HOA’s are intended to regulate and protect their housing associations. From building safety to parking and repairs, HOA’s are enacted with the best intentions. However, they are not immune from facing difficult decisions and things going awry. Therefore, the right LA HOA Insurance is required in order to mitigate risk and financial responsibility. In addition, consider preventing the following common red flags to ensure your association attracts quality tenants.
The meeting minutes can reveal a lot about the HOA. For example, these will divulge any discrepancies between board members and homeowners, repairs that were put off for too long, and the HOA politics and inner workings. For potential home and condo buyers, these issues could be enough to prevent them from putting in an offer.
Rules and regulations.
Your HOA is implemented in order to regulate and monitor the association. However, if the HOA takes it too far and enforces rules and regulations that are too strict or unrealistic, you could be turning away potential buyers.
While there are generally accepted common rules, from time to time more excessive ones stand out that may not sit well with a potential buyer. Some examples include no RVs in the driveway or the required removal of Christmas lights by Jan. 15. A buyer’s response to such rules is subjective, explains Zillow Porchlight.
As we have discussed in a previous blog, the financial health of an HOA is a key factor that potential buyers will look into before signing on the dotted line. If there isn’t enough cash in the reserve funds and there’s a major project approaching, a “special assessment” will be levied to homeowners. This is a huge red flag for potential buyers and will likely result in them choosing another property.
About Scott Litman Insurance Agency
At Scott Litman Insurance Agency, we are dedicated to protecting HOAs like yours. We have a unique understanding of the industry and the common risk exposures that you face in your daily operations. In fact, we find that 90% of the policies we review are missing coverages that violate the Covenants, Conditions, and Restrictions (CC&R), exposing the board, HOA and management to lawsuits – which is why our comprehensive policies are tailored to meet your specific needs at competitive prices. For more information about our products, contact our experts today at (818) 879-5980 ext. 201, or fill out our online form.