4 LESSONS THE HOA INDUSTRY LEARNED DURING THE PANDEMIC

By Tyler Gill

THE HOA INDUSTRY HAS BEEN THROUGH A YEAR LIKE NO OTHER AND LEARNED SEVERAL LESSONS OVER THE LAST 12 MONTHS.

The industry learned news ways to adapt quickly and dramatically to changing business conditions. It learned about the benefits of remote work and found out how vital business to-business communication is and will continue to be.

To better understand the shifting landscape, AvidXchange surveyed more than 400 HOA board members and property management professionals.

Our findings, supported by data and qualitative insights, revealed four stark lessons learned by the HOA industry since the onset of the COVID-19 pandemic.

1. ADAPTABILITY IS KEY

Arguably the largest lesson learned by HOA industry pros was the importance of adaptability to changing business conditions. Survey respondents said “adaptability is key. Being able to turnkey operations and communications depending on the current environment is imperative to smooth and complete operations.”

Those surveyed learned “nothing lasts forever, to be flexible and ready to adapt to change.” They realized “there’s only one thing you can count on–change–and that you’ll “always need a way to take care of the customer.”

The survey data underscores these sentiments. Forty percent of respondents said improving adaptability and flexibility to better handle an uncertain future–such as business continuity plans— ranked as a top priority this year.

2. REMOTE WORK CAN BOOST PRODUCTIVITY

Like so many other industries, HOA pros discovered the many business benefits of working from home, including the ability to operate as usual with a remote workforce.

Looking at the survey results, 42 percent of management company employees said at least half of their organization works remotely.

One-third of respondents said “having some employees working in person and others working remote” will be one of their top challenges in 2021, but it seems the HOA industry, and others, are doing a strong job clearing that hurdle. Association boards have even discovered that homeowners are more likely to join HOA meetings when they can do so from the comfort of their homes.

3. HEALTH AND SAFETY ARE CRITICAL FOR EMPLOYEES AND ASSOCIATION MEMBERS

HOA managers also had to be more mindful than ever about conducting business in a careful, health-conscious manner, while association boards were challenged to maintain community safety for homeowners.

Nearly half of survey participants (47 percent) said they implementing new precautions and health safety measures for common areas and amenities.

Another big challenge? Holding revenue-generating programs and community events with social distancing guidelines was cited by 23 percent. Sixty percent already use technology that minimizes in-person interactions while creating a better experience for current and potential tenants. This year, an additional 14 percent plan to use/adopt this type of technology.

4. TECHNOLOGY & ONLINE PLATFORMS ARE MORE NEEDED THAN EVER

Respondents often referenced the need to have state of the art technology to drive efficient, effective business processes and recognized the need to move to online platforms.

The survey data reflects those sentiments. A large majority (78 percent) said a top priority is improving and enhancing operational efficiencies to save time, money and reduce risks.

From a payment perspective, the HOA industry saw firsthand the importance of fast payments, clean records and reporting and lower overall costs for invoicing and payment processing.

We asked about plans to use an AP solution to address efficiency concerns. Fifty five percent have adopted a solution, while another 26 percent are either passively or actively seeking one.

Within the next year, 48 percent of those searching for an AP solution said they are likely to adopt one.

These were the leading motivating factors:

56 % Overall Efficiency

44% High Paper Volume

44% Slow Approval Process

Arguably the most glowing number for this industry is that only 6 percent of respondents plan to scale back operations until more certainty exists in the market. This demonstrates the optimism felt by both association managers and boards for the year ahead.

Before becoming Vice President of HOA Sales for AvidXchange, Tyler Gill served as CEO of Strongroom Solutions, an HOAspecific accounts payable automation solutions company acquired by AvidXchange in 2015. Leading up to his role at Strongroom, Gill spent more than two decades in leadership roles with organizations in the finance and technology industries, including Morgan Stanley and Silicon Valley-based networking software provider, Luminous Networks.