay on top of current laws and regulations, and maintain a strong network in your community.

If you are interested in becoming a property manager, you should first look for training in property management that suits the specific field in which you are interested in working. For example, most apartment communities utilize a property manager to interview prospective tenants, collect rent and oversee maintenance needs. You should focus your education on business, negotiation skills, communication and finance.

Commercial property managers, while performing many of the same duties as apartment property managers, may also be involved in negotiating contracts and handling leasing arrangements. A strong understanding of contract laws and the specific regulations that govern your town and state will be required.

You can receive certification from The National Property Management Association, and take certificate training programs that can provide you with a professional designation, and credibility as you look for open positions in property management. A certificate shows employers that you've received training in asset management, tenant communication and contracts.

If you would like to take your education further, you can receive a bachelor's or master's degree in residential property management. The curriculum includes courses in interior design, marketing and leasing, management, accounting and real estate law. During the course of study, you will take the certified apartment manager certification exam.

It is important that you consider membership in associations in your community. In addition to networking opportunities that have the potential to advance your career, you can find a number of continuing training opportunities. Look for groups such as the American Apartment Owners Association and the Property Management Association.

Property management careers can be exciting and rewarding for people who like to work with a variety of people, solve problems and be a valuable resource. If you are interested in careers in property management in the Carolinas, please check out the Kuester Contact page.

What is a Property Manager?

We have talked a lot about the duties and responsibilities of a property managers, and what you can expect from a property manager as the property owner. Fact is, that what you can expect from a property manager varies on the manager and the company for whom they work. At Kuester we have high standards and hope that we meet and exceed the expectation of our customer. That said, there are a few things that should be universal, regardless of which property manager you have contracted.

A property manager is the legal representative of the landlord or property owner and is responsible for the day to day operations of a property, which varies depending on the type pf property. All different types of properties can benefit from a property manager, since they can manage the tenants residing there or the businesses doing business on the property.

Property managers are in charge of single unit rental homes, multi-unit and apartment units, and commercial office and retail developments, and is responsible for maintaining the property grounds and the building itself, including the repairs of the common areas and sometimes the tenant space as well.

In addition to the day-to-day upkeep and emergency situations or a particular property, the property manager can also handle the business and financial end of their rental business. Project managers find prospective tenants, collect rent, and take rental applications, and will manage vendors and contractors and through short and long-term projects.

The property manager is the liason between the ownership of the property and those using it - and will run the property and the investment thereof efficient and effectively.

Kuester Property Management manages a variety of properties including multi-unit residential and commercial properties in North and South Carolina. If you would like to learn more, go to www.kuester.com

How to Find A Good Investment Property

There are a lot of properties out there right now, and if you have the opportunity to purchase a great investment, now is a wonderful time to buy.

However, if you really want to get the best deal on investment properties, you have to increase your odds of finding the best one--one that will be a money maker! Do you really want that GREAT investment property? Then you are going to have to be vigilant—check your resources and keep your eyes and ears open! Looking through the MLS listings is not enough any more. Here are ten ways you can increase your chances of getting the best deals:

1. Tell people what you are looking for. Let the right people know what you are looking for and let them help you find the properties. There are a lot of owners out there who want to sell, but haven't yet listed their property -- and they may mention it to friends or families. You could catch one of these great deals ahead of time!

2. Go online. Go to a search engine and enter the type of real estate you are looking for, in the appropriate city. Sometimes you can get a good opportunity here -- and other times not, but this is a great place for a first step.

3. FSBO sometimes pays off. Drive around looking for "For Sale By Owner" signs. Owners often don't want to pay to keep the ad in the paper every week, so you won't see all properties there. A FSBO sign might mean a great price for you, and a seller who will be eager to sell.

4. Look for abandoned properties. An abandoned property means that the owner doesn't want to deal with the property, or can't for whatever reason, and may sell cheap.

5. Look at "For Rent" ads. Save newspapers or look at old craigslist ads that are a few weeks old. If the rental unit was not rented, the landlord might be ready to sell.

6. Bankers are great friends! Bankers are in the know and you might get a lead on a foreclosed-on investment property, and get it cheaper if you buy it before it's listed with a real estate agent.

7. Pay for leads. There are people that always seem to hear about the good deals - so offer them a finding fee!

8. Take advantage of eviction notices. Many local papers publish eviction notices,and sometime this information isinformation at the courthouse. A landlord who just went through evicting tenants may be ready to sell.

9. Advertise. Place your own "Looking for investment properties to buy," ad on Craigslist, or on a sign, or the newspaper.

10. Call Kuester! (888.600.5044). We will work with you to find the perfect property for you!

Investment Property Lingo

If you are considering an investment in property, you will need to know the know the lingo!

Familiarize yourself with the industry terms such as:

Gross Income - Total income before taking out taxes and expenses

Vacancy Rate - Percentage of rental units unoccupied

Effective Gross Income (EGI) - potential Gross Income less a vacancy and collection allowance, plus miscellaneous income.

Operating Expenses - Ongoing cost for running a business.

Net Operating Income (NOI) - Operating income after operating expenses are deducted, but before income taxesand interest are deducted.

Debt Service - The ratio of cash available for debt servicing to interest, principal and lease payments.

Cash Flow - The movement of cash into or out of your business.

Cash-on-Cash Return - The ratio of annual before-tax cash flow to the total amount of cash invested, expressed as a percentage.

Capitalization Rate (Cap Rate) - The ratio between the net operating income produced by an asset and its capital cost or Marketing Value.

With the understanding of investment vocabulary you will be able to make better decisions and turn your dream of investing in commercial property, a reality. Take the time to do the research and consult with the experts before making any major financial investment!

What Do You Need to Know When Investing in Commercial Property?

The commercial investment property sector in the Carolinas is looking strong in the coming year and we predict it will make a near-to-full recovery throughout the year. Expect positive growth in rent and capital values, which will support your investment, and allow you to recoup some costs from the last few dismal years.

This is great news for many commercial property investors and owners like yourself. For those looking at making a start in commercial property, or who are interested in buying an additional investment property, there are some things you need to remember about making an investment in this economy. The industry is vulnerable to a number of fluctuations and does not always follow the trends of the rest of the market--so it is important to understand how!

Design: Codes and Trends- Commercial office space and industrial property responds more strongly to changes in building design trends. Compliance and standards can also add to the costs of maintenance of commercial property which can affect your profit margin. Make an effort to keep

Location, Location, Location- if the prime industrial district shifts, or the other commercial properties around yours close, this could drastically change the capital value of your prospect and your potential rental return of your investment.

Buy With the Intent to Sell- commercial property can be harder to sell in tough markets than other investments. In a tight market, where it is a buyer's market, remember that whatever you buy, will at some point need to be sold. So a good deal needs to be a money-maker - each and every time.

Risk- As with any investment, there is risk involved in commercial real estate. Investing means you are taking on all of the risk associated with the ownership of the property, and will be responsible for any maintenance costs and upgrades that need to be made. You need to be willing and able to accept the risks -- take full responsibility and ownership and

The most important thing to remember, is that if you are interested in making a sound commercial property investment. Make smart choices and have a diverse portfolio! Real estate helps to offset shorter term investments and a good balance of residential and commercial are the often the most practical.

If you would like more information on commercial property investment in the Carolinas, give Kuester a call at 888.600.5044.

Happy Holidays from Kuester Property Management

Every week or so we post something on this blog, give you tips on commercial property management, investing, and HOAs. Hopefully, you find the information useful!

In our real lives we are property managers at Kuester in Charlotte. We have locations across the Carolinas, in Boone, Myrtle Beach, Concord, Wilmington, and Fort Mill. We help people find residential and commercial properties to buy, sell, or lease and manage home owners associations. This is a very rewarding job and our company has grown to the point where we now have large team of specialized and very highly trained professionals covering all aspects of property management.

We are quite lucky to be able to say that we are currently celebrating a very successful year. We moved into a new building, we redesigned our website and we have a lot of great relationships with our customers and vendors.

At this time of year, we would like to thank YOU... thank you for reading our blog, thank you for your interest in property management. Thank you for being our partners and our customers. It is because of you that we are able to provide you the high quality of property services that have been our business mission and our family's dream for over 30 years.

Kuester Property Management is here for you. Thank you for being a part of our growth and success and we wish you the happiest of holiday seasons.

Holiday Decorations and Home Owner's Associations

'Tis the season right? The season for braving the cold weather and putting up those holiday decorations!

It is great to see families take pride in their holiday lights, and neighbors in friendly competition to out-do each other. But it is important this time of year to follow a couple tips when decorating, for safety, and also for the sake of the community.

First, before you get those strands of light ready, review your HOA policies. Some neighborhoods have rules on how early you can decorate, as well as how long the lights can stay up. Generally, these rules are reasonable and are meant to discourage people from putting up lights on Labor day and leaving them up through Valentine's day. However, it is good to know what the date ranges are, so that you don't incur a notice or a fine.

Some neighborhoods also try to coordinate "like" decorating - for aesthetic reasons, or to compete with other neighborhoods in the area. So before you put up your multi-color twinkly lights and hugh blow-up snow-globe, make sure your neighbors haven't decided that this is the "cool-blue" year.

Lastly, remember safety! There are plenty of new products on the market that make putting up lights safer than in the old days of climbing on the roof with a bunch of nails! Take advantage of the special clips and the extension pole when possible, and always put up lights with a partner. It will do no good to be in a leg cast over the holidays, but if something does happen, you will want someone to be able to help. Also, use special out-door lights, and don't over-load your electrical outlets. House fires are all too common during the holidays, so be careful, be smart, and light up your house... like.... a Christmas tree!

Property Manager - Charlotte - Kuester Property Manager

Home Owner's Associations

I was sitting in a coffee shop the other day, and started talking to the guy sitting in the seat next to me. He was a nice guy, worked for a local auto repair shop as the manager and through the course of the conversation, we realized that we lived in the same neighborhood.

He announced he was planning on leaving the neighborhood as soon as he could sell his home - told me he was so frustrated with the neighborhood association that it made him want to move into an area without an HOA.

Now, I did not tell him what I did - that I work for a property management company that handles HOAs.... (although ironically, not the one in our neighborhood). But I did ask him a few questions, because I was curious. Personally, I have never felt the HOA was particularly heavy-handed or unfair, and professionally I know that all HOAs are made up of the residents of a neighborhood, and all rules, policies, meetings and events that an HOA oversees can be changed with a vote--a vote of the neighbors!

So I asked him if he had ever been to an HOA meeting... NO. I asked him if he ever volunteered for a committee...NO. I asked him what specifically he did not like, and he told me it was the policy on what you could and could not build on the property. Specifically, he wanted to put a 2-story out-building/second garage on his back yard.

And I smiled. I live in his neighborhood and I would not want someone to build a second garage in their yard! Our properties average a quarter acre at best, and the amount of space that would take up would be huge. It would, in fact be an eye-sore, may even bring the property values around that house down.

We might all love extra space for our tools and our cars. We might all love to have a "guest bedroom" built. But in this particular case, it was not appropriate for the neighborhood and the covenants for our HOA were actually protecting us from everyone building over-sized sheds, or extra buildings on a small property.

This gentlemen and I won't agree, and he also won't join the architectural review committee either and volunteer his time to make a change he is interested in, or take the initiative to find out why his dream of a second garage is something that just doesn't fit into the neighborhood standards.

I am sure that he would not like it if his next-door neighbor painted their home barbie-pink and decided to put a moat in either!

HOAs are a good thing. But they are not for everyone. If you are a free spirit who likes to have full control over your property, and doesn't feel that you should be concerned with the "bigger picture" of how that affects the neighbors around you, there are plenty of homes and properties available. If you want the security and camaraderie, amenities and continuity that a neighborhood offers, than an HOA may be for you.

And remember... if you can and if you care, get involved! HOAs do not run on their own.

Kuester Property Manager

Charlotte, NC

What does a Property Management Company Do?

Property Management companies have the responsibility of dealing with prospective and current tenants. If you have a rental property, you will need to market it, screen the new tenants, collect rent handle maintenance and repairs, respond to compliants and take care of evictions. A good property management company can do all of this and save you time, money and all of the frustration that comes along with managing tenant relations.

Hiring a property manager has many benefits, but it can also be expensive, and that is why so many people choose not to do it. However, in many cases, working with a property manager or property management company should be considered more of an investment than an expense!

If you don’t live near the property, management can be invaluable, if not necessary, for many issues that will arise. Also Property Managers often have the experience to find the "best" tenants, the resources to market your property in ways that you cannot, the ability to collect rent in an effective manner, and the local contacts with maintenance and repair contractors that can actually end up saving you money!

And if that doesn't sell you...remember that one wants to receive late night calls about stopped up plumbing, or manage the crisis situation of an unexpected ice storm!

Fee structures vary, however, generally, Property Managers receive 5%-10% of the collected monthly rent for the management of the property. There is also a charge of equal to 1/2 of the monthly rental amount for procurring a new lease as a "bonus", which is sometimes paid at the end of the year depending on the type of property and the property management company.

In the end, a Property Manager should save you time and plenty of work--if not money too!

Charlotte Property Manager

Kuester Property Management

Congratulations Kuester Managers of Distinction

The 2010 North Carolina Chapter CAI Event recognizes Kuester Managers for there hard work and dedication to the industry.

Holly Biddle, CMCA, onsite manager for Moss Creek Village Homeowners Association and Townhomes receives "Rookie Manager of the Year". Holly has accomplished several major projects for Moss Creek, one of which was deeding over a mile of common areas to the Concord Greenway Project.

Nickki Couick, CMCA, AMS, receives a Gold Star for chairing the 2010 Fall Resource Guide Committee. Nickki was responsible for assembling the 2010 Fall Conference Resource Guide which consisted of presentations from speakers, listing of volunteers and sponsors of the event.

Is It Still a Good Time to Invest? YES

If you are like many Americans, you have been watching the markets with concern, but if you are among the lucky few who have been riding this storm, who have been hanging on, and maybe have a little bit of investment capital left, now might be a great opportunity to jump into the investment real estate business.

Kuester has many available properties in the Carolinas for you to choose from. Now is a great time to buy - it is a strong buyers market with many commercial properties currently selling below their appraised value.

If you are a serious investor willing to do what it takes to find the right property, and work with the right people, please give Kuester Property Management a call at 888.600.5044

Why Join an HOA?

More and more home buyers in the Carolinas are choosing to live in HOA communities. Why? Well, first of all, more new homes are being built in neighborhoods -- and neighborhoods generally have a builder who sets up the HOA as the homes are being completed. It makes sense that houses and families in close proximity would need to have a set of rules to follow for the overall happiness and continuity.

..And that is generally the point. People who live in the close proximity of neighborhoods like to have a set of rules that they know that their neighbors are following. Not everyone would be keen on their neighbors building a shed in there front yard. Not everyone would appreciate the artistic flair of painting a home in giant polka-dots. HOAs set the ground rules and policies that the everyone has to follow.

HOAs provide the structure through the CC&Rs -- and when you are looking to buy a home, it is your responsibility to know what the Covenants, Conditions and Restrictions are --and if they are something that you wish to live within.

For so many the answer has been "yes" because this kind of "rule of law" helps us all be good neighbors, and give us recourse when someone is not.

Charlotte Property Manager.

Shopping for a New HOA Property Manager?

Are you shopping for a new HOA Property Management Company? Unfortunately, it is not uncommon for a Property Management Company not to meet the needs of the board and residents it serves. Sometimes the neighborhood is just too big, sometimes it is because the company over-promised--but we get a lot of new business from established neighborhoods that are just plain unhappy with the company with which they had contracted.

One of the best things that you can do if you are in the market for a new HOA Management Company is to create a complete list of "needs and wants." The Board of Directors for the HOA may do this, or a subcommittee may be created, but it is important to know what it is you are looking for and be able to articulate this to the prospective companies that present their proposals.

A lot of HOAs are cost-sensitive. And if this is the case, you should consider what you "need" the management company to do vs. what you would like them to do. It would be better to have better quality service from a reputable, experienced company which did not do everything... than a company which did everything poorly!

When interviewing the Property Management Companies, ask them how they would have handled the situations for which brought you to the decision to look for a new company! This will give you an idea of the creativity and ability of the companies AND give you an idea of how reasonable your expectations are. Your requests may be easily met--or there may be a challenge for which you had not considered. Finding the right HOA Management company is really about a partnership, and they are just as responsible for telling you what is not possible as you are for asking for what is.

Like with much else, communication is the key. Ask for what you want, listen to what can be done, and set the expectations so that everyone is on board and your next HOA Management company can be the permanent management company.