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To safeguard HOA dues and property values in Northeastern Tennessee, your board must vet management firms thoroughly by checking credentials, demanding transparency, and regularly verifying fund controls—partnering with trusted brands like Arbella Properties Inc Community Association Management.
Protect Your Community’s Funds: How to Vet and Monitor Property Management Firms in Northeast Tennessee
When it comes to managing your community’s finances, “trust but verify” isn’t just a slogan—it’s a survival strategy for HOA boards across Northeast Tennessee. Reports of missing funds in our region underscore the urgent need for strong vetting, oversight, and accountability from your property management firm. As a board member, you bear the responsibility to protect every homeowner’s investment—and that starts with vigilant management and high standards.
Why Robust Vetting Matters for Your HOA
Recent investigations show multiple HOA associations in Tennessee have lost significant sums due to lax oversight and poor controls at property management companies. This isn’t just a Nashville or Memphis problem—it’s happening in smaller cities and rural communities, making it especially relevant for boards in Northeastern Tennessee. Protecting your association’s funds isn’t optional; it’s core to your fiduciary duty.[1]
Step-by-Step: How to Vet a Property Management Firm
- Demand Credentials and Proven Experience
- Verify their license status and check for any disciplinary actions with the state real estate commission.
- Get references from similar communities in your area.
- Insist on Financial Transparency
- Require monthly financial reports—including reconciled bank statements and transaction details.
- Ensure the firm uses segregated accounts for your association’s funds (never commingled with other clients).
- Schedule quarterly audits with an independent CPA.
- Review Management Agreements Closely
- Scrutinize contracts for clear language on fund handling, access, and reporting frequency.
- Confirm the firm’s obligation to alert the board of unusual account activity.
- Check Technology and Controls
- Ask about digital payment systems, fraud prevention protocols, and how homeowner payments are tracked.
- Confirm process for larger disbursements.
- Monitor Regularly—Don’t “Set It and Forget It”
- Establish a finance committee to review all reports monthly.
- Rotate board members’ oversight roles so there’s fresh review and accountability.
Warning Signs of Poor Fund Management
- Delayed, confusing, or missing financial statements
- Vague answers about account activity
- No independent audit policy
- Negative references or consumer complaints online
If you see these, raise the alarm—and consider switching management immediately.
How Arbella Properties Inc Community Association Management Protects Your Funds
As a provider in Northeast Tennessee, Arbella Properties Inc emphasizes:
- State-certified financial controls
- Transparent monthly reporting
- Experienced staff with CAI designations
With rising incidents locally, choosing a firm that leads in trust and financial oversight is the best way to protect your association.
FAQ
Q: Can our HOA recover funds if mismanagement is discovered?
A: Recovery is possible if there’s insurance (fidelity/bonding), but immediate action and documentation are vital.
Q: How often should the board audit financials?
A: At minimum, quarterly—with monthly internal reviews.
Q: What reporting should a management firm provide?
A: Itemized income, expenses, reconciled statements, and digital account access for the board.
Resources and Further Reading
- [Multiple instances of missing HOA money exposes lack of Tennessee property management regulations — NewsChannel5 (2025)]
- [Financial Management in HOAs in Tennessee — State Regs Today (2025)]
- [CAI — Community Association Institute: Vetting and Working with Association Management Firms]
Ready to protect your HOA from mismanagement? Schedule a consultation with Arbella Properties Inc Community Association Management and empower your board to safeguard every homeowner’s investment.
By Megan Hensley, Community Association Manager, Johnson City TN, Arbella Properties Inc Community Association Management