Question: I rent out a house in an HOA. My renter has sent me numerous emails about the neighbors letting their dogs run through his yard. I have spoken with these residents yet the complaints continue. How would you handle this issue going forward if you were the manager?

Answer: You have done the right thing by communicating with the neighbors first. However, since they did not respond appropriately, you should turn the matter over to the board for further action. Provide the board with the written evidence, dates, etc.

Question: Our current policy excludes wind damage and a recent tornado took out many of our large trees. Our board is considering purchasing wind damage insurance for our trees and shrubs.

Answer: Whether you buy wind damage insurance or not is a matter of cost. If it's cheap, buy it. But if the need for it is infrequent, consider establishing a five year reserve fund for Tree Replacement based on the last five years' expense. If you don't spend it, it's money in the bank.

Question: We are considering hiring a professional HOA management company. How are management fees determined? Is it similar to rental management?

Answer: HOA management fees are generally expressed as a flat monthly fee based on a charge "per door." The per door fee cost varies a lot based on the kind of services the management company is providing and which company employee is needed to execute a particular service (manager, bookkeeper, maintenance, office staff, etc.)

The management company generally estimates the average time per month it will take to attend meetings, generate financial statements, respond to calls and correspondence, enforce rules, inspect the property and other routine services the board contracts for. There is usually additional charges for special tasks like providing information to lenders, overseeing insurance claims, preparing for litigation, etc.

Since identifying what is and what is not included in a Management Agreement is critical to avoid misunderstandings, overcharges by the management company and unrealistic expectations from the board, having a well written and comprehensive Management Agreement is essential. Such is available in a customizable form at www.Regenesis.net in the Manager Issues section.

For more innovative homeowner association management strategies, see www.Regenesis.net.

Published: September 24, 2008

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Richard Thompson owns Regenesis, a management consulting company that specializes in condominium and homeowner associations. He is a nationally recognized expert on HOA management issues. Regenesis publishes The Regenesis Report, a monthly newsletter for HOA boards, developers and managers. To subscribe, go to Regenesis.net. He can be contacted by email at .