Some boards might be skeptical in hiring an HOA Management Company, this may be because they don’t understand the role, or because homeowners are unwilling. However, often an HOA Management Company will make some taxing tasks more efficient, and help the community grow overall. In this article, we will go over the main responsibilities and common questions related to an HOA Management Company.
Table of Content
- What is an HOA Management Company?
- HOA Management Companies’ Responsibilities
- Finance
- Rules/regulations
- Maintenance
- Management
- Communication
- How To Hire An HOA Management Company
- FAQ
- Final Thoughts
What is an HOA Management Company?
Normally, an HOA board consists of homeowners who don’t have as much time or expert knowledge to handle certain issues in an association. So, they might discuss hiring an HOA Management Company to assist with common tasks such as: implementing the board’s decisions, maintaining communication with homeowners, and aiding with administrative work.
All in all, a management company aids, advises the board, and takes on different tasks. An HOA Management Company works to improve the environment, service, and quality of an HOA for everyone who lives there.
HOA Management Companies’ Responsibilities
As mentioned previously, an HOA Management Company has a lot of duties and works in a lot of different areas. However, they do have limits. Below are the responsibilities an HOA Management Company has inside an HOA:
Finance
The HOA Management Company will be in charge of sending out bills to residents (normally monthly) and collecting their fees. Other responsibilities include:
- Keeping the board updated on financial matters
- Collecting overdue assessments
- Collecting corporation dues (which is deposited in the HOA’s account)
- Being in charge of delinquency notices
- Balance tracking
- Notifying homeowners if they have any late payments
- Providing funding advice to the board
- Estimating maintenance costs
- Creating financial records and reports, as well as distributing them
- Updating the board monthly on their financial status
In the case of late fees, the HOA Management Company has no power to disregard them or establish any new decisions; that is the HOA board’s duty.
Benefit of hiring an HOA Management Company to manage the finances of an HOA:
A good HOA Management Company will have the capability to handle finances well. This facilitates things for the board, as finances can be very overwhelming.
Rules/regulations
Every HOA will have certain rules and regulations to govern the association. The HOA board creates these policies, while an HOA Management Company is in charge of enforcing them by:
- Sending violation notices
- Newsletters with rule reminders
- Visiting the community to find any violations
- Ensuring that all homeowners are following the HOA’s CC&Rs.
Benefit of hiring an HOA Management Company to enforce the policies of an HOA:
Dealing with violations in an HOA can be quite complicated. An HOA Management Company will ease the burden of constantly reminding homeowners about the policies of the associations. It will be responsible for ensuring that all residents are following them – establishing a more organized and safe environment.
Maintenance
An HOA Management Company will ensure the association is in good condition and its common areas are well maintained. They will also make sure there are no possible risks and dangers that residents can be vulnerable to. To do that, they will:
- Regulate safety hazards
- Contract vendors to ensure pool maintenance, lawn care, electrical maintenance and so on.
- Inspect if common areas are well-maintained
- Ensure that the maintenance team is properly fulfilling their tasks
Additionally, because of so many maintenance requests from residents, an HOA Management Company will help organize all of them, address it to the board, and communicate back to the homeowner.
Benefit of hiring an HOA Management Company to assist with the maintenance of an HOA:
Apart from helping ensure that the community is well-maintained and the association is a comfortable place for residents, an HOA Management Company will help hire qualified professionals. This is because boards are unlikely to have a wide variety of contacts. Since management companies have been working with vendors, they have access to a wide range of networks to hire from.
Management
An HOA has many office duties that an HOA Management Company can help with, such as:
- Helping organize and coordinate the agenda and upcoming events
- Organizing board meetings
- Doing reports
- Replying to emails, calls, and messages
Property values are also very important for any HOA, so an HOA Management Company will help maintain these property values at a high level. In order to do this, they will conduct on-site management. This includes coordinating requests, ensuring equipment and common areas are well maintained, and that everything is in order.
Benefit of hiring an HOA Management Company to help manage an HOA:
An HOA Management Company will guarantee that the association is being managed fairly because they don’t know the community on a personal level. Since the HOA board consists of homeowners, it is possible that there might be bias or favoritism when enforcing certain rules and/or implementing decisions since they know the neighborhood so well.
Communication
As mentioned previously, an HOA Management Company will coordinate residents’ requests. Specifically for ARC requests, the company can communicate with residents about the decisions made by the board and the Architectural Review Committee.
The management company will also have to share important information about what is happening in the community – especially if it is related to new policies, safety protocols or an event coming up. As well as making this information easily accessible to residents.
Communication is the key to success. With quality, transparent, and consistent communication, building strong relationships within the HOA is possible.
Benefit of hiring an HOA Management Company to communicate with residents in an HOA:
Any good HOA Management will do its best to ensure that residents’ concerns and suggestions are heard and addressed. They should guarantee that homeowners feel comfortable in sharing their thoughts and ideas to help improve the community overall.
Communication is an integral part of any community. The video above shares ten tools to help your association improve communication. Even if you have a management company, using software and online tools is essential to effectively communicate with residents.
How To Hire An HOA Management Company
It’s not always easy to hire an HOA Management Company; for that, you need some research and previous planning. Before starting the process of hiring, it’s good to note down what services your HOA needs and start researching based on that. Below are some things to consider when trying to find an HOA Management Company for your association:
- They are licensed or accredited by CAI
- They have good quality administrative, financial, and customer service
- They have a good maintenance management system
- Their HOA Managers are licensed
- They have Insurance certificates
- How long they’ve been in the market for
- The availability of the HOA Management Company – so how quickly they answer
With that settled, you can now go through the process of hiring:
- Create a request proposal for each HOA Management Company that is aligned with your criteria.
- Evaluate your responses based on the determined criteria and start narrowing down your options
- Schedule interviews with your selected pool of HOA Management Companies
- Finally, once you’ve decided, have your HOA’s lawyers look over the papers before signing and making a deal with the company
Going through a complete and detailed process, while it can seem long and tiring, is extremely crucial to guarantee that you hire a quality HOA Management Company. If you don’t consider every aspect and rush your hiring process, you run the risk of having a company that may not be well-suited to manage your HOA, which will harm the association as a whole.
FAQ
What is the meaning of HOA dues?
HOA dues are the monthly or annual payments that residents make to their homeowners’ association (HOA). The money goes towards the community’s operating and reserve funds, which cover expenses like maintenance, repairs and upkeep of common areas.
How much does an HOA Management Company charge?
The final charge for an HOA Management Company relies on many factors, such as the community’s specific scope of services, the number of units in the association and the cost of living in the area. The management company may charge a percentage of the monthly HOA dues or a specific amount per unit.
Does my HOA need a Management Company?
To determine if your HOA needs a Management Company, it’s important to make a thorough assessment of the association’s specific needs and budget for hiring extra help.
A Management Company works to improve the environment, service, and quality of an HOA for all residents, so if you have the resources, hiring one may be the best option for the community as a whole.
Final Thoughts
An HOA Management Company is here to make the numerous and long tasks of the board much easier to handle. They won’t be responsible for creating and implementing decisions and rules, but they will ensure the community is well taken care of, homeowners are following the rules, and the association is organized and well managed.
Having an HOA Management Company can make an association work more effectively, which is why it’s important to thoroughly evaluate the company if you look to hire them.
If you want to start looking for HOA management companies but feel a bit lost and overwhelmed, click here to find out the top 10 HOA management companies in Florida.
To learn more about how to manage an HOA efficiently, schedule a free demo today and see how Neigbrs by Vinteum can be your partner on the path to success.
