It’s not easy to keep track of the money for a homeowner’s association (HOA) or property community. It can be hard to keep up with everything when you have to pay monthly dues, upkeep expenses, reserves, and repairs. This is especially true if your financial solution feels like it belongs in 1998. You know how hard it is to fax something to your bank or wait on hold for an hour just to verify a wire transfer.
That’s why a lot of property managers and HOA boards are moving to online banking. But how do you choose the best one for your group?
Let’s go over the most important things to think about when picking the best HOA banking option. I’ll also share some lessons I’ve learned the hard way while helping to manage the finances of my own property connections.
Why Traditional Banks Often Fall Short for HOAs
Let’s be honest—most traditional banks weren’t built with HOAs or condo associations in mind. When we first took over the board at our building, we inherited a clunky system of physical checks, monthly paper statements, and manual ledger entries in Excel. It felt like we were running a small government with 2005 tools.
Even worse, every small transaction had to be approved and tracked manually. Need to pay the landscaper? That meant a physical check and a trip to the bank. Want to collect dues digitally? Good luck.
For personal accounts, regular banks might be fine. But when it comes to managing community funds, there needs to be more openness, control, and functionality.
What to Look for in an Online HOA Bank
It’s not just related to who has the best site or lowest rates when it comes to picking the right bank. It’s about identifying a financial partner who knows what your group needs and gives you the tools you need to make your life simpler.
Here’s what to prioritize:
1. Dedicated HOA/Community Banking Features
Some online banks offer specialized tools for HOAs and condos—others don’t. Look for features like:
- Segregated accounts for operating and reserve funds
- Automated dues collection and reminders
- Multi-user access with customizable permissions
- Audit trails for all transactions
- Budget tracking and financial reporting
When you’re managing funds on behalf of dozens—or even hundreds—of residents, these tools aren’t nice-to-haves; they’re essentials.
2. Security and FDIC Insurance
Safety first. Make sure your online bank is FDIC-insured (ideally up to $250K per account holder, per institution), uses strong encryption, and has multi-factor authentication. You want to sleep well at night knowing your HOA’s funds are protected.
3. Seamless Payment Collection
HOAs live and die by dues collection. Your bank should make it easy for homeowners to pay electronically—whether it’s through ACH transfers, credit cards, or digital wallets. Even better if late fees can be applied automatically.
When we switched to online payments, our delinquency rate dropped by more than half within a few months. Turns out people are more likely to pay when it’s as easy as tapping a button.
4. User-Friendly Interface
Your treasurer may be a CPA—but your president might be a retired teacher or volunteer with no financial background. The platform should be easy enough for anyone on the board to understand and use without calling tech support every week.
5. Customer Support That Gets It
HOA banking has quirks. You’ll likely need help setting up dual-signature permissions or linking multiple accounts. Choose a provider with responsive, knowledgeable support—not a generic chatbot that doesn’t know what “common interest development” means.
A Real-World Example: What Baselane Brings to the Table
We’d be remiss not to include a closer look at Baselane, a platform that’s gaining popularity among community associations, landlords, and property managers alike.
What makes Baselane stand out isn’t just its digital tools—it’s the way it’s structured to think like an HOA treasurer.
Intuitive Setup and Dashboard
Getting started on Baselane is surprisingly quick. You can open multiple accounts, create distinct buckets for operating and reserve funds, and invite your fellow board members with specific permission levels.
That last feature alone saved us from so many headaches. No more emailing back and forth trying to get approval for a $300 plumbing invoice. Everyone could log in, see what was going on, and vote in real-time.
Automated Rent and Dues Collection
Baselane lets you set up recurring payments and reminders for residents. The system keeps track of who has paid, sends reminders for payment delays, and keeps a ledger automatically, whether you’re collecting recurring payments or special assessments.
This meant that we didn’t have to have as many awkward conversations with our neighbors in the elevator about overdue bills.
Integrated Reporting and Budget Tools
I used to spend hours making monthly reports. It now takes ten minutes. Baselane’s reporting tools make it simple to show clear, honest financials at board sessions or annual HOA meetings. They break down costs by category and make year-to-date summaries.
The best part? No more spreadsheets that are hard to read.
Built-In Controls and Security
We could eventually impose dual-approval rules and make sure every dollar was accounted for because there were various user roles and a clear purchases track. We really felt safe for the first time when we added FDIC-insured deposits and two-factor authentication.
Questions to Ask Before You Commit
Here are some important questions to ask before you choose an online bank for your group:
How hard is it to open and keep track of more than one account?
Is it possible to change the roles of administrators, presidents, and committee members?
Are there clear records of transactions and changes?
Are deposits safe, and what protections against fraud are in place?
How do we move from our current system? If something goes wrong or we just have a question, will there be help?
It’s okay to ask for a demonstration or a trial account before you sign up. You don’t want to switch banks twice in a year.
The Hidden Value of Going Digital
It’s not just easier to do your HOA banking online. It’s about being clear, having control, and trusting the community.
People who live there want to know that their funds are being spent wisely. Board members want tools that make their jobs easier. And every individual wants to avoid unneeded disputes about money.
When our condo board started using online banking, something surprising happened: there were fewer fights at meetings. Why? Because all parties could see where the funding was going. The reports were automatic, the data was easy to get to, and the blame game was almost over.
It didn’t just help us get things done faster. It helped us be better neighbors.
Final Thoughts
The choice of online bank for your HOA or property association will affect every part of your community’s finances. Take the time to think about what you need, ask the right enquiries, and find a system that helps you reach your goals, not just make transactions.
The right digital tools can help you do your job better and make your board stronger, whether you’re in charge of a 10-unit condo building or a 300-home master-planned community.
It’s time to upgrade if you still use paper checks and an old-school binder.
Because let’s be honest, your community deserves better.