Scott Brady is co-owner and principal of Progressive Association Management, a CACM-member HOA management company serving 228 communities and nearly 15,000 homeowners throughout Southern California. Since founding the association management division in 2020, Scott has grown the company into the fastest organically growing association management firm in California by limiting manager workloads, providing full back-office support, and holding every team member accountable to documented daily service standards. |
You cannot watch the news, read an article, or listen to a business podcast without hearing about the future impact of artificial intelligence. It is clear that AI will affect some industries more than others, but every industry is trying to figure out what that impact will look like for them. Association management is no exception.
Private equity investors have already aggressively entered our space, either helping large management companies grow even larger or rolling up smaller companies to create new nationwide entities. It is estimated that over $2 billion has been invested in our industry in the past few years. Private equity seeks industries that are not only immune to AI disruption but can actually benefit from it operationally. The belief is that AI will reduce operating costs, increase efficiency, improve profit margins, and ultimately deliver an adequate return on investment.
How Software Companies Are Leading the Charge
The three major association management software companies, Vantaca, Cinc, and Frontsteps, are all investing heavily in AI. They are working to incorporate AI tools directly into their platforms and embed them into the operating systems of the companies that use their software. The goal is to free operations staff and community managers from the mundane, repetitive tasks that AI handles well, allowing them to focus on providing better service and maintaining a better quality of life.
AI excels at taking large amounts of information and distilling it quickly and efficiently, and associations deal with a lot of information. All boards must navigate the Davis-Stirling Statutes, which encompass hundreds of laws that govern board decision making. AI can process those statutes almost instantly and provide real-time guidance. The governing documents of an association, including the CC&Rs, By-laws, Articles of Incorporation, and Rules and Regulations, can run hundreds of pages and be incredibly complex. AI can summarize and simplify them.
How We Are Using AI at Progressive
Here are some specific ways we are incorporating AI into our business.
Operations
Every bill we receive must be entered into the software system, reviewed and approved by the board, and then paid. AI can scan an invoice, autofill the required information, and route it to the board through the software for approval and payment. A task that once took hours now takes seconds. The same applies to receivables. Every payment received, whether a physical check or an online payment, must be tagged and tracked so the owner receives proper credit. AI processes this far more quickly and accurately than manual entry.
Financials
Every month, the board receives a financial packet that includes a profit and loss statement, balance sheet, check register, budget comparison, aging reports, and a reconciliation statement. AI can take all of those documents and produce a single summary page for the board that highlights any financial “red flags” and helps the board focus on the most pressing issues.
The Board Packet
One of the most time-consuming tasks for a Community Manager is assembling the monthly or quarterly board packet, which includes the agenda, draft minutes, financial reports, management reports, contracts and proposals, and owner requests and violations. AI can organize these items into an initial board packet that the Community Manager can then review, modify, and approve for distribution.
Communication
Many owners, and particularly renters, do not read the governing documents, attend meetings, or stay current on community issues. As a result, they call or email the manager with questions like: is the community center available for a party next weekend, what pets are allowed, or where are my dues going? AI can handle these inquiries through a voice response system or an online chat function, freeing up manager time for higher-level work.
HOASnapshot
When a buyer purchases in a homeowner association, they are provided with hundreds of pages of documentation during escrow, including the governing documents, the annual budget, the reserve study, a balcony inspection if applicable, and other pertinent materials. Most buyers do not have the time or background to review and understand all of it. We have created a report using AI called HOASnapshot that distills and prioritizes this information into a four-page document. It includes an HOA Grade that reflects the financial health of the association, giving buyers confidence and clarity when purchasing in an HOA and flagging any areas that may warrant a closer look.
What This Means for Us
Our operations team is more efficient and can focus on higher-level, more meaningful work. Boards have better information and can process it more quickly. Owners get their questions answered faster and more accurately. Our Community Managers can step into the role of true board consultants, community experts, and company ambassadors. A position that was once defined by fielding calls and complaints from owners and vendors can now be focused on helping boards make better decisions and protect the assets of their associations, which ultimately supports stronger property values.
What This Means for Others
We intend to use AI to improve the lives of our team members, managers, boards, and owners. Other companies may use the efficiencies AI creates not to improve service, but to increase workloads and protect margins. The single largest expense in our industry is labor, and if AI can meaningfully reduce that cost, larger companies may choose to pocket the savings rather than pass the benefit on to their boards and communities. We hope that is not the case, but it is worth being aware of as AI becomes more deeply embedded in how this industry operates.
Have questions about how Progressive is using technology to serve our boards better? We would love to connect.
