HOA board members are acutely aware of the value their organization adds to the condo property and its residents. The decisions they make are directly related to the success of the community and have a significant impact on property values.
From maintaining amenities and infrastructure to setting rules that enforce consistent standards, understanding the role HOAs play is essential to maximizing profits in the long run.
Today, we will discuss several ways HOA boards can boost condo property values and avoid devaluation over time. Some of these tips might seem like common sense, but when you make them a priority, it establishes a sustainable foundation for continued success.
11 Tips HOA Boards Can Leverage to Increase Condo Property Values
HOAs are responsible to their residents, but their decisions benefit the entire community. Happy people attract happy people, and the next thing you know, your neighborhood is where everyone wants to be.
1. Understand what today’s condo buyers want
Understanding what buyers want is crucial for anyone in the real estate market. Safety, comfort, beautiful surroundings, and modern, well-maintained amenities such as fitness centers, secure parking, pools, and green spaces are all highly desirable. Moreover, the pandemic has influenced many buyers’ priority lists to include more versatile floor plans, home offices, outdoor areas, and green amenities like on-site electric vehicle charging stations. Anticipating what buyers want helps you deliver on expectations and will increase interest in your property from the people you most want to attract.
2. Use landscaping to make your property shine
Never discount the value of curb appeal! The exterior of your property is the first thing potential buyers will see, and it can significantly impact their overall perception of the building. Invest in professionally-designed landscaping incorporating elements such as gardens, pathways, and outdoor lighting to create an inviting atmosphere and add an extra touch of elegance. Meticulously manicured gardens and outdoor spaces add a touch of luxury and show that you are committed to maintaining a beautiful environment.
3. Keep up with maintenance in common areas
First impressions count for a lot. Your common areas should be as well-maintained as any other part of the property, inside or out. Fresh paint, well-lit hallways, fresh-smelling inside air, clean carpets and floors, and windows that sparkle speak volumes to visitors and help them imagine themselves living there. If common areas don’t live up to the suite’s quality, buyers might choose another building over yours.
4. Stay current with technologies that bring convenience and added value
As the world evolves, so do the technologies that shape our lives. Access to the latest advancements can be an attractive selling point for residents and potential buyers. From smart home tech to connected security systems to EV charging stations and solar power, there are countless ways to leverage technology to the condo’s advantage. The HOA should try to stay on top of new technology to ensure their communities have the tools they need to thrive.
5. Be inviting to pet owners
As a pet owner, finding a genuinely pet-friendly building can be challenging. A welcoming atmosphere that caters to animals invites a caliber of people who are often healthier, happier, and more empathetic. Think about ways to appeal to pet owners with fenced off-leash areas and dog washing stations, or if your building has mixed-use retail, seek out a grooming business or doggy daycare as a tenant.
6. Maintain an orderly environment
Every HOA has rules and regulations, but some can be quite loose about enforcing them. Details like where residents are allowed to park, noise restrictions, smoking areas, and tenant conduct policies provide peace of mind for potential buyers, keep residents happy, and help maintain the property’s value and beauty.
7. Be renter-friendly
Many condo buyers want the option to rent their unit at some point in the future should they decide to move, buy a house, or if their circumstances change. Prohibiting rentals may eliminate many potential buyers because they want that flexibility. The HOA can, however, control the conditions under which a condo owner may rent, such as placing caps on how much an owner can charge for rent and prohibiting short-term rentals like Airbnb. Rentability increases demand, and high demand for a building will increase its value.
8. Pay your bills, build your reserves
If the condo association is in arrears or can’t pay its bills, it doesn’t look good to potential buyers. Many buyers today will want to know these details and may go elsewhere if the outlook is not favorable. If they decide to take a chance, they could negotiate a below-market price for the unit to compensate for the risk.
9. Be good neighbors
New buyers might have trouble getting a mortgage if the HOA has active lawsuits or has a history of conflict with residents. Many lenders won’t consider granting a mortgage on a property that is involved in litigation or legal action of any kind.
10. Provide on-site emergency and live security services
Offering 24/7 emergency services and response gives buyers peace of mind that the HOA is always looking out for its residents. Whether it’s a live security presence, around-the-clock video monitoring, or simply having a detailed emergency and disaster response plan on hand shows that you are prepared for anything and there for them whenever they need help.
11. Reassess vendor relationships
Costs are rising for pretty much everything, as are wages. To maintain value for condo owners, HOA boards should take a proactive approach to maintaining vendor relationships. Ensure you are paying a reasonable price for contracted services and not paying for services and features you don’t use. Doing so may help you keep costs under control, so you don’t have to raise condo fees any more than you must, despite inflation. Demonstrating to residents that you are looking out for their best interests is an excellent way to build a good reputation in the community.
