Why Self Managed HOA Software is the NextGen’s New Bestie

Hey there, future homeowner! If you’re diving into the world of homeownership, you’re probably encountering a lot of new terms and concepts. Escrow, due diligence, and closing costs — oh my! One term that might also pop up frequently is “HOA dues.” Understanding these dues and their importance can make your home-buying journey smoother. Plus, you might even end up purchasing a home within a community that utilizes HOA Management Software, which means you’ll use that platform almost as much as you use Instagram (ALMOST). So, let’s break dues and self managed HOA software down in a way that’s easy to digest and get you the DL on everything HOA.

What Are HOA Dues Anyway?

HOA, or Homeowners Association, dues are fees you, as a homeowner, pay to your community’s HOA. These dues are essential for maintaining and improving your neighborhood. Here’s a quick rundown of what your dues typically cover:

• Neighborhood Utilities: Think money for common area lighting, water for landscaping, and other shared utilities.
• Maintenance and Repairs: Regular upkeep of common areas, including landscaping, irrigation, and parking lot maintenance.
• Recreation Areas: Maintenance of amenities like pools, playgrounds, and clubhouses.
• Insurance: Covers liability and property insurance for common areas.
• Reserve Funds: Money for large future expenses, like roof replacements or repaving roads.
• Self Managed HOA Software: Tools to help manage the HOA efficiently, which is especially important for self-managed HOAs.

With everyone in the neighborhood kicking in their fair share each month, HOA dues ensure that your community remains a great place to live.

OK, Got It. What Are HOA Fees Then?

While “dues” and “fees” are sometimes used interchangeably, they usually refer to different things. Like your monthly Spotify bill, dues are regular payments for the general upkeep of the community. On the other hand, fees are often fines or penalties for specific violations of the HOA rules. Here are some common reasons you might incur HOA fees:

• Yard or Sidewalk Maintenance: Not keeping your lawn mowed or sidewalks clear
• Trash Removal Violations: Not adhering to the trash pickup schedule or rules
• Parking Violations: Parking in restricted areas or not following community parking guidelines
• Noise Ordinances: Excessive noise that disrupts the peace of the neighborhood.
• Signage or Flag Rules: Violating rules about outdoor signage or flags

It’s important to familiarize yourself with your HOA’s rules to avoid these fees. A good rule of thumb? Know the rules before you buy your home. You don’t want to get into a sticky situation or end up going viral on YouTube.

Do I Have to Pay HOA Dues and Fees?

The short answer is yes. When you purchase a home in an HOA community, you’re usually required to sign a contract agreeing to pay these dues. Here’s why it’s important:

• Dues: These are non-negotiable. If you don’t pay your dues, the HOA can send your account to a collection agency, place a lien on your home, and even foreclose on that lien. Not paying can severely impact your ability to sell your home and lead to foreclosure.
• Fees: While you might be able to negotiate fees for minor violations, especially if it’s your first offense, repeat violations are less likely to be forgiven. Remember, you’re living in a community, not on an island. Building goodwill with your neighbors (who are often on the board) is beneficial.

How Do I Use Self Managed HOA Software to Pay My Dues?

Gone are the days of manually having to pay your HOA dues. People used to have to send in paper checks and cash payments or deal with setting up bank transfers. Thank goodness for #technology. In many self-managed HOAs, the board of directors utilizes self managed HOA software like PayHOA to deal with the dollars and cents. These platforms offer convenient features such as automatic payments to help ensure you don’t fall behind:

• Automatic Payments: Set up autopay to automatically deduct your dues from your account, ensuring you never miss a payment.
• Manual Payments: If you prefer manual payments, you can usually pay online through the HOA software, by mail, or in person.
• Automated Reminders: Notifications for upcoming payments and due dates.
• Financial Tracking: Clear records of your payments and any outstanding dues or fees.
• Mobile Payments: Conveniently pay dues and fees directly from your smartphones.

Contact your HOA board immediately to discuss your options if you miss a payment. They might be able to work with you to set up a payment plan. Setting up autopay as soon as possible can help avoid this issue in the future.

The Benefits of an HOA

74 million Americans live within an HOA-managed community, and about 84% of newly built, single-family homes sold in 2022 belonged to homeowners associations (thanks, Census Bureau). Clearly, living in an HOA community has its perks. Here are some benefits you might enjoy:

• Clean Neighborhoods: Regular maintenance and community standards help keep the area looking nice.
• Community Amenities: Access to shared facilities like pools, parks, and clubhouses.
• Increased Property Values: Well-maintained communities often see higher property values.
• Sense of Community: Being part of a managed community fosters a sense of belonging and security.

However, a self-managed HOA with a software platform like PayHOA can take these benefits to the next level by reducing the administrative burden on board members and ensuring transparency and efficiency in operations.

Who’s Ready to Volunteer?

If you end up purchasing a home within a self-managed HOA community, you can raise your hand for some pro-bono help. Because these neighborhoods are self-managed, they need selves like you to step up to the plate and take on a little extra to ensure the community runs smoothly. With platforms like PayHOA, you don’t need any experience in accounting. It’s a rewarding way to give back — and get lots in return:

Influence Community Decisions

Volunteering for your HOA gives you a direct voice in shaping community policies and budget allocations. You can help prioritize repairs, improvements, and other projects that matter most to you and your neighbors, ensuring your community develops in a way that benefits everyone.

Build Community Relationships

Getting involved with your HOA is a great way to meet your neighbors and build strong relationships. By working together to organize events and resolve issues, you create a sense of camaraderie and a close-knit community, making your neighborhood a more enjoyable place to live.

Enhance Property Values

An active and well-managed HOA often contributes to higher property values. Volunteering can help maintain community standards and advocate for common areas and amenities enhancements, making your neighborhood more attractive to potential buyers and increasing your home’s value.

Gain Valuable Skills

Serving on an HOA board or committee provides an opportunity to develop valuable skills such as leadership, project management, and financial oversight — experiences that are not only rewarding, but also transferable to other areas of your personal and professional life.

Promote Transparency and Fairness

Active participation in your HOA ensures that the community is run transparently and fairly. You can advocate for equitable treatment of all residents, promote open communication, and help build trust within the community by ensuring decisions are made openly and with everyone’s best interests in mind.

Who’s an expert on self managed HOA software now? 🙋

Understanding HOA dues and fees is crucial to homeownership in an HOA community. By knowing where your money goes and how to stay on top of payments, you can enjoy the benefits of a well-maintained, organized, and thriving neighborhood. And with the help of self managed HOA software like PayHOA, managing your dues and staying in good standing with your HOA has never been easier. So, as you embark on your journey to becoming a homeowner, remember that staying informed and proactive is key to a smooth experience in your new community.

PayHOA offers an HOA management software solution for HOAs of any size or managerial priorities. To find out if PayHOA fits all your HOA management needs, try our software free for 30 days.