Your complete guide to homeowners association software
Hey! If you’re looking for in-depth information about homeowners association software, you’re in the right place.
In this article, you’ll learn all about the basics. After you reach the end, you’ll be able to determine if HOA software is right for your community, and how it can help you resolve some of those persistent issues that slow productivity and make owners unhappy.
Table of contents
- What is HOA software?
- Why your association might need HOA software
- Types of HOA software
- Must-have features
- What’s the cost?
What is HOA software?
If you’re not familiar with HOA software, that’s completely okay. At its core, HOA software is any platform or program designed to help HOAs operate more efficiently. HOA software can eliminate repetitive processes, streamline day-to-day operations, improve the owner experience, and even reduce costs or unlock revenue opportunities for communities.
When designed well and used correctly, HOA software can help you gain control of routine chaos, and create stability and transparency for your entire association.
Why your association might need HOA software
There’s nothing wrong with managing an HOA the traditional way. Communities have gotten along just fine without software for decades. But, most communities, especially self-managed communities, would agree that it is becoming increasingly difficult to manage costs and demands without help.
If you are a manager or board member and are constantly worrying about keeping up with delinquent payments, stressed out by all of the paperwork that needs to be completed, or if you feel like your owners always have something to complain about, then it might be time to look for a solution.
These are the key reasons why HOA management companies and self-managed HOAs turn to software to help them succeed:
- *Upgrade communications and reduce print and mailing costs
- *Comply with legislative requirements
- *Improve transparency and access to information
- *Put an end to tedious manual processes
- *Create a source of truth for your owner database, community documents, requests, reports, tasks, and events
- *Strengthen the financial health of the community
- *Increase the speed at which approvals are made
- *Establish a fair and consistent system for managing violations
- *Improve voter turnout and community engagement
- *Increase owner satisfaction
Good HOA software can assist with all of these things. Most platforms address communication, operations, and record-keeping in some capacity, and many have accounting and access control solutions for an additional cost.
Communities of every size will see noticeable benefits when they start using HOA management software, but it’s the mid-sized and large HOAs that will notice big reductions in operational costs. That’s simply because there are more people to care for and more tasks to manage.
Managers who care for multiple properties will also appreciate a robust cloud-based platform because they can be more involved with each property without having to be there physically.
Software helps to keep them organized and enables them to maintain productivity from anywhere. Recently, it has also helped them offset rising costs. With self-serve owner tools and automation capabilities, HOA software has made it possible for managers to balance expenses without cutting corners.
Types of HOA software
There are dozens of software platforms out there designed specifically for residential communities. Every platform is unique in some way, but they can all be categorized into one of four general categories.
Accounting
Some platforms excel in accounting. Yardi is a good example. These software programs have superior accounting functionalities and are ideal for large communities or management companies.
Accurate numbers are critical to the health and stability of any community, but when you’re dealing with multimillion-dollar budgets, you need a reputable accounting system to help you track and document everything.
Communications and engagement
Good communication can bring a community together. The more owners know, the easier it is for them to participate and comply with rules and expectations. That ultimately leads to higher property values and more harmonious neighborhoods.
HOA Sites designs professional, user-friendly websites at a very reasonable rate. There are also companies that have excellent portals that owners can access from their phones. Websites and portals are familiar to owners, making them a good choice for communities that want to improve communication, engagement, and access to information.
Operations
Niche software for virtual meetings, amenity bookings, and access control create more streamlined operational processes for HOAs. These tools may be available individually, or as part of a more comprehensive plan. Butterfly MX is an example of a security and access control software that offers security and convenience to gated communities.
All-in-one
You will be hard-pressed to find one software that does everything exceptionally well, but some programs come very close.
HOA Central, for example, has exceptional communication and operational solutions. The customer support is second to none, and owners love the user-friendly mobile app. There are basic accounting features, but HOA Central integrates with several well-known software like QuickBooks and Yardi. This way, you really can have it all.
Must-have features
When searching for the software that best satisfies the HOA’s wants and needs, price is going to come into play. But that shouldn’t be the only consideration. You will want to select a platform that caters to the owner experience, offers value to the association as a whole, and remains useful as the community grows and changes.
Instant communication
This is a non-negotiable. The software should provide you with multiple options for reaching owners and residents right away. This can include email, text and voice messaging.
While many people will view announcements through their accounts, not everyone is comfortable accessing information this way. As such, having the option to send text messages or automated voice messages is important, especially if there is an emergency.
Not only does instant communication help create more engaged communities, but the association will see a noticeable reduction in print and mailing costs. Our customers generally see a 40 – 60% reduction in paper costs within the first 3 months of signing up with HOA Central.
Mobile app
If you want owners to use the software, a user-friendly mobile app is another must-have. The mobile app has a collection of self-serve tools that owners can access on the go.
From submitting a request to book the party room to checking when the next member meeting takes place, owners can do more for themselves when it’s most convenient for them. Plus, board/staff members see a reduction in admin work since owners don’t need to come to them every time they have a question or request.
Option for online payments
According to the most recent Statistical Review for Community Association Data, $108.8 billion in assessments were collected from U.S. homeowners! Since HOAs are non-profit organizations, associations rely almost exclusively on timely payments from owners in order to pay for professional management services, reserve funding, utilities, security, insurance, common area maintenance, landscaping, capital improvement projects, and amenities.
Unfortunately, collecting payments can be challenging, especially if you care for a large community. But even a handful of late payments can create cashflow problems.
Online payments won’t completely eliminate delinquent payment problems, but this feature certainly encourages more people to pay on time. The convenience of online payments cannot be understated. People pay for almost everything online, so shouldn’t they have the option to pay assessments this way, too?
Moreover, online payment processing is much more efficient for associations. Owners can authorize automatic payments for recurring fees and use credit cards, pre-authorized debit, direct withdrawal, electronic funds transfer or ACH payment to cover fees. That means management doesn’t have to collect and deposit so many checks, and transactions are recorded for owners and for management.
Document library
Keeping community records in an office creates obstacles for owners who want to review minutes or budgets.
Owners have a right to see most HOA records, so why not make them more accessible? Digital document libraries allow staff or board members to create and customize folders that can be accessed at any time by anyone with authorization. Permissions can be set so that only certain people can view certain folders.
Some states are now required to maintain a website or portal and share certain documents with members on the platform. A file library makes it easier to organize and find these documents.
Integration capabilities
Since there is no perfect HOA management software, having the option to integrate two high-performing software systems can make it feel like you have one perfect solution. Enjoy more of the best features from multiple platforms without having to log in and log out of each program.
Customer support
At some point, you, your team and your owners will have questions about the software. When that happens, it’s good to know that there will be a real person available to help you.
Videos and written instructions are appropriate for simple situations, but for more complex issues, it’s best to talk to someone who knows the software and can fix the problem.
Bonus: AI-powered tools
AI might sound like a gimmick, but the truth is it isn’t going anywhere. AI has demonstrated that it can effectively work with HOA software and make it more enjoyable to use. For example, an owner could type in a question about pets or plants.
Instead of pulling a wordy paragraph from the HOA’s pet policy or architectural guidelines, the AI tool could search all documents in the online library and respond with natural language.
AI can generate and process high volumes of information in seconds, and it will undoubtedly add to the owner experience.
What’s the cost?
HOA software will save your community money. But that doesn’t mean you should agree to the most expensive plan either.
Costs vary a lot depending on the platform, plan, and the size of your community. Most HOA software providers will set prices based on the number of doors that the association has, and how long the subscription will last.
Monthly fees range from $100 a month to more than $800 a month, but on average, a mid-sized association can expect to pay roughly $500 every month.
Conclusion
So, now you have a basic understanding of how HOA software works and how it helps communities like yours.
The next step is to find the platform that solves those pesky recurring issues that make life harder for your owners and your team.
If you want to find out if HOA Central could be a good fit, don’t hesitate to contact us. We’d love to chat.
