Branching out into the housing market
There are many businesses and companies considering branching out into the housing development market. Financially, it is a no brainer, investing money with banks is currently risky due to economic crises across the world. Additionally, the interest rates are at an all time low and even with extremely large sums, the payoff is minimal compared to other potential financial ventures.
Investments in housing, however, seem a lot more promising and many housing companies consistently top the charts for the highest profits in local areas.
Despite the huge potential payoffs available, it is clear that venturing out into the housing world is not a simple step. There are an array of factors that will need addressing and managing and many would advise that it is not a field that inexperienced people should venture into without doing a huge amount of research and analysing various case studies.
Here at BlindInBusiness, we would like to suggest that taking a step into such a new field is one that should be done slowly. We would like to provide several bite sized articles on various factors involved with the housing industry and offer tips on these different subjects.
Managing a Homeowner’s Association
If you choose to specialise in housing developments such as apartment blocks or condominiums you will, at some stage, need to consider how to run a homeowner’s association.
Homeowner’s associations are compulsory within every shared building and as the housing provider you will need to ensure such a service is available to your future residents. These associations will have elections on various directors, documents, recalls, etc. which means that you will need to make sure everything is all above board with Professional Election Inspectors so that you are running things effectively and efficiently.
As part of your responsibilities you will need to maintain all public spaces, amenities and settle neighbourhood disputes. If a homeowner’s association is poorly managed it is likely to have extremely serious consequences for all parties involved. There have been many heavily publicised cases in which housing providers have received large fines and the tenants themselves have been evicted.
With all of this at risk, you may want to consider outsourcing your project’s homeowner’s association to experts that you can trust. They will be able to take the lead in areas that need specific attention. For example, if there is a pest issue in the neighbourhood such as squirrels, they will call in Squirrel Removal services that will be able to deal with the problem effectively without prolonging the issue.
Outsourcing this responsibility
If you are inexperienced in managing a homeowner’s association many would advise to seek professional help from a business which has a strong reputation. For example, a service such as Cedar Management Group – HOA Management in the Carolinas, can help to provide you with all the tools you need for a successful homeowner’s network.
What services can they offer?
A homeowner’s association management group can offer a plethora of services. These include dealing completely with your community management. They offer legal assistance, maintenance of the property and can deal with violator. They can also support you with accounting and collecting payment from residents as well as any additional value added services you might choose.
Our recommendations
We would strongly advise any business stepping out into the world of housing to seriously consider getting expert help in regards to looking after your tenants and prospective buyers. Since such people are your biggest source of income you really cannot afford to allow them to become unhappy as this can lead to expensive legal battles. Unless you are extremely proficient in providing a service that can act as a homeowner’s association, it is vital to outsource this work to professionals that are experienced in the field.
