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Category: Organizing Operations

Best practices for hiring an HOA attorney

by Kim Brown
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Kim Brown • • 7 min. read

Best practices for hiring an HOA attorney

Your homeowners association needs an HOA attorney. There are several reasons why this is true, but one of the most compelling explanations is that attorneys help to keep HOAs out of legal trouble, ultimately saving members thousands of dollars in legal fees.

Attorneys have specialized knowledge that cannot be found on Google or extracted from a friend. As such, they are in a position to charge more for their work. But the value of a good HOA attorney cannot be underestimated. 

If your community is currently looking to hire a new attorney, or wants to switch from an hourly rate arrangement to having a legal professional on retainer, this article is for you.

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Top reasons HOAs need an attorney  

HOA communities are expected to do a lot of complicated things like implement legislation or decipher governing documents written by someone else.

Board members may struggle to figure out how to stop a member from putting up bright holiday lights in the middle of September, but an HOA attorney has dealt with a similar problem multiple times. 

These are the most common reasons why HOAs need an attorney:

1. Interpret governing documents and laws correctly

HOAs are bound by their governing documents, as well as federal, state and local laws. The governing documents are extremely important because they dictate how an association should operate.

But so many documents are silent on particular matters or lack clarity. That’s because developers are responsible for writing the first set of documents, and they might not be as detailed as they should be.

HOA attorneys can explain and interpret vague or complex rules. For example, they could help a board decipher a clause that doesn’t clearly explain if a maintenance responsibility must be assumed by the association or by owners.

Similarly, attorneys are the best people to ask when trying to figure out how to implement new legislation.

2. Manage risk and mitigate liability

New board members may be surprised by the number of legal problems and liability issues that governed communities encounter. Often, these issues arise from accidents, disputes and property damage. But sometimes, odd situations, like owners wanting to volunteer to perform maintenance jobs, occur, and board members don’t know what to do next.

Attorneys play a crucial role in identifying and mitigating risks, implementing risk management strategies, and helping board members through unique situations.

By proactively addressing vulnerabilities and implementing preventive measures, attorneys help safeguard an HOA’s assets and protect the interests of its members.

3. Oversee amendments to rules and governing documents

Communities should amend and update governing documents from time to time. This ensures rules and bylaws remain relevant and align with other applicable laws.

An attorney will oversee the amendment process to make sure it is done correctly and the amended rule is still legal and enforceable. The attorney can also assist with wording to minimize the risk of liability or confusion.

4. Dispute resolution

Disputes and conflicts are inevitable. It is up to the HOA to enforce rules, but sometimes, it will need assistance to resolve a challenging situation.

Attorneys serve as skilled mediators and negotiators. They may be more effective when it comes to restoring or preserving harmony, especially if the owner knows they could be on the hook for legal fees.

5. Payment collection

This is another big problem within HOAs, but the board can’t let delinquent payments slide. Otherwise, the budget will fall short, forcing the community to take out a loan or increase regular assessments.

Unfortunately, there are times when an HOA will need legal assistance to collect assessments. For example, if the board needs to file a lawsuit or place a lien on a property, it will need the help of an attorney.

6. HOA representation

The HOA’s governing documents state the fiduciary responsibilities of the board. If an owner believes the board is not meeting those obligations, they may take legal action. The board would then need legal representation.

The need for legal representation isn’t limited to an alleged breach of fiduciary duty, either. Owners may try to sue the association or the board if they are unhappy with something, even if the action or decision did not violate HOA laws. In these cases, the association would need an attorney to defend the HOA.

7. General HOA matters

New problems develop all of the time, especially in larger associations. Fortunately, experienced HOA attorneys have seen it all, and can usually help board members with everything from privacy and surveillance questions to insurance queries.  

Hourly rates vs. retainer

Before we get to best hiring practices, HOAs should be aware of the different types of contracts they can agree to.

Many HOA attorneys will work as needed, and will bill by the hour. However, rates vary quite a bit depending on the firm, the attorney, the location, and the nature of the problem.  

Associations can also have an attorney on retainer, meaning that the HOA pays an ongoing fee (perhaps annually) and can ask for help at any time. The attorney may also offer perks, such as unlimited phone calls or emails.

Having a lawyer on retainer can cost an HOA thousands of dollars each year, and not every HOA needs frequent access to a legal professional. However, if you do find that your association is consulting with an attorney more than once per month, then having one retainer can actually save the community money and time in the long run. Plus, with this type of setup, you have someone who knows your community and that can be helpful when it is trying to resolve an urgent matter.

Best practices for hiring an HOA attorney

Communities should approach this process using strategies they would take to hire any other vendor. Ensure they have the right credentials, have experience in HOA law, and are compatible with your community.

Determine your HOA’s needs first

If you don’t know what your community needs, then it’s harder to select the attorney or firm that will best meet its requirements. For example, a small HOA that doesn’t often have legal issues could hire a reputable local lawyer who works independently. But a large association may need assistance from a law office that’s staffed with several HOA attorneys.

Hire an attorney who is familiar with state and municipal laws

HOA laws and ordinances vary from state to state, and sometimes, from city to city. Hiring an HOA attorney who knows municipal and state laws is critical. You should be confident that they are giving you relevant legal advice.

Seek recommendations

Word-of-mouth is still the best way to find a reputable service provider. If it makes sense, ask your property manager or neighboring HOA for a recommendation.

Personal referrals can provide valuable insights into the attorney’s reputation and capabilities. Plus, you’ll learn things that you won’t be able to find online.

Create a shortlist

Narrow your selection down to two or three candidates. Ask lots of questions, including if they have subspecialties, how often they go to court, and what they charge. Your attorney should also be someone you have a good rapport with. Compatibility matters here. When you have a tough matter to sort out, you don’t want to feel embarrassed or hesitant talking with your attorney about it.  

Check credentials

Verify credentials, including each attorney’s law degree, bar admission, and any relevant certifications. This ensures that the attorney is not only qualified to practice law, but also has the necessary background in HOA law.

Factor in fees

A good HOA attorney can be expensive. But they can also save the community from costly lawsuits or hours of paperwork. When making your final decision, it’s important to select a professional that the association can afford.

However, don’t choose your attorney based on costs alone. If the rates seem too good to be true, take that as a red flag. A good attorney knows their worth.  

Improve compliance in your HOA with violation tracking software

by Kim Brown
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Kim Brown • • 8 min. read

Improve compliance in your HOA with violation tracking software

Rules are not meant to be broken in an HOA community. In fact, rules play an important role in maintaining property values, setting expectations, and preserving an enjoyable living environment for the community as a whole.

Some rules might not be popular, but as long as they are enforceable and serve a purpose, every member is expected to follow them.

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That being said, someone will inevitably break a rule. Whether it was an honest mistake, or done on purpose, enforcement is necessary. But anyone who has been tasked with the responsibility of enforcing rules in an HOA understands how difficult that can be. 

Why is it so hard to enforce rules?

There are several reasons why it is hard to maintain a fair and consistent enforcement system. When multiple factors are working against associations, it can make rule enforcement feel like an impossible job.

  • *There are too many violations to follow up on
  • *There is no clear system for addressing violations
  • *Issuing violations doesn’t prevent owners from breaking rules in the future
  • *There is not enough time to manage violations consistently
  • *There is no one available to issue violations
  • *There is a desire to keep the peace, even if that means ignoring some violations

What if HOAs don’t enforce rules?

Sometimes it might feel easier to just let owners get away with violations, especially if they are minor. But ignoring infractions can actually encourage more people to break the rules.

That’s because when there are no consequences for unwarranted behavior, owners don’t have a compelling reason to abide by the HOA’s rules. 

Enforcing rules is far from enjoyable, but someone has to do it.

How does violation tracking software work?

According to data collected by HOA Central, when asked what responsibilities took up most of their time, community associations cited “resolving violations” as the third most labor-intensive task.

25% of respondents said it took an average of 1 to 3 days to resolve violations, while another 25% said it took 4 to 12 months!

When HOAs use violation tracking software, resolution times are almost always less than a month unless the matter is very complex. It’s even possible to resolve minor infractions in a couple of days. Here’s how:

Violation tracking software consolidates violations

Instead of logging and updating violations on a spreadsheet or trying to manage them using paper, violation tracking software organizes every violation, including drafts, in a single location. This way, anyone with access to the tool can see how many violations are outstanding, how many are past due, and which home each violation was assigned to.

Some platforms, like HOA Central’s violation tracking software, even have a mobile app that makes it possible to log violations while performing routine inspections.

All existing processes are preserved

Good software is flexible, meaning there is room for customization. HOAs can transfer all existing violation types, categories, timeframes and applicable fines to the violation tracking software.

Different communities will have different processes, and software maintains those processes to make the transition effortless. What is different is how efficient it becomes to enforce rules.

Instead of trying to remember how lawn care infractions are handled, or if there is a fine associated with noise violations, you can add every detail into the system once, and forget about it.                                                                                                                                                                

Just select who the violation is being sent to, the violation type and stage, due date and attach any applicable documentation. If no corrective action is taken by the due date, you simply click a button to move the matter to the next stage.

You can also print out the violation notice and deliver it to an owner if they prefer to receive physical copies of letters/documents.

If the board needs to vote before a violation can be enforced, that can be established during the setup process, too. When a new violation is logged, the voters are automatically notified via email, and they can vote digitally instead of having to schedule an in-person meeting.

Payments for fines can be made through the software

Owners are already unhappy when they receive a violation letter, and if there is a fine attached to the letter, they may try to delay making a payment for as long as possible. This is especially true if they know management has not been vigilant about collecting fines in the past.

With violation tracking software, it is possible to attach a payment link to violation letters. This way, owners can pay fines online.

While some will continue to ignore fines for as long as possible, providing a convenient online payment option does increase the chances of owners taking care of the fine on time. The sting from the fine is dulled by the fact that they don’t have to go out of their way to write a check or visit management’s office to pay for something they don’t want to pay for.

Plus, management is far less likely to forget about outstanding fines when they have real-time data about all outstanding violations.

Complex matters may still take a longer time to resolve, but all correspondence is saved under violations, making it easier to produce evidence if an issue ever requires legal intervention.  

How does software improve HOA compliance?

Okay, so HOA violation tracking software does a lot to streamline and automate rule enforcement processes, but how can it help with compliance?

When used regularly, software creates a system where violations are addressed promptly and consistently. As a result, owners (who talk to each other) see that there are consequences for breaking HOA rules.  

The consistent enforcement gives owners a reason to comply, which ultimately reduces violations within an HOA community. Fewer violations mean less enforcement work for staff, and fewer conflicts between owners and the board.

Other ways to improve compliance 

Having a robust violation tracking system in place will make violation management much easier. However, there is more an HOA can do to improve compliance.

Make sure rules and expectations are communicated clearly

Owners may have glanced at the very long list of bylaws, rules and policies adopted by the HOA, but they may not even be aware of some rules.

This problem can be addressed by making the association’s CC&Rs, bylaws, and rules and regulations easily accessible to everyone.

Many communities now use a website or resident portal to host governing documents online. However, you could also email your homeowners current copies of the documents so that they always have a copy on hand.

Send owners a notice about any rules that are coming into effect, rules that have been amended, or rules that will become important, once every 3 to 4 months so that they are aware of what the community expects from them. For example, send out a notice in early spring to remind homeowners about landscaping rules so they can prepare for lawn maintenance and other seasonal chores.

Aim to correct behaviors without punishing owners

People tend to respond better when they feel like they are being treated with respect. That’s one reason why most HOAs issue a warning letter before serving an official notice to owners.

A warning letter acts as a gentle reminder to homeowners, and it shows them that the HOA can be compassionate and reasonable. Furthermore, owners are more likely to comply with the rule if they’ve received a warning first. A violation notice never sits well with anyone, even if they have committed an offence.


If the offence is serious, then a warning letter is not likely appropriate, but many small violations can be resolved this way.

Assess the effectiveness of fines

Fines can be an effective deterrent, but they don’t always do the trick. Fines that are too low don’t work as well. You want to find a fee that is high enough to discourage an owner from repeating an offense, but not so high that it could create undue hardship.

In rare cases, an issue may need to be brought before a judge. But, look at other options available to your HOA before you go to court. This could include suspending an owner’s right to use shared facilities, or alternative dispute resolution.

Conclusion

The best way to improve compliance in your HOA is to ensure owners have access to the rules, and be consistent with rule enforcement. HOA Central can help you do both.