Taking care of the needs of a community is a mammoth task. Generally, the homeowner association, known as the HOA, manages all the corporation’s daily affairs, keeping a balance between the needs and wants of the community. These responsibilities are challenging, and even volunteers need professional guidance and support to carry them out successfully.
When does an HOA property management step in?
When the above tasks become overwhelming and too much for the volunteer Board of managing directors, they can hire a credible HOA property management company for the job. However, there is a difference between the responsibilities between the HOA property management company and the HOA. Both parties manage the daily operations and duties relating to community building. Both have the same goals; however; they play different roles that have been described below-
The role of the HOA
The primary responsibilities and the role of the HOA and its owners depend upon governing documents under the state, local and federal laws. The HOA is looked after by a volunteer board of managing directors that homeowners elect. They monitor the maintenance of all the common areas and their amenities. They offer shared services in the community, like the collection of trash. The HOA also collects rental dues, enforces governing documents, covers ongoing costs, and saves for significant capital expenses. The Board is also responsible for looking after the above functions, making critical decisions, adopting specific policies, and recruiting vendors.
HOA management company – Its key roles and functions
As mentioned above, HOAs are looked after by the Board of managing directors that the members of the community elect. They perform all their duties voluntarily. However, several HOAs need the professional support of a third-party company to help them with their responsibilities. Generally, the HOA management firm is accountable for-.
- Guiding and consulting the Board of directors for fulfilling their duties.
- Executing directives, decisions, and other policies approved by the directors.
- Record transactions about the accounts and activities of the HOA.
The Board takes charge of decisions, and the HOA managers fulfill all the duties relating to maintenance, collection of dues, and payments to vendors, and they serve as the primary point of homeowner contact. The key responsibilities of the company are generally broken down into four categories-
- Management of account receivables.
- Administrative services.
- Management of the site.
- Accounting services.
Before choosing an HOA property management company, one must ensure it has been in business. An experienced company will have a qualified team of experts who are well-versed with HOA duties and responsibilities.
If you are in charge of hiring an HOA management company, take time to research its background and track records. You should meet the team in person and discuss the community’s specific needs. Before hiring the company, go through online reviews and testimonials to determine what their existing clients think about the company. Choose a company with positive online reviews and good testimonials. It will help you get the peace of mind you need for effective HOA management.
