The Educated Board: How an Educated Board Can be a Manager’s Greatest Asset

BY: DOREEN MURRAY, CCAM, VINTAGE GROUP

Given the amount of change in our ever-growing industry the need for educated board members, accessible training and practical leadership is required to govern your associations effectively. Operating a homeowners’ association carries with it many of the very same duties and responsibilities as overseeing any other type of business. It is imperative that our board members be aware of the undertaking they are committing to and that the role of board member is fully explained. Serving as a board member is a valuable and rewarding experience that should be undertaken by those who see it as an opportunity to serve their fellow neighbors, while protecting and enhancing the assets of the community in which they live.

Board education is a key factor to the success of your team. An educated board can be a manager’s greatest asset. Every board member should read and be familiar with the community’s governing documents. Reading community documents is one thing, but really knowing and understanding them is another. Provide your new board members with enough time to familiarize themselves with the governing documents as well as their roles and responsibilities.

The majority of the questions residents will be asking can be solved effectively by the board knowing their way around the documents. Convoluted and outdated documents? Encourage your board members to ask for clarity or help, by contacting your association’s legal team. When questions arise, reach out to experts whenever you can. Having a board educated by your vendors is beneficial for all parties: your board gets the knowledge they need to make the best decisions for their association and your business partners have the opportunity to share their knowledge and skill with their clients, deepening the relationship.

Once your board is familiar with the documents and the responsibilities associated with their roles, you can start educating the directors on the financial responsibility associated with being a board member. It can be intimidating if your board is not familiar with accounting, insurance, or finances but it is not detrimental. By educating your board on the accrual methods used, how a budget is created and the importance of reserve studies and projections, you can set their association up for greater success. Thankfully, you do not have to do this alone as your business partners can attend board meetings and supply you with information on how and why these practices are in place. Reviewing the financials monthly can ensure that your board members are aware of the financial health of the community and gives them the opportunity to ask questions and gain knowledge. Board meetings are the perfect time to educate. By building education into your regular meetings, you are not only educating your current board but preparing potential board members in your community for future roles.

It would be impossible to teach a board everything in one session, one training or even one term. The laws in the industry are constantly changing and growing, so managers and their teams need to stay focused on their educational opportunities take advantage of all resources offered to them. Qualified managers ease the burden of board members.

Education is paramount. When boards don’t have an education, everyone suffers. Common symptoms range from misunderstandings amongst board members or between the board and homeowners, to a lack of engagement, focus, or direction, to ethics violations, financial jeopardy, and bankruptcy.

You’ll have to work with your board members and practice empathy and patience when dealing with homeowners, residents and even your own team members. An educated board is an engaged board, that is high functioning and willing to collaborate. The association industry itself values education and has always made it a priority. By passing on this mission of education, we are providing our homeowners with a better quality of living in their own communities.

Doreen Murray CMCA is a Regional Manager with Vintage Group, a full-service residential property management firm. Doreen can be reached via email at doreen@vintagegroupre.com