Tips For Managing HOA Board Turnover

HOA community management for self-managed associations means dealing with the turnover of board members.

Some level of turnover may be anticipated, as self-managed HOAs are run by volunteers balancing association and life responsibilities. Sometimes the unexpected happens and, for one reason or another, these volunteers must resign. While a third-party management company would handle their own hiring and firing internally, self-managed HOAs must put practices in place to address both expected and unexpected turnover.

Expected turnover for HOA boards happens when a member’s elected term ends. Also, in most cases, should a member’s term prematurely end, they would give any required reasonable notice to give the board time to respond.

Yet this isn’t always enough for a board to prepare for one or more members suddenly resigning—or even to handle turnover, in general, without the right processes in place.

By preparing for resignations and following the right steps when they happen, associations can handle turnover without it impacting their day-to-day HOA community management goals.

HOA Management Software: A Tool Anyone Can Use

HOA management software can provide a holistic digital tool for HOAs to operate and manage their neighborhoods. This software offers a high level of automation and easy learning process to smooth the transition between board members, all at a fraction of the expense of hiring a property management firm.

HOA management software’s budgeting, financial management, and digital dues collection tools don’t require an accounting background to operate. HOA software also offers easy-to-use functionality for secure storage and accessing unit, homeowner, and vendor data. Dynamic digital communication tools let you use HOA software to stay connected with the needs of your community. Ultimately, HOA management software allows anyone to step into a volunteer management role with the maximum chance of success. 

With the right software tools and plan in place, your association will be prepared for managing any HOA board turnover you may face.

Table of Contents:

1.      Getting the Departure Down in Writing

2.      Updating Your HOA Community Management Systems

3.      Recovering Key Documents and Property

4.      Knowing the Procedure for Electing New Board Members

5.      Recruiting New Board Members

Getting the Departure Down in Writing

When a board member resigns, it’s important to first ensure that the member formally resigns and doesn’t plan on changing their mind.

A formal resignation would mean that the board has recorded and recognized the resignation. With the right documentation, you can finalize the departure and protect against any misunderstanding or the member being wishy-washy about their decision.

Boards should get a formal letter of resignation from any member resigning before their term ends. The letter should then be accepted as part of a board meeting and officially entered into the minutes, so that there’s a permanent record made.

It should be clear for the board, the member resigning, and residents that this departure is final. The board will then have a clear starting point for taking steps to replace the resigned member.

HOA management software provides storage for important records such as board meeting minutes, governing documents, and other files and data in a secure, digital repository. This allows for an easier transition when the resignation is finalized. 

Updating Your HOA Community Management Systems

When someone leaves the board, you don’t want to accidentally forward them an email message intended only for current board members. Likewise, you wouldn’t want someone to have access to sensitive password-protected information in your HOA management systems. At best, it spells inefficiencies in how turnover is being handled. At worst, these issues can pose potential security risks.

Updating these systems after a board member departs helps smooth the transition to a new member and helps the board keep a clear record of the change.

A few systems to address may include:

·        Password-protected systems

·        Board-specific email accounts

·        Removal from email lists

·        Updating other permissions

·        Updating the record of membership in official documents

If you have emails set up for the role (for example, boardmember@hoa.com), rather than a personal email, access to the email address can easily be switched to the new board member.

An HOA’s governing documents may contain specific steps to this process that the board should follow. If they don’t, it’s time to create those steps.

Recovering Key Documents and Property

HOA board members often have the responsibility of overseeing important documents and other HOA property. This could include anything from accounting or legal files, to financial records, to anything that a regular non-elected homeowner shouldn’t be in possession of.

The board of directors should have a permanent list of what should be recovered when members,  within each role, resign depending on what the person in a certain position is given to oversee.

That way, no regular homeowner will have access to board-specific files and documents, and these items won’t become damaged or lost.

HOA community management software simplifies this process by storing all these files and documents in one central, digital repository. This means no more paper records and ledgers to track down or have to sort through. You can store, access, and share these files any time, as well as instantly change permissions for who can access what information.

Knowing the Procedure for Electing New Board Members

How and when new board members get elected will depend on the specific process laid out in your governing documents and can differ depending on your state.

For instance, some states allow the departing person to name their successor. In other instances, either the remaining board members or other homeowners will hold a vote on who will fill the position.

Review the laws for your state on how to fill these vacancies, which should be clearly outlined in the HOA’s governing documents.

Recruiting New Board Members

It’s not always easy to fill board of director positions, yet the board forms a critical part of any HOA community. Essentially, an HOA cannot exist without one.

Having a recruitment plan in place can help a board garner interest and fill vacancies quicker and more effectively.

A good place to start may be to contact community members who lost past elections. If they showed a motivation to serve before, there’s a chance they may still be interested.

Although some homeowners won’t initially have the ambition to serve with the board, you should still reach out to explain how their service would benefit the neighborhood and help maintain property values.

You should also announce the resignation to the community and give advance notice of any election that will be held.

HOA software makes the job of a board member easier and more accessible, as being able to automate and manage complex community tasks from a single digital hub significantly lowers the barrier of entry for any new volunteer.

It also gives the board the ability to instantly communicate with homeowners through mass text, email, and  preprogrammed telephone messages, send digital surveys, or share upcoming events on a community calendar they can view on their phone or tablet. With these tools, homeowners are never out of the loop when it comes to the resignation of a board member or any other important neighborhood update.  

PayHOA understands the challenges associations face when placing volunteers into an HOA community management role they may find daunting. Our AI-driven, all-in-one HOA management software is designed to make that transition as seamless and easy as possible for any member of any skill level. That’s why over 7,000 HOAs across the country trust PayHOA to help make their neighborhoods a better place to live, and 98% of our users recommend PayHOA.

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.