As the backbone of many residential communities, Homeowners Associations (HOAs) have unique financial needs and face many operational challenges. From managing high volumes of transactions to ensuring fiscal discipline to meeting the needs of the communities they support, HOA management companies require access to specialized banking services.

BankUnited’s National HOA & Property Management Group understands the needs of HOAs and property managers and has a team of real estate professionals dedicated to the sector. “Our group is special in the fact that we all come from extensive backgrounds in real estate operations and accounting,” explains John Redmond, SVP and Relationship Manager with BankUnited’s HOA & Property Management Group.

This deep industry knowledge allows BankUnited to deliver customized solutions, which includes tackling the most common challenge of managing diverse financial packages for each HOA community. “HOAs have a fiduciary duty to their communities to provide timely monthly statements and help guide their communities to the best solutions for those boards, whether it be rates for reserves or anything that will provide operational efficiency, or possibly new revenue streams for the communities,” notes Redmond.

In addition to discrete financial packages, HOAs must address market-specific issues. “In Florida, where insurance premiums have skyrocketed, or when you need a new roof and you are required to levy a special assessment for millions of dollars, having a proper financial projection of the community’s needs minimizes the likelihood of surprises,” says Redmond.

Another critical area for HOAs involves the proper management of reserve funds. “A well-funded reserve ensures that the community can address future expenses without imposing special assessments or running into financial hardships,” explains Redmond. “You also want excess funds earning at a competitive interest rate, so it is working for you.”

While maintaining adequate reserves at competitive rates is important, so is protecting those funds from unauthorized access. Fraud prevention is also a crucial area for HOAs. BankUnited provides a variety of fraud prevention tools, including Payee and Reverse Positive Pay, ACH alerts and ACH blocks. Additionally, the bank has robust security processes to authorize wire transfers.

Beyond fraud prevention, BankUnited also focuses on operational efficiencies for HOAs & Property Management companies. “As a team, we've built custom API integrations directly with the ledger systems that power the HOA market, so we have direct integration with most of the largest software companies that support the daily operations and accounting of HOA management companies,” says Redmond.

For many HOAs, such integration is a significant time saver. “Our job is to give HOA staff their day back through software integrations so that they can handle the things that software can't handle, such as picking up the phone and talking to a homeowner when they have an issue,” adds Redmond.

Technology is at the heart of the changes impacting the sector, and BankUnited’s team is ideally positioned to help as the HOA management industry evolves. This is why BankUnited’s team includes extensive real estate accounting experience. “In the last ten years, there’s been a rush to embrace modern accounting practices and operational efficiency. Software systems have landed in HOAs and allowed for much more sophisticated companies to rise to the top,” notes Redmond.

By providing white-glove service backed by deep industry expertise, BankUnited’s HOA team can help clients navigate the industry's steady stream of challenges while preparing for new opportunities.

“Our vision is white-glove service, operational efficiency, and a group of highly knowledgeable people specific only to this industry,” says Redmond. “We are not banking restaurants. We're not trying to call on insurance companies or anything of the sort. We are exclusively dedicated to the industry we've all worked in for many years.”

To learn how BankUnited can help your HOA navigate financial challenges and enhance operational efficiency, visit our HOA Banking Solutions page today. Discover specialized banking services tailored to the needs of your community.