Our Industry's Bad Rep

LET’S WORK TOGETHER TO CHANGE REALITIES AND PERCEPTIONS OF THE HOA INDUSTRY.

By Todd Greisen, CCAM

Let’s face it. Often times, the public view of HOAs is not good. When meeting someone for the first time, I’m sometimes hesitant to share what I do for a living – manage an HOA. The polite ones won’t say anything. Some respond with a smirk. Worst case, they take it as an opportunity to rant about how they’re mistreated by the association where they own a home.

I know of realtors who, as a standing rule, will not sell a property or represent a buyer where an HOA is involved. I’ve driven by developments under construction with a sales banner posted “NO HOA.” There are also vendors who refuse to work with associations.

WHAT DO THESE THINGS SAY ABOUT OUR INDUSTRY?

We’re tarnished, and perception is sometimes reality. There are HOAs that abuse or under-perform, when it comes to the powers and obligations given to them in the association’s documents. Even abbreviating them as we all do, CC&Rs, can take away from their value. Truly, they are Covenants, Conditions & Restrictions for good reason – each word having significance. When they or overarching laws are under-valued or abused, our industry is impacted negatively.

But at the same, perception also outlives reality. Real change takes time. We, as managers and board members, can and should do our part to make changes that ultimately affect the perception of HOAs. Being a member of CACM or other industry organizations helps maintain and improve our professional image, but what else can we do?

START WITH THE FOUNDATION

Managers and boards have unique roles and motivations. Managers get paid, hopefully well, because of the excellent service provided to the community(s) that we serve. Do you strive for excellence in all that you do? Board members volunteer, because they are owner/ stakeholders, hopefully in a way that is not self-serving but for the community as a whole.

Both roles require accountability and ethical behavior. From a CC&R perspective:

A COVENANT IS A PROMISE.

Do you keep them? Do you return owner phone calls and emails in a timely manner? Do you hold vendors to their promises and keep yours to them?

A CONDITION STATES A RESPONSIBILITY.

Do you do what’s expected and when it’s expected? When the grass goes unmowed for a month, is that on the HOA’s checklist or the homeowner’s?

A RESTRICTION LIMITS WHAT YOU CAN OR CAN’T DO.

Are you abusing given limits of power and control? These abuses are most often the cause of the industry’s tarnished reputation.

If you answered all these honestly and positively (yes, yes & no), great! These are the objective minimums for managers and board members. But, the black & white of CC&Rs are only the foundation of solid HOA leadership.

BETWEEN LINES OF FACTS ARE FEELINGS.

An owner who doesn’t agree with a rule won’t be fully satisfied with the fact in the document. They will leave the meeting or hang up the phone still angry. Residual anger turns into resentment and will only feed the flame of our industry’s reputation. It will be vented with other disgruntled neighbors, keyed with all caps on social media, and continue the feeling of many – that all HOAs are evil.

When quoted, CC&Rs can provide individual answers but do not always change perceptions. Emotionally-charged situations sometimes color the rationality of rules and contracts. Feelings are subjective and a gray area for HOA leadership and management.

Knowing the rule and understanding its value gives you the ability to explain why it’s in the CC&Rs. Additional understanding comes with knowing the benefits for all community owners to abide by it. It’s “Sales 101.” People buy (or agree) based on emotions first. Facts are secondary, serving to rationalize the emotional decision to buy or agree. Do you sell compliance, or just argue it?

COLOR GRAY AREAS WITH SOLUTIONS.

Acknowledge emotions being expressed. Owners want to be understood just as much as you do. Seek solutions that address the emotions. Can the owner still abide by the rule with an alternative that fills the need of compliance and wants of the owner? Invite them to provide a possible solution that fits within the need of CC&R compliance.

Set a personal goal to end every disagreement with the minimum of a stalemate. If a solution doesn’t present itself immediately, ask for time to give the problem some thought. Have an executive session to brainstorm solutions. Unlike dismissing an argument with simple facts, this sends a message that you’re taking the concern seriously. It also provides a future opportunity for reasonable and calm conversation.

Become the person you’d like to have leading your community, and have the reputation that you admire in others. Make a difference in the HOA industry!

Todd Greisen, CCAM

Todd Greisen, CCAM, is the General Manager of Contra Loma Estates in Antioch, California.