Inside the HOA

Irvine is a patchwork of neighborhoods ruled by HOAs (Homeowners Associations). If you live in Irvine, you know the acronym well. Each HOA, comprised of a small board of elected members, tell us what we can and cannot do with our homes based on governing documents we don’t bother to read. But these HOA board members, who volunteer their time, cannot possibly do it all. They typically hire a community management company to take care of the details.

Karrie Daugherty is a Certified Manager of Community Associations who has spent over fourteen years in the industry. She also runs the newly launched Coastal Management & Consulting community management company. Daugherty connected with The Vine to explain what a community management company does and how not to run afoul of your HOA.

“We take care of the financial assets and common areas of a community,” says Daugherty. “It is our job to ensure HOAs are adhering to their governing documents, both the bylaws and CC&Rs (Covenants, Conditions and Restrictions). We also act as a liaison between the board and homeowners.”

It is liaising between homeowners and their HOAs that can be the most challenging.

“Let's say somebody paints their house without going through the architectural process,” says Daugherty. “Then that results in the homeowners association sending the homeowner a violation letter, usually for architectural violations. There's an automatic penalty. You find a lot of homeowners do not read their mail or do not pay attention to these letters. Then all of a sudden they look at their statement. They're thinking, ‘Oh my goodness, I owe five thousand dollars. What is this?’ They're frustrated right off of the bat.”

Community management companies can send notices but cannot force homeowners to read them. Daugherty says it sometimes takes residents a full year before realizing they have a problem. She says part of the issue stems from an abundance of paperwork that new homeowners receive.

“When you're buying your home, you have all these documents that you're given at the time of your purchase, and who reads them?” Daugherty says. “But then you’re unaware of the rules and regulations and the processes that you need to go through, especially architecture. That's the biggest one. That and maintaining your front yard or your trees.”

Daugherty explains that the lack of understanding is compounded by a lack of communication.

“When a homeowner buys a home,” explains Daugherty, “they’re super excited. ‘Oh my gosh, our first house’ and ‘Oh, let's build a fence and we'll make it vinyl.’ They start making improvements and then come to find out that they needed to go through a process in order to do that and be approved. So there's just a lot of miscommunication or misunderstandings.”

Daugherty has recommendations for keeping homeowners out of trouble.

“If we would all slow down and just take the time to ask questions and understand the processes, it really would be beneficial for everyone involved,” says Daugherty. “Ask what you need to do before you do it. Otherwise it becomes this very frustrating process.”

When homeowners do get frustrated, a community management company can become the target of vitriol.

“It's your home but you have to follow the rules,” says Daugherty. “We have to educate them. ‘This was what you were supposed to do before you went to build your fence, and that's why we're having this issue now.’ Usually it's compliance issues. But the word spreads. It's like when you go to a restaurant, and you get bad service or the food is terrible. You leave that restaurant, you tell probably like ten or twelve people, ‘Oh, my goodness, don't go there,’ and then you're putting it on Yelp. It happens where someone gets on a management company’s Yelp and people tear us apart. They don't understand that it's not me that's fining you. It's the association for the board of directors who are making the decisions. So there's just a lot of misunderstandings.”

Daugherty relies on her communication skills and tries to empathize with the injured party when she works with an irate homeowner.

“Typically, when there are lawsuits or difficult situations, I partner with that homeowner and I try to figure out how can I help them,” Daugherty says. “How can I prevent more issues? How can I improve this process? There is honestly a lack of care in our industry at times. These are people's homes. This is your life, right? We as managers need to understand that this is your home, your investment. ”

Wondering if your community management company is doing its job? Daugherty shares how to assess your property management company’s effectiveness.

“Communications are crucial,” Daugherty says. “Your community management representative should respond to you in a timely manner. When you do get a response to a question, you should understand the answer provided to you. Explanations should be clear. You should get the sense that they care and want to support and assist you.”

Daugherty says it’s the caring part that makes all the difference.

“We literally can make a huge impact on communities just by being kind, caring, understanding. And explaining and educating along the way when there's an issue. Together we can make a difference.”

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