One issue that homeowners associations of all sizes face is what to do with the plethora of documents that they produce and accumulate. It is really necessary to hoard files away forever? Or are there some files that can be shredded? Kuester Management Group has released a statement to the press outlining the basics for HOA document retention practices.
“HOAs generate a lot of documents ranging from meeting minutes to vendor agreements to financial records to correspondences with homeowners,” says Bryan Kuester, President of Kuester Management Group. “This can be a lot to keep track of. And while some documents really do need to be kept indefinitely, there are others that can be cleared out after a few years to make more space and stay organized.”
Meeting minutes are one set of documents that HOAs definitely want to hang on to, notes Kuester. Since these are records of all of the actions taken by the HOA including who was in attendance, what was voted on, and what was shelved, they should be kept indefinitely. Keep more recent records readily available while older files can be stored away in larger boxes or offsite until they need to be accessed.
“Financial records and tax records should typically be retained for four to five years,” says Kuester. “This ensures they are kept until after any audits would be conducted and past when newer records and budgets are set and invoices are settled. If there is anything the association is unsure about, talk to your financial professional or attorney before destroying any documents.”
Another set of files that may be kept for a significant period of time is communications with homeowners. As long as a homeowner still resides in the neighborhood, any correspondences should be retained. It can be beneficial to have a paper trail should any disputes arise or should the HOA move forward with legal action. All legal documents related to claims or lawsuits should also be kept for an extended period of time until they are no longer valid.
When it comes to interactions with vendors, the time frame for keeping documents is often much shorter, says Kuester. For instance, once a contract has expired and a new agreement put in place, the old one can usually be destroyed unless there are unresolved issues. The same goes for warranties.
“It’s a good idea to be cautious about keeping documents, but at the same time, there is no point in keeping files that have long since passed their usefulness – such as repair records on equipment the HOA replaced years ago,” says Kuester. “If you are unsure about what to keep, talk to your property manager, attorney, financial advisor, or other professional who can help clarify retention requirements. You may also want to look in the association’s governing documents to see if there is anything related to record keeping.”
Kuester Management Group can provide valuable insight and guidance to HOAs when it comes to organizing, maintaining, and storing records of all types, including electronic documents.
For more information, contact Kuester today at www.kuester.com.
ABOUT:
Kuester Management Group, a division of Kuester Companies, works to protect property values and enhance the quality of life in each of its managed communities. Providing a full range of association management services, Kuester Management Group has worked to foster strong, resilient, and unified communities across North and South Carolina. The company is proud to offer on-site property managers, all zealous for building strong communities meant to stand the test of time.
More information is available at www.kuester.com or @KuesterCompany.
Media ContactCompany Name: Kuester Management GroupContact Person: Bryan KuesterEmail: Send EmailPhone: 704-973-9019Country: United StatesWebsite: www.kuester.com
