Colorado HOA Management

Most Americans would be surprised that the State of Colorado has one of the highest numbers of residents living in HOAs.

Known for its majestic mountains, wilderness, outdoor adventure and freedoms, it is home to the 4th highest level of homes contained within homeowners associations.

According to CAI's research, 40.1% Coloradans now live in a homeowners association. Only Florida, Delaware, and Vermont have a higher percentage. 

Population growth in the state was brisk with one report showing 750,000 people moved here between 2009 and 2019.  Since 2020 however, growth has levelled off likely due to the cost of living and lack of available housing.

Of course, Colorado's beautiful natural landscapes, clean air, and outdoor recreational opportunities keep it in the dreams of many Americans, especially Millennials and Gen Z home buyers. If you're planning an HOA in Colorado or need to modernize your current one, let's explore what you should know.

Colorado HOAs Getting Positive Reviews: CAI

And according to CAI, Coloradans are very satisfied with their HOAs with 70% of residents rating their HOAs as good.  71% believe the HOA's rules help protect their home value.  49% feel their overall living experience is very good.  78% believe their HOA board is acting in their best interests and 71% would like to see no change with community association oversight. Only 32% said the HOA rules make no difference to their property values.

Before we accept the perfect situation report, managing HOAs is challenging and events do happen.

This YouTube video below shows how bad weather events create catastrophic cost situations for conjoined units which have insurance coverage limits. Risks abound in HOAs and it's not a waste of time to review news events and the comments of Colorado home owners you'll find YouTube comments.

Colorado HOAs Must Modernize Too

While there are new homeowners associations being formed in Colorado, there are many that need to upgrade how they're managed and how they present services to residents.

Residents don't often understand trends in how cities and communities are financed and managed, and thus may not see issues or crises just ahead. Education, persuasion, and trust building are always part of the job.

A growth of Millennials and Gen Z buyers is just ahead as mortgage rates fall. HOAs will have to meet different expectations and increase efficiencies.  

Efficiency remains the top concern in association management. The demand for efficiency is driven by less funds, more regulation, more debt financing, and more expectations for amenities and services.

With respect to efficiency and costs, many Colorado HOAs have yet to update their technology. New technology allows staff to do more, help boards make better decisions, and help build reserves for infrastructure improvements, new amenities, and meet data security mandates.

Data Security is no Insignificant Matter

Many of these HOAs will suffer their first data hack which can bring a business down.  And it can frighten homeowners who have had their their personal and financial information exposed, including bank accounts, credit cards, and messages. Upgrading to bank grade security is vital as criminals scan for system vulnerabilities. Modern software, which many HOAs still don't use, is suited to the task.

And while Colorado HOA residents may be currently satisfied, it doesn't hurt for them to be more involved, better informed and able to manage their own documents.

Laws Governing HOA Operation in Colorado

HOAs in the state are governed by the Colorado Department of Regulatory Agencies (DORA), specifically the division of real estate. You'll find the formal rules and regulations on their website including licensing fees, governing documents, record retention rules, and insurance needs. Registration for a Colorado HOA is only $43 annually, but must be made otherwise, a lien against property owner's property cannot be made. Use this link to discover the registration process and this link to learn more about the financial requirements in setting up and operating an HOA in Colorado.

See more on the specific state laws for Colorado HOAs.

The demands of residents in your HOA in Colorado shouldn't be taken for granted. 

If you are launching a new HOA, refer to the Illinois HOA page for info on how to create and launch a  homeowners association. The rules pertaining to Colorado are unique of course.

Technology Solving Problems and Preventing More

Be practical and well prepared when launching a homeowners association in Colorado. Your research will enlighten you on the need for professional grade software technology and how it can keep you onside with State laws and resident expectations.

New affordable, SaaS and cloud powered platforms (i.e., ManageCasa™) give you a better financial and operational foundation to deliver efficient services and empower you to deliver the service levels Colorado HOA residents may expect going forward.

Learn more about HOA accounting features, online dues and fees payment, online voting, and how easy it is to switch to ManageCasa.

Contact our team to begin your journey to modernization!