Associa CEO John Carona joined the Building Texas Show to discuss the origins and growth of the world's largest homeowners association management company, the misunderstood role of HOAs, and the company's expansion into Europe. Recorded at Associa's Richardson headquarters, the conversation with host Justin McKenzie covered topics ranging from the company's humble beginnings to its future in international markets.
Carona, who started the business 18 months after graduating from the University of Texas at Austin, recalled working three jobs to put himself through school. 'We started out with just two employees, myself and one rather elderly assistant who I loved dearly,' he said. 'And from that we built this twenty-four thousand employee operation.' The growth came 'one client at a time,' organically at first and increasingly through acquisition. Associa has now acquired more than 200 separate companies and adds another 25 to 30 management firms each year.
Much of the episode aimed to address strong opinions about HOAs. Carona argued that the most important role of homeowners associations is preserving property values. 'The most important thing homeowners associations do is they preserve the value for the owners themselves by adding some degree of conformity, some reasonable rules and regulations,' he said, noting that property values in communities with mandatory HOAs grow faster than those without. He also addressed friction, pointing out that surveys consistently show just north of 95% of residents appreciate their community association experience. 'Now, four to five percent out there feel otherwise. And it's our job as a management company to try to address the issues that those four to five percent bring up.' Associa now surveys every board of directors it represents three times a year to catch problems early.
When asked what sets Associa apart, Carona highlighted technology and the company's investment in training. 'We live in the Amazon age. People want more for less, and there's nothing wrong with that,' he said. 'That same technological application applies with community associations, and we have to be able to do a better job, a more timely job, and do it for lower dollars.' Associa operates 340 branch offices across the United States, serving 44 states. This footprint allows employees to move markets without leaving the company, contributing to long tenures of 25, 30, and even 40 years. Employees have voted Associa a national best place to work for nine consecutive years, an achievement Carona called his proudest.
Associa recently acquired the number two operator in Spain, its first large international purchase, and expects to become the number one operator in that market by December. Carona described it as the opening move in a three-to-five-year rollout across Europe, with the UK, France, and Italy on the list and inbound interest from Germany. 'Whatever they call them, the procedure and the type of service is more or less the same,' he said of the varying terminology for community associations in different countries.
For homeowners buying into Texas's booming Triangle, Carona advised scrutinizing transportation, location, and build quality, because Texas does not license builders. 'From time to time, bad actors can come on the scene.' The full episode is available now wherever you get your podcasts.
