Technology Trends Shaping the Future of HOA Management

Key takeaways:

• Millennials are gaining in the housing market and are driving change.
• Today’s homeowners expect a well-managed website, HOA apps, and payment portals for convenience and simplicity in HOA management.
• Community engagement has gone virtual with message boards, online voting, and push notifications.
• Fraud schemes are advancing with technology, and HOA management software must keep pace with reinforced security to protect sensitive data and personal information.

The next generation of homeowners prefers convenient, efficient, transparent, and sustainable solutions for living. Homeowner associations (HOAs) are meeting this need by adopting leading technologies to enhance the online user experience of HOA apps and websites. Today, apps can manage nearly every conceivable lifestyle function, from grocery shopping to banking, parking, and home security. Similarly, evolving technology and digital platforms are simplifying the day-to-day operations of HOAs while increasing engagement from members. Here are some trends changing the landscape of HOA management.

Millennials are the Face of the New Housing Market

Millennials are in their home-buying prime. According to the 2024 Home Buyers and Sellers Generational Trends report, millennials now make up 38% of the market, up 10% from the previous year. As the largest living generation with the most significant share of the homebuyer demographic, millennials are transforming how homes are purchased, sold, and managed. This generation has a different set of priorities from their predecessors. They want efficient, convenient tools that complement their work-life balance. For example, Wakefield Research found that 86% of millennials are willing to pay an average of 20% more for a home with smart home technology. Their comfort with technology allows them to leverage online platforms from anywhere for home research, cost comparisons, and even mortgage applications. Job flexibility and remote working arrangements have enabled millennials to expand their home searches beyond an urban setting to rural and suburban areas with improved cost of living and more space. There is a rising interest in community living within this group, and they want digital tools for HOA payments and communications, so ready or not, HOAs, here they come.  

No Website Equals Red Flag

Younger generations expect their HOA (and most businesses and organizations they interact with) to have a legitimate website. Forbes Advisor cited data from the National Association of REALTORS® reporting that millennials were more likely to start their home-buying process with online research than any other age group. This tech-savvy demographic grew up with the internet, and it’s second nature to use it as their primary source of information. Nearly 100% of millennials say they use the internet, with 19% being smartphone-only internet users. They find it frustrating if they cannot locate important information about their HOA community online.

Additionally, millennials spend an average of 253 minutes accessing apps or the internet via a smartphone daily. On top of a well-designed and managed website, they want an HOA mobile app for convenience, accessibility, and digital engagement with their community. The availability of these resources can factor into the decision-making process of where they will live.

Homeowners Expect Organized, Automated Digital Communication

Millennials are interested in managing and curating communities. They still use mass social media platforms like Reddit, Facebook, and Nextdoor, but HOAs should strive to keep communication within the family through a private community forum.  For important information about their community, like special events, rule changes, and maintenance schedules, millennials prefer push notifications to their phone and uncluttered two-way communication tools to feel heard and involved. Board members can send messages, survey residents, and collect feedback instantly through HOA apps. Today’s homeowner expects this immediacy and engagement, especially for resolving conflict. Members can file complaints, request maintenance, or report issues through HOA apps. Apps also increase the likelihood of a timely response, which can reduce the friction of unaddressed concerns common to traditional HOA management methods of communication.

HOA App Users Want Payment Portals and Financial Transparency

When it comes to managing finances, convenience rules. Fees, assessments, and dues are part of HOA-governed community living, and residents want a seamless payment process. Writing checks is less popular than ever, and younger generations rarely do it. They have a portal for most things that require payment in their lives, including Friday-night pizza delivery. HOA management systems that meet the demands of today’s homeowners feature personalized payment portals, automated billing, payment tracking, and financial reporting. Plus, financial automation reduces errors and improves record-keeping so members can rest assured their money is in good hands. These functions create the transparency HOA members crave. They can see their payment history, review budgets, gauge the overall health of their HOA, and understand how their fees are allocated online or via the app.

Enhanced Security is a Must

With technological advancements and increased digital transactions comes more sophisticated fraud, scams, and cybercrime. Reinforced security measures are imperative for protecting HOA members’ personal information in a world where leaks, breaches, and stolen identities are the norm. HOA platforms are investing in additional security methods, such as cloud-based management systems with secure storage options for confidential documents and communications. They use encryption, two-step verification processes, and biometric logins like facial recognition and fingerprint scans to safeguard sensitive data. A security breach can fracture a community’s confidence. It’s in the association’s best interest to uphold and protect it. Innovative HOA management uses today’s secure digital methods for bookkeeping and documentation.

Staying on Top of the Trends

An HOA with a finger on the pulse of this generation of homebuyers will be able to create an efficient, active, thriving community. With an eye toward a well-managed website, fortified security, and convenience factors like a mobile-enhanced app, HOAs can ensure their residents are happy and involved.  Investing in all-in-one HOA management software can meet today’s homeowner and association objectives with a personalized portal that grants access to its features and benefits, which include:

• A website builder—HOAs can establish an online presence with a functional, branded website that allows prospective and current members to find answers to their questions, gain insights, and connect with the community.
• Mass communication tools—Administrators can create a communications hub that raises community awareness and increases engagement with message boards and mailing functions. They can send notifications about events, community projects, policy changes, emergency alerts, and more.
• Payment portals—HOAs can accept secure online eCheck, debit, and credit card payments for monthly dues, special assessments, and other fees to increase efficiency and reduce administrative burden.
• Robust security and technology—Consistent data back-ups at regular intervals and military-grade security can strengthen the infrastructure and integrity of HOA management software and storage. Systems that integrate with third-party ancillary and supplementary technology services streamline operations and address all HOA administrative and member needs in one place.
• Convenience elements—Residents can easily submit maintenance requests, participate in online voting, pay automatically, and view HOA documents and reports.

An HOA management technology upgrade can provide administrators with more effective methods of handling finance, maintenance, and communications tasks, whether the association is self managed or under a property management company. With advanced accounting automation tools, it streamlines accounts payable and receivables. Officers can track expenses, store and access essential documents, run reports, manage violations, and more. They can communicate with the community and collect feedback through surveys, fostering that virtual town hall feel.

PayHOA is at the forefront of complete, multi-functional HOA management software for today’s homeowners. The PayHOA app includes finance, accounting, document management, and communications tools with the latest security measures and an easy-to-use interface. HOAs of any size can enjoy the benefits of efficient bookkeeping, better interactions, and increased community engagement. Learn more about PayHOA, its features, and how it is helping to shape the future of community management.

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.