Home Owner’s Associations have flourished during the last 25 years. This has come about since population growth is escalating in urban and city environments. This is because the jobs in the industry are at these locations and supply is driven by demand.
People don’t want to be commuting too far to work and they want to be as close to their place of employment as possible. Over 8000 new community associations are formed yearly and this industry is estimated to be worth $35 million annually in America alone.
Over 60 million people now live under the Home Owner’s Associations governance. These communities account for over 50% of planned communities. 90% of home owners find themselves on friendly terms with their association and 78% of home owners believe that the efforts of associations enhance their property value. This is all good news.
The upward trend is growing as many see it as a way to live in pleasant surroundings. Many associations prohibit home owners from installing home business offices, clotheslines, solar collectors, fences, vegetable gardens, display of all flags and pets. This produces an environment that is clean, standardised and safe. For those who lead very busy lives due to work commitments and the like, this keeps home life simple and allows property values to be maintained.
The recent economic recovery is great news for home owner associations and their management companies. New types of these communities are forming every year in order to cater for this new trend where people are seeking a new way of community living and they are willing to pay for it.
However, it is not all plain sailing for the home owner’s associations that serve their community. There are a lot of growing pains around the association where there can be set backs to growth and development. These home owner associations can easily become tied down with day to day tasks and may not have the time or energy to set goals for future growth and development. Profit margins can be very slim so extra monies needed for development and growth can become a real challenge.
One of the main causes is that they lack the relevant expertise and knowledge to manage a neighbourhood or community effectively. In later years, specialist management companies such as the Cedar HOA Management Company have been hired to take over the running of a home owner’s association. These companies have the specialist knowledge and professionalism to carry out the tasks easily. They also have the right employees in place to serve the demands of the residents.
A strong home owner association management team can put the right policies in place which should include growth and development. They understand the people that are needed, the process involved in governing as well as the relevant technology that is required. As the legal framework gets more complicated, they have the expertise to deal with such ongoing changes as home owner associations evolve into the future.