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JC: Aside from the granular detail, and as I have said before, the overarching role for me, for an HOA, has always been as an asset manager.
In this function, it is tasked with managing the facility, so that the estate is well governed to ensure that the assets are developed, and service levels evolve, with the key goal to at least maintain, but ideally, to enhance the value of the estate’s brand, and the value of property within its boundaries.
However, I often find that boards’ composition is often at ‘odds’ with the job at hand, which can lead to situations where an incumbent board will just kick the can down the road, for the next board to handle when it is appointed.
This can cause frustration for many residents, who might feel that their concerns are not being addressed, which in turn can often lead to the conflicts, and ‘politicisation’ of the HOA, as previously mentioned in this discussion.
What are your thoughts and or experiences in this regard?
LM: It is an ongoing challenge for many estates to find the ‘right’ people to serve on their board or committee.
By ‘right’, I mean those who possess the correct mix of skills sets, to provide the necessary balance for the decision-making processes, across the broad range of areas, which make up the ‘life’ of any estate.
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In a recent study, I read, the number of boards that apparently fail within the estate environment (internationally) is staggering.
The study goes on to show that successful boards are comprised of a range of personality types as you would find in Myers Briggs Profile.
Unfortunately, the reality is that it is tough enough trying to get residents to serve on a board, never mind putting them through a personality test!
With constant disruption at board level, you will often see that the first casualty is the estate’s brand.
JC: Almost all businesses, which is what a golf estate is, are highly organic (or should be!), and further development is an essential part, of what I like to term a managed and planned evolution.
This process will not use the approach of ‘oh look it’s not broken so let’s fix it!’, but rather one of enhancement, which is relevant to the changing market place and the needs of a particular estate’s community.
This evolution can involve the construction new facilities, or repurposing of existing infrastructure i.e., where an estate, with an ageing owner profile, now sets up a frail care centre or clinic, to the polar opposite, where the presence of an increased number of young families, requires programmes and facilities, such as a creche, which were not in the original ‘mix’ of options.
Looking at all estate types, what have you seen that really stands out in terms of the evolutionary process?
LM: Yes – the old adage ‘adapt or die’ is often very true, but in terms of your points about the HOA being an asset manager (with which I agree in part), over the last 12 years we have seen an interesting evolution driven by the investor.
Estate Living really started, by offering investors security (and it remains the cornerstone of community living), but progressed quickly to include lifestyle products like gyms.
Then running track and mountain bikes become popular, so they too were included in new developments.
Very soon many estates were no longer a ‘gated community’, but rather a resort-like establishment with features like concierge services. This in turn forced a change in the style of management. Management now required (it really should always have been there) an element of EQ and soft-skills to deal with people, as well as property element, which opened the door for women in a role of community management.
I have often overheard boards offering positions to male applicants, as they felt a female applicant, wouldn’t be able to deal with ‘fixing the security gate’!
But with the change in investor’s needs, an HOA team needed to offer multiple functions, and so the required skills diversified.
Communities are undergoing an evolution currently, as the importance of environmental management and self-reliance is highlighted due to water and power restrictions.
Investors are now looking for a community that is secure, family-friendly, has renewable energy and water purification solutions, gym, running track, MTB, fibre, WFH Offices and yes, a golf course.
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