Homeowners Association (HOA)

Homeowners Association (HOA) management teams leverage similar skill sets to those in the hospitality and tourism industries. It is essential to understand the intricacies and responsibilities that come with this role if one wants to learn about HOAs and potentially work in one. HOAs play a pivotal role in managing the communal aspects of residential communities, ensuring that they are well-maintained, financially stable, and harmonious.

Homeowners Associations are organizations in residential communities that make and enforce rules for the properties and residents. According to Foundation for Community Association Research, as of 2020, there are approximately 355,000 community associations in the U.S., housing about 73.5 million residents. This indicates the expansive role HOAs play in residential living.

HOA team members are involved in various tasks, including financial management. Financial management includes budgeting, setting HOA fees, managing funds, and financial planning for future expenses.is a critical component. An HOA’s budget is primarily funded by fees collected from residents. The average HOA fee falls between $200-$300 per month (Chen, 2023). These funds are allocated to maintenance, emergency repairs, and reserves. Effective financial planning is essential to avoid special assessments that can burden homeowners.

HOAs are subject to state laws and regulations. Compliance with these laws, including fair housing regulations, is crucial. Mismanagement can lead to legal disputes, which can be costly for the association. Learning legal and regulatory compliance is important to HOA professionals. Each country, state, city, region, state or province, municipality, etc. may have different HOA regulations. The regulations are not always HOA specific. For example, in the state of Washington, the Washington Condominium Act of 1990 (Wash. Rev. Code § 64.34, 1990), State civil rights laws (Washington State Office of the Attorney General, n.d.), Federal Flag Display Law (Wash. Rev. Code § 64.38.033, 2004), and numerous rights and responsibilities laws throughout the state need to be learned and adhered to if one is to effectively manage an HOA.

As the number of HOAs continues to grow, so does the need for dedicated, knowledgeable, and skilled professionals in this field.

Understanding the multifaceted aspects of HOA management is key to thriving in this career. It’s not just about enforcing rules or managing finances; it’s about creating and maintaining a community that residents are proud to call home. This involves a deep understanding of legal and financial aspects, excellent communication skills, and the ability to navigate complex interpersonal dynamics.

Timeshare and Vacation Rentals

The vacation ownership industry encompasses timeshare properties and private vacation home rentals, offering travelers flexible lodging alternatives. With over 9.6 million vacation ownership week equivalents in circulation in the U.S. and over a half-million full-time jobs in the global timeshare industry (Lindner, 2023), this expansive sector employs hundreds of thousands in roles from sales to hospitality.

Timeshare complexes grant owners predefined annual access, typically one week, at a fully-furnished resort property unit. Specializing in high-volume sales, marketing and hospitality, sales teams thoroughly communicate program details like maintenance fees, unit occupancy limits, trading options and financing during owner orientation sessions that typically last 90-120 minutes in length.

The average purchase price approached almost $23,000 in 2020 across more than 1,500 timeshare resorts worldwide (Lindner, 2023). Promotional pricing and low initial investments like $199 teaser fees often offset ongoing costs. With overall owner satisfaction rates above 65%, yearly maintenance fees averaging under $1,000 prove acceptable for predictable vacation access. Timeshare developers can also leverage economy of scale, passing savings from bulk furnishings purchases and centralized resort management to owners.

Various revenue streams sustain operations, including closing percentages from new sales, annual maintenance fees, financing interest and residuals from point rental packages. On average, sales representatives earn $100,000 base salaries (Talent.com, 2024), plus commissions and performance incentives at legacy developers like Marriott, Hilton and Disney.

Alternatively, the shared economy spawned digital vacation rental marketplaces connecting private homeowners with travelers, similarly to ride or home sharing platforms. Santa Barbara-based Vacasa managed over 22,000 rental properties by 2019, earning up to 25% commission per booking. The firm valued professional property management and localized expertise, leading to their acquisition of Canadian cottage rental company Wyndham Vacation Rentals for $162 million in 2019 (Hinote, 2019). Vacasa employs cleaning, maintenance and marketing employees across North America to service homes under management. Other leaders in space like TurnKey and VTrips likewise offer homeowners hands-off rental revenue options while guaranteeing quality stays for globe-trotting renters.

The analytics firm Grand View Research projected global vacation rental income would reach almost $110 billion by 2027, boosted by trends towards remote work flexibility and digital access (2020). The average nightly rates for private vacation homes in 2023 are over $300 (Hollander, 2024), enabling attractive income potential for managed private vacation homes actively marketed to travelers.

A number of determining factors increase appeal to both renters and homeowners from leveraging this hands-off income option over alternatives like hotel stays. From entire homes allowing families or groups to comfortably stay together to home-y amenities perfect for remote work, private rentals promote social connection, productivity and convenience across longer average stays than hotels.

Meanwhile home security advances like smart locks and cameras alleviate homeowner concerns while increasing confidence for remotely monitored properties. Local destination expertise from specialized property management teams enhances both in-stay experiences and home owner guidance on optimizing assets.

With over 50% of American workers earning income beyond main jobs in growing side hustles and alternative revenue streams (as cited in Tarkazikis, 2023), vacation property leasing and associated management underpins an entire asset-lite travel industry relying on sharing economy trust and smart technology.

The wide range of opportunities powering joint economic and travel efficiency for remote workers, families, couples or groups signals enduring momentum. Orienting around the same core hospitality principles governing hotels, combined with uniquely personalized spaces facilitating deeper destination connection promises sustained industry growth and jobs catering to an evolving, adventure-seeking audience.

Attributions

1. Figure 10.15: Growth of Homeowner Associations in the U.S. by Ezra Leigh, for WA Open ProfTech, © SBCTC, CC BY 4.0