By their very nature HOAs affect property values. The question is whether the values increase or decrease. Much of that is in the hands of the HOA. Property owners and managers also have a substantial effect on the market value the condition of the property over time. Below, we provide some tips on how to avoid low property values and maintain a strong presence in the real estate market. If you need further consultation, you can contact our office. We’ll be happy to go over the property management services we provide.
Keep Property Maintenance on a Tight Schedule
You should be maintaining the appearance and condition of your property on a regular basis. Maintenance includes routine inspections on plumbing, electrical systems, etc., as well as beautifying the grounds, making sure all buildings are up to city and state codes and reminding the HOA members of their responsibilities. Community projects should be scheduled at the beginning of each year and carried out like clockwork.
Watch the Fees
Homebuyers pay attention to HOA fees more now than in the past. The amount of the fees play a decisive role in where prospective buyers choose to live. HOAs that pride themselves in higher fees because of public perception may want to rethink their marketing strategy. If a homeowner has to lower the price of their property due to higher fees to sell their home, it could affect the property values of the homes in the neighborhood. Your HOA board should consider this when establishing your fees.
Don’t Neglect Your Reserve Study
Reserve studies are a safety net that keeps your funds in check. When the time comes for you to make upgrades, repairs, or recover from a natural disaster, you can take care of the property financially so that it’s condition doesn’t deteriorate. We recommend setting up regular meetings to review the current state of your reserve study and make updates as necessary. With the right funds set in place, you can keep your property value high.
Vet Your Renters
Consider your rental policies and your renters very carefully. Over the last six years, HOAs have clamped down on property rentals. Renters often do not have the same appreciation for an HOA as the owners. They may also not have the same appreciation for the property as well. If your HOA allows homeowners to rent their properties, have a contract set in place that outlines the guidelines and regulations. We also recommend that you vet the renters to make sure they are responsible and adhere to all HOA codes.
Gassen Offers Property Management Service in Minneapolis
Gassen can help you manage your HOA. We offer comprehensive reserve studies, local property management, and accounting for all property owners and organizations. We can help you protect your HOA with the right tools. To schedule an initial consultation, call us at 952-922-5575, or you can message us on our contact page.