Why proactive planning is Nevada HOA boards' best defense against rising costs

Nevada's homeowners associations are not a small corner of the housing market. According to the Community Associations Institute (CAI), the state is home to more than 4,000 community associations, representing roughly 502,000 homes and 1.3 million residents.

From growing master-planned communities to established neighborhoods, these associations shape daily life for a huge share of Nevadans, and the boards who volunteer to lead them are facing more complexity than ever.

To get a clearer picture of what is really happening inside Nevada HOAs right now, we sat down with Michele Ruffing, regional director at FirstService Residential.
 

The challenges and trends shaping Nevada HOAs today: An interview with Michele Ruffing

Q: Michele, tell us a bit about your background.

"I've been in the community management industry for 18 years and joined FirstService Residential two years ago. I grew up in California and moved to Nevada in 1995, so I've had a front row seat to watching this state grow. I've worked with everything from smaller single-family communities to large master-planned neighborhoods, and that range has taught me that every board faces its own version of the same core challenges."

—Michele Ruffing, regional director at FirstService Residential
  

Q: Nevada has such a wide range of community types. What does that variety look like on the ground?

"It's honestly one of the most interesting parts of this job. In neighborhoods like Cadence, Inspirada, Tule Springs, Summerlin, and Mountain's Edge, you see everything from young, growing families in newer developments to established communities with decades of history. Each one has its own personality and its own priorities, but the boards all share the same responsibility: protecting the long-term health of their community."

Q: What is the most common concern you hear when a new community transitions to FirstService Residential?

"By far, it's communication. Boards tell us their previous management company was hard to reach, or that residents felt like their questions disappeared into a void. That lack of communication from a community manager is the single biggest pain point we hear about. It erodes trust fast, and once trust is gone, everything else becomes harder, from getting volunteers to serve on the board to getting buy-in on a needed assessment."

Learn more about our property management transition services on our page here.
 

Q: What do you think sets FirstService Residential apart from other HOA management companies in Nevada?

"Technology and training make a real difference, but honestly, it's the depth of support behind each community manager that I'm proudest of. Our managers aren't out there alone. They have regional directors, vice presidents, accounting specialists, HR, and a dedicated training department all backing them up. That means when a board asks a tough question, our manager has a whole team to lean on to get the right answer, not just a guess."

Q: What has been the toughest challenge for Nevada HOA boards over the past few years?

"Two things, consistently: finding owners willing to serve on the board, and rising costs. Volunteer fatigue is real. People are busy, and serving on a board is unpaid, often thankless work. At the same time, insurance, labor, and materials costs have climbed steadily, and Nevada boards are absolutely feeling that pressure."

That pressure is well documented nationally. Research from the Foundation for Community Association Research found that 91% of community associations saw insurance premium increases in the past year, with nearly one in five seeing costs rise by more than 100%.
 

Q: Looking ahead, what should Nevada HOAs be getting ahead of?

"Reserve funding, without question. Nearly every association I work with is raising assessments right now, and it's not only because of rising costs. It's because they're playing catch-up on reserve accounts that have been underfunded for years. It's honestly surprising how many associations aren't close to adequately funded, and instead of addressing it proactively, they wait until they're forced into a steep increase, sometimes 15% or more in a single year, plus a separate reserve assessment on top of it."

This isn't just good practice, it's Nevada law. Under NRS 116.31152, every common-interest community must conduct a reserve study at least once every five years and review it annually, and NRS 116.3115 requires boards to fund reserves on a reasonable, adequate basis. Yet as Michele points out, too many boards still treat that requirement as a box to check rather than a real financial strategy.

"My advice is simple: don't wait. A small, consistent increase each year is so much easier for residents to absorb than one painful jump after years of deferral. Deferring reserve items doesn't make the cost go away. It just makes it bigger and more disruptive when it finally arrives."

Why this matters for your board

Reserve planning is not just a financial exercise. It is about protecting home values, avoiding painful surprise assessments, and giving residents confidence that their board is planning responsibly for the future. CAI's research shows that community associations nationwide manage significant collective resources, and homes within well-run associations are typically valued higher than comparable homes without one. A well-funded reserve account is one of the clearest signals of a board that is doing its job well.

For boards navigating rising costs, volunteer shortages, or a reserve account that has quietly fallen behind, the conversation does not have to be intimidating. It starts with an honest look at where things stand today and a realistic plan for closing any gaps gradually, rather than all at once.

Ready to take a closer look at your community's reserve health or communication practices? Our Nevada team is here to help your board build a plan that protects your community's finances and your residents' peace of mind. Reach out to FirstService Residential Nevada to start the conversation.

 This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.