There are many moving parts when it comes to running an HOA. Since the board cannot realistically do everything on their own, they often hire property managers and contractors to help with the work. Maintenance of common areas, small and large repairs, building projects, landscaping, and much more require HOA attention and often involve partnering with outside resources. In a new statement to the press, Kuester Management Group sheds light on the importance of ensuring contractors are licensed.
“Finances are often top-of-mind for HOAs,” says Bryan Kuester, President of Kuester Management Group. “The board wants to be mindful of its spending to stay within budget and keep assessment increases at a minimum. But opting for unlicensed service providers is not the place to cut costs. If someone is injured on the job, costs can quickly skyrocket, far exceeding initial savings.”
Contractors often charge less if they are not bonded, insured, or licensed. However, this can spell trouble for the HOA. The chances for injury or damage may seem slim, but one never knows what may happen. It is safer to pay a little more for a company with a quality reputation and the paperwork and credentials to back it up.
Kuester encourages HOAs to do their research before hiring a contractor or other service provider. Check out their reviews, look for any complaints that have been filed, and ask about protections that they provide such as licensure and liability insurance. Ask the property manager if they have recommendations on providers that they are familiar with and have partnered with before. Property management companies often network with different companies to provide high quality service and support for HOA communities.
A licensed contractor must carry insurance for themselves and their employees. If they are doing work in the HOA community and someone is injured, the HOA is not liable. Unlicensed contractors may or may not have the proper insurance coverage in place. If any injury occurs, the HOA could end up picking up the bill.
Licensed contractors are often more conscientious about filing the property permits and documents when completing work because they don’t want to risk their license. This can provide the HOA with greater peace of mind, though it’s still important to research the company as well and check references.
“It’s not usually worth the risk to hire an unlicensed professional when there are so many quality contractors to choose from who do have the proper credentials, licenses, and insurance,” says Kuester. “The HOA is responsible for protecting the best interest of its members and their property, so it only makes sense to hire a reputable, licensed contractor for any work that needs to be done. You may pay a little more upfront, but it can lead to cost savings in the long run.” Kuester Management Group supports HOAs in selecting quality service providers.
Kuester Management Group, a division of Kuester Companies, works to protect property values and enhance the quality of life in each of its managed communities. Providing a full range of association management services, Kuester Management Group has worked to foster strong, resilient, and unified communities across North and South Carolina. The company is proud to offer on-site property managers, all zealous for building strong communities meant to stand the test of time.
More information is available at www.kuester.com or @KuesterCompany