Many years ago when I started my HOA management company, we were using software that was designed for managing rental units. It was great software — adaptable, robust, and fairly cheap. But there were a lot of things that we wanted it to do that it just couldn’t.
Back then, options for HOA software were limited. Nowadays we have several great tools that make our lives easier. I began to see this a few years after we started, when I went to a national CAI conference. It was there that I realized how many tools were available, and how they could improve my company.
A decision like changing HOA software is a big deal for most management companies. It means training, down time, and who knows if it’s really going to work as well as that sales guy said it would. Consequently most companies are reluctant to make this change — especially when they are getting by with what they have.
Here are a few things that convinced me to make a change and how it has helped my company.
You don’t Know What You Don’t Know
As a business owner, I recognized the need for tools that dealt with specific HOA issues like violation follow-up, and reserve funds. What I didn’t realize, was how much time and money could be saved through other automation, and the integration with banks, accounts payable, mailing, and other services.
It’s Not Just HOA Software — It’s a System
When choosing HOA software1 it’s important to remember that the success of your management company depends on the implementation and use of a system. Personnel, HOA software, and service providers are all part of that system. When they all work together, and when the system works, managers are able to handle their job with ease. If part of that system fails, your service falters and your company fails.
The right HOA software provides the platform for managers to complete their tasks efficiently and easily interface with vendors and service providers.
It’s Your Competitive Advantage
Using the right software can also be your competitive advantage. One area where we found this to be true was in using an online accounts payable2 service. It allowed board members to view and approve invoices online from anywhere. It also tracked and verified that each invoice was approved by the the appropriate individuals. In short, it protected association money, and it saved us a ton of time. As an added benefit the vendors loved it because they were paid quicker instead of having to wait for the next board meeting. And happy vendors can make your life easier in a lot of ways.
When it comes to acquiring new clients, features like this can make the difference in winning a contract… or not.
HOA software is constantly changing and getting better. It’s helping us automate processes and communicate better, with… well, everyone! If you haven’t looked into it for a while, or if you’re using a system that is just barely getting by… it’s time to evaluate your HOA software and put together a system that will help you grow and compete better.
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Help
Managers need to have software that integrates seamlessly with their bank, a secure lockbox, accounting and and management tools in one package, and a payment portal where owners are not charged when they make payments. Having several software packages is not efficient.
What is your opinion about HOA’s having their own applications, website, and data ? I have been on a Board for several years and I have worked for a Property Management company for several years. I know Mgmt companies don’t like loosing customers, but it would be better for the HOA’s to not deal with converting homeowner accounts and information every time they change. My current HOA has changed 3 times in the last 3 years. The sad thing is 2 of the companies used the same software, but we didn’t get the same data on the end. I guess it’s too much to ask that Mgmt companies standardize on their applications.
Rick, you make a great point. Continuity between managers is important, however I am not sure there is a great solution that I am aware of. With websites like Gladly you can simply assign a new administrator or manager – the site can move from the manager to the board or another company with relative ease.
With management software that is a little more difficult. Your dealing with a lot more data and a system built around their company. Any data that you can export is usually kinda raw and can be difficult to insert into a new system. One of the problems with the HOA having their own management software rather than using that of their manager is that it is more expensive. A management company will often pay for a ‘seat’ so one seat can manage many communities. If you have your own seat you will be paying a significant premium. In addition, management companies have a system and if you have software outside that system they will lose a lot of efficiency. As a manager I would simply not manage a community who was not willing to use the system. It sounds like a hard line but the system and efficiency are what makes management companies profitable. without that they with either be over priced or losing money.
The solution to your issue is to find a better management company who you can be with for the long haul. I Know… Easier said than done!
Good luck
Sure, use your own software, but get an integrator who specializes in HOA data to work with you to sync your data to the management company’s system and vice versa. Certain integrators, such as myself (https://www.linkedin.com/in/michaelmugge/), will even make it affordable by only charging you a small percentage of each paid assessment, meaning that you only pay for the integration as you collect assessments .. and if you have to lower assessments, the integration fee also goes down.
http://Www.ciraconnect.com
Curious why you mnetioned VMS. Its ranked very low on capterra.com