Serving on an HOA board in South Bend, Mishawaka, or greater Michiana can be rewarding, but it's easy to make costly mistakes. We've seen these patterns repeatedly across communities in our area. Here are the most common missteps and how to avoid them.
Quick overview
According to the Community Associations Institute (CAI), while 89% of homeowners rate their overall HOA experience as "good" or "very good," most board problems fall into five categories: poor communication, inadequate budgeting, inconsistent enforcement, maintenance delays, and legal oversights. Each can create costly headaches, but they're all preventable with the right approach.
Understanding the difference between property management and HOA management is crucial when addressing these challenges, as boards need specialized expertise rather than generic rental property services.
The 5 most frequent mistakes
1. Failing to communicate regularly with homeowners
The mistake: Boards that only communicate when there's a problem or special assessment.
Why it hurts: Residents feel excluded from decisions affecting their property and daily life. This breeds distrust and makes future board initiatives much harder to implement.
The fix:
- Send quarterly newsletters or emails
- Hold annual meetings beyond the required minimum
- Create a simple community website or Facebook group
- Share budget updates and upcoming projects proactively
2. Underestimating reserve fund needs
The mistake: Setting aside too little money for major repairs and replacements.
Why it hurts: When the roof needs replacement or the parking lot requires resurfacing, you're forced into special assessments that can cost homeowners thousands.
The fix (Industry best practices):
- Conduct a professional reserve study every 3-5 years ($3,000-8,000 investment)
- Budget 25-40% of annual dues for reserves (industry standard range)
- Aim for 70% minimum funding level, with 100% being ideal
- Plan major expenditures 3-5 years in advance to avoid special assessments
Many boards struggle with effective budget planning, particularly understanding Indiana's specific legal requirements for reserve fund management.
3. Inconsistent rule enforcement
The mistake: Enforcing covenant violations selectively or not at all.
Why it hurts: Creates perception of favoritism, undermines property values, and can lead to legal challenges.
The fix:
- Document all violations consistently
- Apply rules equally regardless of personal relationships
- Create a clear violation process with timelines
- Consider hiring a management company to handle enforcement objectively
4. Delaying routine maintenance
The mistake: Putting off small repairs to save money in the short term.
Why it hurts: According to maintenance studies, deferred maintenance costs 3-5 times more than preventive care. A $500 gutter repair becomes a $5,000 foundation problem within 18-24 months. This is especially critical during harsh Michiana winters when snow removal and winter maintenance delays can compound into major structural issues.
How to implement preventive maintenance:
- Schedule comprehensive annual inspections of all common areas (spring and fall)
- Address problems within 30 days of identification
- Allocate 5-10% of annual budget specifically for preventive maintenance
- Maintain detailed digital records with photos and completion dates
5. Operating without legal guidance
The mistake: Making decisions without understanding Indiana HOA law or your governing documents.
Why it hurts: Boards can face personal liability, expensive lawsuits, or have to reverse costly decisions.
The fix:
- Consult an HOA attorney for complex decisions
- Review your CC&Rs, bylaws, and local regulations annually
- Attend HOA education workshops
- Consider professional management for legal compliance
Red flags to watch for
- Board meetings without minutes: Always document decisions
- Budgets created in isolation: Get homeowner input on major expenses
- Emergency repairs happening repeatedly: Sign of poor planning and inadequate reserve fund management
- High board turnover: Often indicates systemic problems
When to get help
If your board is struggling with any of these issues, consider professional HOA management. A good management company handles enforcement, maintenance scheduling, legal compliance, and communication — letting your board focus on community vision rather than daily headaches.
Understanding the difference between property management and HOA management is crucial here - you need board-focused expertise, not rental property management. Professional management becomes especially valuable for winter operations and budget planning, where specialized knowledge can prevent costly mistakes and liability exposure.
Simple next steps
- Audit your communication: When did you last update homeowners?
- Review your reserves: Do you have 3-6 months of operating expenses saved?
- Check your enforcement: Are violations being handled consistently?
- Schedule maintenance: What's been deferred that shouldn't be?
- Legal review: When did you last consult an attorney about your operations?
Frequently Asked Questions
Q: How much should our HOA budget for reserves annually? A: Industry standards recommend 25-40% of total annual dues for reserves. Your reserve fund should aim for 70% minimum funding, with 100% being ideal to avoid special assessments.
Q: How often should HOA boards communicate with homeowners? A: Best practice is quarterly formal communication (newsletters/emails) plus annual meetings beyond the required minimum. Emergency communications should go out within 24-48 hours.
Q: What's the average cost of hiring professional HOA management in Indiana? A: Management fees typically range from $10-50 per unit per month nationally, with most standard services falling in the $10-20 per unit range. Costs depend on community size, location, and scope of services.
Q: How can boards avoid personal liability for HOA decisions? A: Follow proper procedures (documented meetings, majority votes), maintain adequate insurance, consult attorneys for major decisions, and ensure all actions comply with CC&Rs and Indiana state law.
Q: What are the most common types of legal challenges HOAs face? A: The most common lawsuits include breach of fiduciary duty, discrimination claims, architectural disputes, financial mismanagement, and election disputes. Most legal issues are preventable with proper procedures and professional guidance.
Need help implementing these improvements in your Michiana HOA? Contact 1hoa for a free consultation on professional management services that address all these common board challenges.
Talk with a local HOA manager
If your board wants clearer budgets, faster vendor response, and consistent enforcement, we can help.
