In Episode 45 of the Business Builder Series, real estate broker Bill Borden dives deep into a topic that often confuses buyers and agents alike—how to properly evaluate homeowner associations (HOAs) and condominium owner associations (COAs). With decades of experience and a pragmatic approach, Borden offers guidance that can elevate any agent’s due diligence process and better protect clients.
Here are three critical takeaways from his talk:
1. Treat the HOA Like a Business—Because It Is
“An HOA is a business. You need to know who’s running it and whether they’re competent.” — Bill Borden (05:27)
Too often, real estate professionals fail to investigate the leadership and structure behind an HOA or COA. Bill stresses the importance of asking:
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Who is on the board?
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Is the association professionally managed or volunteer-led?
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What kind of restrictions (e.g., on rentals or parking) are enforced?
Understanding who’s in charge and how well the organization is managed is crucial, especially when advising buyers. A poorly run HOA can directly impact home value and livability.
2. Assess the Financial Health—Before It Becomes Your Client’s Problem
“You need to see the budget, the reserves, and understand whether the monthly fees are sustainable.” — Bill Borden (13:03)
One of the most overlooked steps in due diligence is analyzing the HOA’s finances:
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How much is in the reserve fund?
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Are monthly dues realistic given upcoming maintenance needs?
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Will special assessments be necessary?
Bill provides a clear example of calculating reserve requirements and determining whether a complex is financially upside down. This kind of foresight can save clients from unexpected costs like $5,000 surprise assessments.
3. Due Diligence Isn’t Optional—It’s Your Professional Duty
“You have to go beyond filling out a checkbox on a contract. Get the paperwork, ask the questions, do the math.” — Bill Borden (29:03)
Whether you’re representing the buyer or seller, you owe it to your client to fully vet the HOA or COA. That means:
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Obtaining governing documents and financials early
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Asking for reserve studies (or doing your own simple version)
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Explaining the long-term implications of buying into a community with poor management or underfunded reserves
This proactive approach builds trust and positions you as an expert who goes beyond the basics.
Conclusion
Bill Borden’s advice serves as a reminder that real estate professionals must think like business analysts when dealing with HOAs and COAs. By doing proper research and asking tough questions, agents can help their clients make informed—and safe—investment decisions.