5 Common Board Member Mistakes to Avoid

Serving on the board of a homeowners association can be a fulfilling experience. Many members enjoy being active volunteer leaders, assisting neighbors regarding association matters, and getting to know their community better.

Most board members take their position seriously. However, there are a fair number of potential pitfalls and possible liability issues if a board member isn't careful. For these reasons, it can be a huge advantage to work with a community association manager who can help board members avoid snags and ensure the association runs smoothly.

Here are some of the common mistakes association board members should avoid.

1. Holding Unapproved Meetings

Document all board meetings and provide a notice to all homeowners. It is considered a board meeting any time a majority of the members get together and speak about association business. Board members may get together for a casual lunch or similar gatherings and talk about board business, not realizing this could violate association law. 

Talk with your community association manager to help clarify what is appropriate to discuss with other board members when no official meeting occurs.

2. Not Following Governing Documents

Sometimes boards don't carefully read the community's governing documents and then fail to abide by them. This problem typically occurs when a new board is elected, and they neglect to review the association's declaration and bylaws. This mistake is usually unintentional, but it can cause a lot of issues. Every board member should read the bylaws and all other association documents.

3. Mismanaging Association Funds

It is all too easy to use bad judgment when it comes to managing association funds. A common mistake is to spend too much too quickly without leaving anything for emergency maintenance or repairs. 

Board members also should consider long-term finances. While an HOA board may want to use funds on things that may seem important in the short term, it is imperative to think of the community's future needs. It would be wise to go over prior-year budgets and learn from them. Community association managers can provide guidance and advice throughout the budget review process to ensure a reasonable rate for completed work. 

4. Becoming Bossy

Board members are generally excited to be in their position, and often they can make big decisions too quickly. It is always best to weigh any significant policy changes carefully. For example, a new board may decide to change vendors, believing it is in the association's best interest, but will lose momentum on all ongoing projects. Take time to speak to your community association manager. If you are unhappy with someone, he or she can give you advice about better vendor contracts and how to make changes within the community.

5. Not Seeking Legal Advice 

You will find there are situations when to consider legal advice. Community association managers are not lawyers, so they may not provide legal advice to clients. Suppose you are dealing with a situation with a homeowner that could turn into a lawsuit. In that case, it may be best to work with the association's attorney for advice and procedure. Consider that the expense of the attorney may well be far cheaper than the potential legal liabilities.

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Being a board member is a tremendous responsibility and requires essential decision-making skills and judgment. It can be easy to make common mistakes that can cause significant issues in the future. Contact your local association company—Condominium Associates—to learn more! Maintaining a good relationship with your community association manager is an excellent way for your community to operate efficiently.