Tips for a Smooth HOA Board Member Transfer

Are you a new HOA board member or thinking about running for a seat? Maybe you’re an experienced member getting ready to welcome a newcomer. Homeowner’s associations are rarely static for long.

Turnover is common and expected on all HOA boards. As such, it pays to prepare. New members, returning members, and departing members all have a role to play in ensuring a smooth transition.

That transition is important to your organization. For an HOA to run effectively and efficiently, avoiding mistakes when a new member joins the board is crucial. Here are some tips and hints for making sure that your HOA board transitions without a hitch.

New Board Members

If you’re newly elected to your HOA board, take the initiative to prepare for your role.

Read Up

Start by reading the CC&Rs, the Bylaws, and any relevant state and local laws. The more you know about how your HOA is regulated, the easier it is to understand other processes.

You can also read through the files of the outgoing board member and past meeting minutes. You should know what business is on the table long before you attend your first meeting.

Next on your reading list is the reserve study. If you aren’t sure what a reserve study is, check out our article, Making Sense of Your HOA Reserve Study. It’s a good place to start learning about this important document.

If you’re a visual learner, you might want to look for some books about general HOA management. Remember that every association is different, so what you read won’t apply 100% of the time.

You still have a lot of reading to do, but we’re going to make that a separate section.

Check Your Numbers

And here it is! More reading! But this time it’s balance sheets, bank statements, and budgets. Thoroughly review all your HOA’s financial documents.

The biggest responsibility of an HOA is the good faith management of the dues and fees paid by homeowners. A good working knowledge of your association’s financial status is part of your new role.

Most of you aren’t financial professionals. HOA finances are usually more complex than home finances, so don’t be hard on yourself if it’s difficult to decipher. If you don’t understand, ask questions.

Never be afraid to ask questions.

Talk It Through

The board treasurer is an excellent resource for financial questions. Ask them to help you understand the documents and how the finances are managed both day-to-day and long-term. If you are the new treasurer, don’t panic. Get help from the outgoing treasurer and other board members.

If your HOA uses a property management company, they may have training specifically for new board members. They might even offer special classes or training for incoming treasurers.

It isn’t just financial documents you need to talk through. You should get to know the other board members. You should ask questions about the responsibilities of the board and how much time they devote to HOA activities.

Familiarize yourself with the details of life as a board member. Though this is a volunteer position, legal responsibilities rest on the shoulders of board members. Understand how that impacts you in your new position.

Talk to enough people so you have a good handle on not only your role on the board but also your role within the community. Chat with people who are not on the board. Find out what they expect from board members.

Returning Board Members

The responsibility for a smooth transition does not lie only with the incoming board member. The experienced members are the ones who will handle any rough spots as a new member becomes established.

Remember that a new board member isn’t there to undermine current members. You were new once. Think back to how it feels. Offer your help without judgment. Answer questions and be willing to look at things through a new set of eyes.

Don’t automatically shoot down new ideas. But also try to help the new board member stay realistic about their role and the HOA community.

Outgoing Board Members

Yes, outgoing members should talk to their replacements. Even if they beat you in an election. Pass on the information they need, including written records such as emails and communication threads with existing vendors you have been working with.

Don’t forget to deactivate your participation in board activities. Take yourself out of group emails and sign out of any software. Pass along any log in details and introduce the new board member to any vendors who need to set them up account access to platforms or applications that the board owns.

Welcome to our Tech Talk

One of the big things a new board member needs to know is how to use any technology the board has adopted. For example, perhaps you use Homey tools for budget presentations. Make sure your new board members know how to create those reports and utilize the platform, not just understand the output. Most software companies will offer free customer support demos for new users to help get them onboarded to the technology.

Every member of the board should be able to use the technology necessary for their role. That includes online collaboration, workflow systems, budget planning tools, and even video conferencing.

Don’t assume anything. A new member might be very tech-savvy but still unfamiliar with the tools used by your HOA. Or they may be reluctant tech users. Meet new members where they are and be patient as they learn.

If you’re a new board member with lots of tech experience, that’s great! You can help the other members of the board if they struggle. If you think the board needs to upgrade its tools, be respectful. Find out what they use and why. Propose changes tactfully.

R-E-S-P-E-C-T

An HOA board is like any other team or committee. There are a lot of personalities to balance. Everyone brings something different to the table. Whether you’re a new member, a returning member, or an outgoing member, you play a role in smooth transitions.

Transitions are rocky for a lot of reasons. The single most effective way to make them smooth is to commit to your community. Contact Homey today for financial management tools that will help your board stay focused and informed.