Numerus HOA Services

Understanding your HOA's financial statements are a vital necessity for board members, and homeowners too. You don't need to be a professional accountant or bookkeeper or know the differences between debit and credit (and we're not talking about credit and debit cards), but it helps to understand what the basic financial statements look like, what they mean, and how it impacts your association. In a previous article, we wrote about balance sheets for HOAs . If you didn't read that article, you may want to take a moment to go back and read it. If you think of a balance sheet as a "snap shot" of the HOA's financial situation at a given point in time, you can think of an income statement as a summary of the financial activity for the reported period. HOA income statements are normally prepared on a monthly basis, but you may see them prepared for a quarter, or even an entire fiscal year. An income statement goes by different names. In corporate finance, it...

There are many facets involved with managing a homeowners association - finances, collections, insurance, maintenance, rule enforcement, record keeping, and the list goes on. For larger associations, this usually means enlisting the help of a management firm or a property manager to take care of these tasks. Many associations do not need a full service management company, or perhaps don't have the budget to afford one. These could be smaller condominium developments or single family HOA subdivisions with limited maintenance requirements. There are few options for smaller associations: Remote HOA Management for Small HOAs Numerus provides remote HOA management  remote HOA management that is designed with smaller associations in mind. Numerus provides a majority of the services of a local HOA management company at a fraction of the cost. In summary, Numerus handles all of the "paper work" and administrative duties of the association: Collection of HOA dues with multiple pa...

 When it comes to managing your association, the volunteer board may find that that it's too time consuming or difficult with all of your other responsibilities. After all, many board members have families, careers, and other life issues that will all take precedent over their HOA duties. An HOA management company can help reduce this burden. However, it's important to keep in mind it is not a magic pill that will cure all of the problems. Many board members rush into making a decision and hiring a company because they're burned out, cannot get volunteers, and just don't have enough time to volunteer as much as they would like. Or maybe the board has already hired a management company, and they're tired of the unsatisfactory performance, and so they want to replace them. It is important to understand that hiring the right management company can have major consequences and lasting impacts on your community. It is best to avoid knee jerk reactions and to perform prop...

When it comes to managing homeowner associations, you're going to find a wide variety of opinions on the subject, as well as HOAs in general. Some board members refuse to have an outside company and insist on doing everything themselves. Other board members are too busy, too inexperienced, or too burned out and want to have a company. Whatever the reason might be for hiring an hoa management company for your homeowner or condominium association, is to understand WHY you want to hire one, weigh the pros and cons, and then make an informed decision. Unfortunately, we've seen many people have misconceptions about HOA management companies and we hope to clear the air a bit. First, we'll start with intent. Intent Some board members, and even homeowners, view the management company as "the bad guy." Angry homeowners will blame the management company as the overbearing rule enforcer who's making their lives miserable and is just there to take the money from the home...

Understanding how your HOA is governed does not require a legal degree or a licensed attorney. That said, if there are conflicts in the language, or you’re looking to change your governing documents, then an attorney will be beneficial. More on that later. First, let’s dive into how HOA’s are governed, the laws around them, the governing documents, and how this all applies to your associations. Why are homeowner associations created in the first place? In short, an HOA is established to maintain and preserve the common elements of the community. These common elements can vary depending on the type of association that you live in. Some associations are responsible for maintaining the exterior of the units and the roofs. This is more typical of a condominium and some townhome developments. Other common elements may include roads, parking lots or garages, sidewalks, playgrounds, a community pool, fitness and recreational areas, and more. As a member of the homeowner’s association, you are...

  What is a balance sheet and why is important for my HOA to provide one? A balance sheet is a financial statement that provides a snapshot of what an organization owns, and also what it owes to other entities. Where an income statement shows a summary of financial activity over time, a balance sheet is a snapshot at a particular point in time. It is one of the most important documents for managers and board members of a Homeowners Association (HOA) to understand because it provides a snapshot of the association’s financial health. What is a Balance Sheet? A balance sheet is divided into two parts that, based on the following equation, must equal each other or balance each other out: Assets = Liabilities + Equity Assets : These are what the HOA owns—such as bank accounts, investments, buildings, and equipment. Liabilities : These are what the HOA owes to others—like loans, unpaid bills, etc. Equity : Also known as net assets, equity represents the owne...

Cash Basis vs. Accrual Basis Accounting for Homeowner Associations When it comes to accounting for homeowner associations (HOAs), two primary methods are used: cash basis and accrual basis. Understanding the differences between these two can help HOA board members and residents make informed decisions about their community’s financial management. Cash Basis Accounting Cash basis accounting is straightforward: transactions are recorded when cash changes hands. This means income is recorded when it’s received, and expenses are noted when they are paid. Cash basis accounting is more similar to what we use with our personal finances and is commonly used by small entities and small business. Pros: Simple to Understand : It’s easy to track money as it comes in and goes out, making it less confusing for those without an accounting background. Clear Cash Flow : It provides a clear picture of how much cash the HOA has on hand at any given time. Cons: Not Reflective of True Financial Position : ...